Iowa Personal Auto Insurance and Rating Rules

Private-Passenger Auto — Iowa Specifics

Uninsured/Underinsured Motorist Coverage (Iowa Code 516A.1-2)

Iowa Code Chapter 516A requires every Iowa auto liability policy to include UM and UIM coverage with bodily injury limits at least equal to the financial responsibility minimums of Iowa Code 321A.1(11). The applicant may reject UM/UIM, but the rejection must be in writing under Iowa Code 516A.1-2. Silence does not equal rejection; an attempted oral or implied rejection that does not comply with the statutory writing requirement is ineffective.

Proof of Financial Responsibility (Iowa Code 321A.19)

Iowa Code 321A.19 sets the procedural rules for demonstrating financial responsibility through an SR-22 filing. The SR-22 must be maintained for the duration required by law (typically 2 years). The insurer must notify the Iowa DOT if the policy lapses.

Aftermarket Parts Regulation (Iowa Admin Rule 191-15.45)

Iowa permits the use of aftermarket crash parts in repair of automobiles, subject to:

• Disclosure to the insured. The repair estimate must clearly identify any non-OEM parts.
• Quality standards. Aftermarket parts must be of like kind and quality to OEM parts.
• Warranty notice. A policy that pays based on the cost of aftermarket crash parts must tell the insured that any warranties on those parts come from their manufacturer or distributor, not the vehicle’s manufacturer.
• Consumer choice. The insured generally has the right to insist on OEM parts at additional cost if desired.

Iowa Automobile Insurance Plan / Assigned Risk (Iowa Code 515D.11)

Iowa’s AIP is the auto residual market. Iowa Code 515D.11 requires an insurer that cancels or nonrenews auto liability coverage for a reason other than nonpayment of premium to tell the insured of possible eligibility through the plan.

Transportation Network Companies (Iowa Code 321N.1(5); 321N.4(2)(a))

Iowa Code Chapter 321N regulates rideshare insurance. The statute sets one insurance requirement while the driver is logged on and available for ride requests and a higher one from the moment a ride request is accepted until the last rider leaves the vehicle; these are commonly described as three periods:

• Period 1 — App on, no ride request accepted. Primary auto liability of at least $50,000 per person and $100,000 per accident for bodily injury and $25,000 for property damage (Iowa Code 321N.4(2)(a)), plus UM/UIM.
• Period 2 — Ride accepted, en route to passenger. Higher limits — at least $1 million combined single limit (Iowa Code 321N.4(3)(a)).
• Period 3 — Passenger in vehicle. Same higher limits as Period 2.
• Coverage source. Either the TNC or the driver (or a combination) may carry the required coverage during each period. In practice, the TNC typically provides Period 2 and 3 coverage, and the driver’s personal auto carrier may extend Period 1 with a TNC endorsement.

CORE IDEA — Personal auto’s TNC gap

Standard Iowa personal auto policies typically exclude coverage when the vehicle is being used to transport persons for hire. Without specific TNC coverage, a rideshare driver in any of the three periods has no insurance. Iowa Code 321N forces both the TNC and the driver to ensure that gap is filled.

Rate Standards (Iowa Code 515F.4(1); 515F.5(1)(a))

Iowa rates must meet three standards: not excessive, not inadequate, not unfairly discriminatory. Insurers file rates with IID, and a filing must be on file for a 30-day waiting period (which the commissioner may extend by up to 15 days) before it takes effect; it is deemed to meet the requirements unless the commissioner disapproves it within that period (Iowa Code 515F.5(3)).