Uninsured vs. Underinsured Motorist Coverage in Iowa

By the FigureMyTax Editorial Team · How we calculate

Iowa requires uninsured, hit-and-run and underinsured motorist coverage in every liability policy unless the named insured rejects it in a signed writing. The limits must at least equal the financial responsibility minimums.

Required coverage

Iowa Code 516A.1 requires coverage for people legally entitled to recover from the owner or operator of an uninsured, hit-and-run or underinsured vehicle because of bodily injury, sickness, disease or death, with hit-and-run covering physical contact with the insured or the vehicle the insured is occupying. Both the uninsured/hit-and-run and the underinsured coverage must have limits at least equal to the minimums, and the commissioner approves the forms.

Rejection

The named insured may reject all of the coverage, or the uninsured/hit-and-run coverage, or the underinsured coverage, by written rejections signed by the named insured. A rejection on an insurer's form must be on a separate sheet of paper containing only the rejection and directly related information. The coverage need not be offered at renewal if the insured rejected it with the same insurer.

Minimum limits

The minimum liability limits are $20,000 for one person, $40,000 for two or more people and $15,000 for property damage (Iowa Code 321A.1(11)).

What the statute does not say

Iowa's statutes do not define when a driver is underinsured or say how much UIM pays after the other driver's payment, and policies may include offsets to avoid duplicating benefits (516A.2(1)(a)). The calculator shows both an "on top of" and a "reduced by" reading. Ask your insurer in writing which applies, and see an attorney if the answer reduces your recovery.

Deadlines and next steps

Actions founded on injuries to the person must be brought within 2 years (Iowa Code 614.1(2)). Stacking is a separate question; see our statute post and the explainer, then use the Iowa UM/UIM stacking calculator.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Iowa's rules apply to your specific case with a licensed Iowa attorney.