Do You Need Insurance to Register a Car in Iowa in 2025
Iowa law mandates motor vehicle liability insurance for all vehicles operated on public roadways. Under Iowa Code Chapter 321A, the Motor Vehicle Financial Responsibility Act, and Iowa Code Section 321.20B, financial responsibility must be established before a vehicle may be operated in the state. The requirement applies to drivers operating motor vehicles on Iowa highways and ensures adequate protection for persons and property in the event of motor vehicle accidents.
Legal Requirement for Insurance Coverage
Section 321.20B of the Iowa Code establishes that a person shall not drive a motor vehicle on the highways of this state unless financial liability coverage is in effect for the motor vehicle. This requirement ensures that all drivers maintain adequate financial responsibility to compensate others for damages resulting from motor vehicle accidents. The financial responsibility requirement applies to both residents and nonresidents operating vehicles on Iowa roadways, with limited exceptions for specific vehicle categories.
The Iowa Department of Transportation oversees driver licensing and certain registration functions. However, vehicle registration, title, and plate services are processed through county treasurer offices located throughout the state.
Motor vehicle operators must carry proof of financial liability coverage in the vehicle at all times. Operating a vehicle without financial liability coverage constitutes a violation of Iowa law. Peace officers may issue citations, remove license plates, or impound vehicles when drivers cannot provide proof of insurance. Penalties may include fines, administrative fees, vehicle impoundment, and registration suspension.
Iowa Department of Transportation
800 Lincoln Way, Ames, IA 50010
Phone: (515) 239-1101
Official Website: Iowa Department of Transportation
Minimum Insurance Coverage Requirements
Section 321A.21 of the Iowa Code establishes minimum coverage amounts for motor vehicle liability policies. The Iowa Insurance Division regulates insurance companies and provides guidance on coverage requirements. Iowa requires drivers to maintain liability insurance coverage that meets or exceeds statutory minimum amounts.
| Coverage Type | Minimum Amount |
|---|---|
| Bodily injury or death of one person | $20,000 |
| Bodily injury or death of two or more persons | $40,000 |
| Property damage or destruction | $15,000 |
The minimum coverage requirements established by Iowa law apply to liability insurance only. Iowa law does not mandate collision coverage, comprehensive coverage, or medical payments coverage for motor vehicles. Uninsured motorist coverage and underinsured motorist coverage equal to the liability coverage limits are required under Iowa Code Chapter 516A unless the insured rejects this coverage in writing. Lenders typically require comprehensive and collision coverage for financed vehicles as a condition of the loan agreement.
Iowa Insurance Division
1963 Bell Avenue, Suite 100, Des Moines, IA 50315
Phone: (515) 654-6600
Official Website: Iowa Insurance Division
Proof of Insurance Documents
In Iowa, drivers must carry proof of motor vehicle financial liability coverage at all times while operating a motor vehicle. Iowa Code Section 321.20B specifies that drivers must have in the motor vehicle the proof of financial liability coverage card issued for the motor vehicle. The following formats are accepted:
- Insurance ID Card (Paper): The traditional printed insurance card provided by insurance companies shows policy information and coverage details.
- Digital Insurance Card (Electronic): Iowa accepts electronic proof of insurance displayed on cellular telephones or any other portable electronic device with a display screen. Electronic images displayed on smartphones or tablets constitute acceptable proof of insurance.
- Full Insurance Policy: The complete insurance policy document showing coverage information.
- Declaration Page: The declaration page from the policy summarizes coverage amounts and policy details.
- Insurance Binder: A temporary proof of insurance document issued while the full policy is being processed.
Insurance Verification System
Iowa law requires insurance companies transacting business in the state to issue financial liability coverage cards to insured owners of motor vehicles registered in Iowa. Each financial liability coverage card must identify the registration number or vehicle identification number of the insured motor vehicle and indicate the expiration date of the applicable insurance coverage. The card must contain the name and address of the insurer, the name of the insurance agency, the name of the insured, and an emergency telephone number.
Peace officers verify insurance coverage during traffic stops and accident investigations. When a peace officer stops a motor vehicle registered in Iowa and the driver is unable to provide proof of financial liability coverage, the peace officer may issue a warning, issue a citation, or issue a citation and remove the vehicle's license plates and registration receipt. For serious violations, peace officers may impound the vehicle in addition to removing plates and issuing citations.
County treasurer offices verify insurance compliance during vehicle registration transactions. The county treasurer's office may require proof of insurance for certain registration transactions, particularly when reinstating registration after suspension or when special circumstances apply.
Exceptions to Insurance Requirements
Limited exceptions to the financial responsibility requirement exist under Iowa Code Section 321.20B:
- Government Vehicles: Operators of motor vehicles owned by or leased to the United States, Iowa or another state, or any political subdivision of Iowa or another state.
- Vehicles Subject to Other Financial Responsibility Provisions: Motor vehicles subject to Iowa Code Section 325A.6 regarding motor carriers.
- Fleet Owners with Self-Insurance Certificates: Fleet owners issued certificates of self-insurance under Iowa Code Section 321A.34 are not required to maintain individual financial liability coverage cards in each vehicle with the registration number or vehicle identification number.
- Lienholders: Lienholders who have a security interest in a motor vehicle, as long as the lienholder maintains financial liability coverage for any motor vehicle driven or moved by the lienholder in which the lienholder has an interest.
- Motor Vehicle Dealers and Wholesalers: Motor vehicles owned by motor vehicle dealers or wholesalers licensed under Iowa Code Chapter 322.
Insurance Requirements for Vehicle Registration
County treasurer offices throughout Iowa process vehicle registration applications and renewals. Iowa law requires residents to register their motor vehicles with the county treasurer's office in their county of residence within 30 days from the date they establish residency. Vehicle registration services are handled at the local level through county treasurer offices rather than through the Iowa Department of Transportation.
Insurance coverage must remain in effect throughout the registration period. If financial liability coverage for a motor vehicle registered in Iowa is canceled or terminated effective prior to the expiration date indicated on the financial liability coverage card issued for the vehicle, the person to whom the card was issued must destroy the card. Operating a vehicle without financial liability coverage may result in a citation, license plate removal, administrative fees, and vehicle impoundment.
New Iowa residents registering vehicles from other states must establish Iowa insurance coverage. Out-of-state insurance policies do not satisfy Iowa registration requirements for vehicles being registered in Iowa. New residents should contact licensed insurance agents to obtain Iowa insurance coverage before completing vehicle registration.
Online registration renewals are available through the Iowa County Treasurers website. The online system processes renewal transactions for eligible vehicles. Vehicles requiring proof of SR-22 insurance or vehicles with other special requirements may not qualify for online renewal and must complete renewal transactions in person at the county treasurer's office. Registration renewals processed online are completed and mailed within 24 business hours of payment authorization.
