The national guide explains the personal auto policy: liability, medical payments, uninsured motorists, physical damage, and the duties after a loss. Iowa is an at-fault (tort) state with no PIP requirement. Iowa's auto questions focus on four areas:

• the financial responsibility law (Iowa Code chapters 321 and 321A);
• uninsured and underinsured motorist coverage (chapter 516A);
• the Automobile Insurance Cancellation Control Act (chapter 515D);
• the Division's claim settlement rules.

Fault and financial responsibility

• Auto injury claims are decided by fault. Iowa uses modified comparative fault: an injured person recovers damages reduced by their own share of fault, unless their fault is greater than the combined fault of the defendants (Iowa Code 668.3). For example, a plaintiff 40% at fault with $100,000 in damages recovers $60,000.
• Every vehicle driven on Iowa highways must carry financial liability coverage (Iowa Code 321.20B).
• Minimum limits: $20,000 per person / $40,000 per accident for bodily injury and $15,000 for property damage. That is 20/40/15 (Iowa Code 321A.1(11)).
• Proof of coverage must be carried, on paper or on a phone. The card shows the vehicle, the coverage expiration date and the insurer or agency contact (Iowa Code 321.20B).
• No proof: an officer may issue a warning or citation, remove the plates and registration, or impound the vehicle.
• Who the policy covers: the named insured and anyone using the vehicle with express or implied permission, within the United States and Canada (Iowa Code 321A.21).
• A binder satisfies the policy requirement while the policy is being issued.

Proof of financial responsibility after an accident or conviction

Chapter 321A requires proof of future financial responsibility after certain accidents, convictions or unpaid judgments.

• After an accident: a driver without liability coverage must deposit security or face suspension within 60 days of the accident report. A driver whose vehicle had a liability policy in force is exempt (Iowa Code 321A.5).
• Unpaid judgments: the clerk reports a judgment unpaid after 60 days to the department, and suspension follows (Iowa Code 321A.12–13).
• Ways to give proof:
  • a certified insurance policy, which can't be cancelled until 10 days after notice to the department (Iowa Code 321A.22);
  • a bond;
  • a $55,000 certificate of deposit (Iowa Code 321A.25).
• How long proof is kept: proof may be cancelled after two years if there are no new qualifying convictions (Iowa Code 321A.29).
• Terminology: Iowa's statute speaks of proof of financial responsibility and certified policies. "SR-22" is the industry name for the filing.

Uninsured and underinsured motorist coverage (chapter 516A)

• UM, hit-and-run and UIM coverage must be included in every auto liability policy on vehicles registered or garaged in Iowa, at limits at least equal to 20/40. The named insured may reject it in writing, on a separate sheet with only the rejection on it (Iowa Code 516A.1).
• A rejection carries over to renewals with the same insurer.
• Hit-and-run coverage requires physical contact between the hit-and-run vehicle and the insured or the vehicle the insured was in.
• A vehicle whose insurer is insolvent counts as uninsured (Iowa Code 516A.3).
• Antistacking language is enforced. The insured recovers up to the highest single limit under any one policy (Iowa Code 516A.2).
• The insurer that pays has a right to recover from the responsible party (Iowa Code 516A.4).
• Required notice: UM/UIM pays for bodily injury only. Vehicle damage needs collision coverage (191 IAC 15.10).

Cancellation and nonrenewal (Iowa Code chapter 515D)

• First 60 days: a new policy may be cancelled for any lawful reason.
• After 60 days (Iowa Code 515D.4), cancellation is limited to:
  • nonpayment;
  • fraud or material misrepresentation;
  • violation of policy terms;
  • driver reasons, such as a license suspension or revocation. The insurer may instead exclude the problem driver, with 20 days' notice (Iowa Code 515D.5(2)).
• Cancellation notice: at least 30 days, or 10 days for nonpayment (Iowa Code 515D.5).
• Not a cancellation: a midterm change to a non-collision deductible of $100 or less.
• Banned nonrenewal reasons: nonrenewal may not be based solely on age, residence, sex, race, color, creed or occupation (Iowa Code 515D.6).
• Hearing: the insured may ask the commissioner for a hearing within 15 days of getting the reason. The insurer bears the burden of proof (Iowa Code 515D.10).
• Residual market: every cancellation or nonrenewal notice must tell the insured about possible coverage through the Iowa automobile insurance plan (assigned risk) (Iowa Code 515D.11).
• Scope: the chapter does not apply to:
  • assigned-risk policies;
  • garage policies;
  • policies covering more than four autos.
• Renewal does not waive grounds for cancellation that existed before it (Iowa Code 515D.9).

Claim settlement rules (191 IAC 15.43–15.45)

• Total loss cash settlement: the cost of a comparable vehicle, including taxes, license and transfer fees, minus the deductible.
• Recourse: if the insured can't buy a comparable car for that amount and tells the insurer within 35 days of receiving the check, the insurer must reopen the file.
• Actual cash value means replacement cost minus depreciation, or market value. The insured may ask for the depreciation worksheet (191 IAC 15.44(2)).
• Matching: replacements must give a reasonably uniform appearance within the same line of sight, at no cost beyond the deductible.
• Aftermarket crash parts: they can't be required unless certified as equal to OEM parts or compliant with federal safety standards. Insureds must get a notice explaining that the policy pays for aftermarket parts (191 IAC 15.45).
• Credit information can't be the sole basis to deny, cancel or nonrenew personal auto coverage (Iowa Code 515.103).

Transportation network (rideshare) drivers (chapter 321N)

• Logged on and available: 50/100/25 (Iowa Code 321N.4(2)).
• During a prearranged ride: $1,000,000 (Iowa Code 321N.4(3)). The ride runs from accepting the request until the last rider leaves.
• If the driver's coverage lapses, the company's insurance pays from the first dollar.
• A personal auto insurer may exclude all coverage while the driver is logged on or giving rides (Iowa Code 321N.6). The company must disclose this to drivers (Iowa Code 321N.5).
• Drivers must notify a lienholder before using a financed car. The penalty for not doing so is $250 (Iowa Code 321N.3).

Common exam traps

• Iowa minimums are 20/40/15. Iowa has no PIP and is a fault state.
• UM/UIM is included unless rejected in writing on a separate form. A rejection carries over to renewals.
• Iowa's comparative fault bar is greater than the combined defendants. At 50%, a plaintiff still recovers.
• After 60 days, auto cancellation needs a listed reason. Notice is 30 days, or 10 for nonpayment. A driver may be excluded instead.
• The total-loss recourse window is 35 days.