At Pete Beckman Insurance, we want you to understand your options when choosing an auto insurance policy. We will ask questions and provide clear information about auto insurance coverage options to create an affordable plan best suited for your needs.
About Auto Insurance in Iowa
No matter the vehicle or driver, you will want to have auto insurance protection for you and your family. At its most basic, auto insurance protects you against financial loss in an accident and serves as a contract between you and the insurance company. You agree to pay the premium, and the insurance company agrees to pay your losses as defined in your policy.
Auto insurance provides three basic coverages, including the following:
- Property coverage pays for damages to or theft of your car
- Liability coverage pays for legal responsibility to others for bodily injury or property damage
- Medical coverage pays for the cost of treating injuries, rehabilitation, and, in some cases, lost wages and funeral expenses
We'll break down each coverage type with you. Once you have chosen your insurance carrier, your auto policy will last from six months to a year.
Required Iowa Car Insurance Coverage
Iowa's Motor Vehicle Financial Responsibility law requires all motorists to have at least a liability auto insurance policy. As a driver, you will need liability insurance. This policy ensures motorists can cover bodily or property damage done to others while driving. Although liability policies cover auto insurance basics, not every situation may be covered.
Liability insurance includes the following:
- Bodily Injury Liability: Applies to injuries you, the designated driver, or policyholder cause to someone else. You and family members listed on the policy are also covered when driving someone else's car with their permission.
- Property Damage Liability: Pays for damage the driver may cause to someone else's property. Besides car damage, this could include damage to lamp posts, telephone poles, fences, buildings, or other structures.
Other Coverage Options
- Medical Payments or Personal Injury Protection (PIP): Pays for treatment of injuries to the driver and passengers of the policyholder's car. PIP can cover medical payments, lost wages, and the cost of replacing services normally performed by someone injured in an accident; it may also cover funeral costs.
- Collision: Pays for damage to your car resulting from a collision with another car or object.
- Comprehensive: Reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, explosion, natural disasters, vandalism, riot, or contact with animals.
- Uninsured and Underinsured Motorist Coverage: Reimburses you, a family member, or a designated driver if an uninsured or hit-and-run driver hits one of you.
- Leasing a Car: Your auto dealer or bank financing the car will require you to buy collision and comprehensive coverage on top of mandatory auto liability insurance. The leasing company may also require "gap" insurance. If you have an accident and your leased car is damaged beyond repair or "totaled," there's likely a difference between the amount that you still owe the auto dealer and the check you'll get from the insurance company. This is where gap insurance coverage comes into play; gap insurance is generally rolled into lease payments and isn't a separate payment.
- Renting a Car: You will need insurance coverage. If you have collision and comprehensive insurance, this may be enough for your rental car. Call for more information.
We also offer SR-22 coverage, also known as high-risk insurance.
The Difference Between Policy Cancellation and Non-renewal
It is crucial to understand the difference between a company canceling a policy or choosing not to renew it. Insurance companies cannot cancel a policy that has been enacted for more than 60 days, except for the following cases:
- If you fail to pay the premium
- You have committed fraud or made serious misrepresentations on your application
- Your driver's license has been revoked or suspended
Non-renewal is an entirely different matter than cancellation. Either you or your insurance company can decide not to renew the policy when it expires. Iowa requires your insurance company to give you at least 10 days notice and explain the reason for non-renewal before it drops your policy. If you think the reason is unfair or want a further explanation, call the insurance company's consumer affairs division. Call the Iowa Insurance Division if you don't get an explanation.
Contact Us for a Quote
Our team at Pete Beckman Insurance is ready to help find the auto insurance coverage for you and your family. Let us do the work and give you peace of mind on the road. Request a free auto quote to get started today!