by Solo Insurance®
According to Axios*, “Iowa’s car insurance rates dip 5%, buck national trend” (Clayworth, Des Moines, 2-10-2025). Though not a lot, it’s worth looking into.
KEEPING INSURANCE RATES DOWN
What are some of the things that help keep overall auto insurance rates down?
- State rates tend to stay down when there are fewer overall incidents. What are “incidents?” They include things like thefts, hailstorms, the number of drivers on the road causing accidents (and how many of them are driving legally with car insurance).
- The value of the average vehicle across a state and the number of cars on the road can affect rates. Note, it’s often more expensive to insure electric vehicles (EV) and the Iowa article mentioned that Iowa hasn’t been as quick to jump on the EV bandwagon as some other states.
- Where insurance rules are enforced, rates tend to be steadier. “People don’t do what you expect but what you inspect.” (Lou Gerstner, IBM CEO). It helps rates when everyone is insured because of less uninsured motorist claims or costs associated with repairing vehicles.
Solo Insurance® quotes Iowa. Click here.
BUT I DON’T HAVE ANY TICKETS OR ACCIDENTS!
Everyone knows, when you have a car accident or get tickets, your rates go up. So why are yours? You haven’t had a ticket or accident! What are some of the things that are causing auto insurance rates to continue to climb across the board?
- The amount of insurance fraud is an often-overlooked cause. An article on Yahoo!Finance**, states that, “The FBI reports that insurance fraud costs the average U.S. family between $400-$700 annually in increased premiums.” (Hayes, Yahoo!Finance, updated 3-18-2025). Fraud impacts everyone. If a state has a higher level of fraudulent activity, its rates trend higher. See our blog about car insurance fraud from 2-20-20 (it still holds true).
- The number of people driving without car insurance has a grave impact on the rates of those who continue their coverage. Insurance companies are pulling out of some states because of this issue (plus everything else like fraud, storms, etc). Less insurance coverage + more drivers = more uninsured incidents which leads to higher rates. An uninsured driver causing an accident may take off or present fake information to get out of the immediate situation leaving the other person’s insurance company to pay.
- There has also been an increase of people who don’t know the rules of the road or take the time to get to know a state’s driving laws. Some drivers don’t even have a driver’s license. So when an accident happens, it causes unexpected expenses for insurance companies that didn’t used to be factored into our rates. It gets expensive for insurance companies to cover these costs.
HOW DO I HELP MY RATES?
So, we hope for continued improvement in Iowa but that seems to buck the trend. Whether in Iowa or any state, a good practice is to re-check your car insurance rates at renewals. Make sure you compare the same coverage as you have now to get the most accurate picture. It’s something we’ve done for our clients automatically for decades. It’s also important to not let your car insurance lapse. If there’s any way to work your budget to go to paid in full, this is the cheapest way with auto-pay (EFT/ACH) the next best.
For a free, no obligation rate review, click here.
References
* AXIOS https://www.axios.com/local/des-moines/2025/02/10/iowa-car-insurance-rates-dip-electric-vehicles
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