What Happens If the Person at Fault in an Accident Has No Insurance in Iowa?

Iowa follows an at-fault auto liability system, meaning the driver who causes a car accident is legally and financially responsible for any resulting injuries or property damage. Typically, the at-fault driver's insurance provider covers these costs. However, when the responsible driver lacks insurance, the financial burden shifts dramatically—both for the uninsured driver and those affected by the accident.

At-fault drivers without insurance may be held personally liable for the full cost of the accident, including vehicle repairs, medical bills, and lost wages. In such cases, the Iowa Department of Transportation may suspend the driver's license and vehicle registration until the damages are paid or a settlement is reached. Driving without insurance is also classified as a misdemeanor in Iowa. It may lead to fines, license revocation, vehicle impoundment, or even jail time under laws governing Iowa traffic violations and infractions.

For drivers who were not at fault, the lack of insurance on the other party's side can make it difficult to obtain compensation. If the injured driver carries uninsured motorist (UM) coverage, their own insurance may help cover medical expenses and property damage. Without such coverage, they may be forced to cover their losses out of pocket and seek reimbursement through a civil lawsuit—a process that can be both lengthy and expensive.

Is It Illegal To Drive Without Insurance In Iowa?

Yes. The IA Code § 321.20B requires all drivers in the state to demonstrate financial responsibility for their vehicles. This means having an insurance policy that meets Iowa's minimum liability coverage. Drivers must carry proof of their coverage and produce it when requested by peace officers. A peace officer who finds a motorist guilty of violating the state's auto insurance policy may:

• Issue a warning memorandum or citation to the motorist
• Issue a citation and remove the motor vehicle's license plates and registration receipt
• Impound the motor vehicle
• Ask the motorist to pay a fine of $325, but if the motorist was involved in an accident, a mandatory fine of $645 applies (IA Code § 805.8A (14) (f)). The court may order the motorist to perform unpaid community service instead of the fine.

What Is the Minimum Insurance Requirement in Iowa?

Iowa's minimum liability coverage includes:

• $20,000 for bodily injury or death of a single person in a single accident;
• $40,000 total for bodily injury or death of two or more people in a single accident; and
• $15,000 for damage to or loss of someone else's property in a single accident.

Iowa drivers may discover that the right amount of insurance coverage they need may exceed the state-required minimum. Therefore, they can add uninsured/underinsured motorists (UM/UIM) and medical payments (MedPay) coverage to their auto insurance policies, which are not mandatory by state law.

What To Do After A Car Accident With an Uninsured Driver in Iowa

Being hit by an uninsured driver in Iowa can be stressful, but taking the following steps can help protect the victim's rights and minimize financial hardship:

• Report the Accident: If the accident causes personal injury, death, or total property damage of $1,500 or more, the victim should call the police and ask to complete an Iowa Accident Report Form. The report will help document fault and establish that the other party lacked insurance.
• Exchange Information and Gather Evidence: Get the other driver's name, contact information, and driver's license number. Take the photos of the damage, license plates, and the scene, and collect witness names and statements, if possible. The victim can also ask the responding officer for a copy of the police report number.
• Report to the Iowa Department of Administrative Services (DAS): The victim should report the accident to DAS Fleet Services within the first 24 hours of the incident to qualify for contingent fund use (per Iowa Code 29C.20). The DAS can be contacted by phone at (515) 281-3162 or by email at DAS.Risk@iowa.gov.
• Notify Insurance Company: The victim should report the accident to their insurance provider promptly. While uninsured motorist (UM) coverage is not mandatory in Iowa, those who have it may be able to recover costs for medical bills, lost wages, and pain and suffering after an accident. If the victim has collision coverage, that may also help with property damage costs regardless of the other driver's insurance status.
• Consider a Civil Lawsuit: Victims can also file a lawsuit against the uninsured driver to recover costs. However, it may be challenging to get compensation if the uninsured driver has limited financial resources.

What Happens If You Have No Insurance But The Other Driver Was At Fault?

Drivers without insurance who are involved in an accident caused by another driver can still recover damages in Iowa. The at-fault driver is legally responsible for covering injuries and property damage. However, the uninsured (but not-at-fault) driver may face fines or penalties for driving without insurance, which is illegal in the state. These penalties are separate from their right to recover damages and do not reduce the at-fault driver's liability.

Can I Sue an Uninsured Driver in Iowa?

Yes, victims can sue an uninsured driver in Iowa. If their damages are $6,500 or less, they can file complaints in Small Claims Court under Iowa Code § 631. For higher amounts, they have to file in the District Court in the county where that accident occurred. The plaintiff must petition the relevant court, serve the defendant, and prove fault and damages. The plaintiff can request a default judgment if the defendant does not respond. While the victim has the right to full compensation, collecting may be difficult if the driver has no assets.

Will My Insurance Cover Me If the At-Fault Driver Has No Insurance in Iowa?

Yes. Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage pay for bodily injuries caused by at-fault drivers without insurance or insufficient coverage. Either Uninsured Motorist Property Damage (UMPD) or collision coverage may apply for vehicle repairs after a crash with an uninsured driver. Medical expenses for the driver and passengers are covered under Medical Payments coverage (MedPay), regardless of who was at fault.

What Is Uninsured Motorist Coverage in Iowa?

Uninsured Motorist (UM) coverage protects a driver or passengers in a vehicle from bodily injury sustained in an accident involving a driver without insurance coverage. This is especially important in Iowa, where about 11.4% of motorists were uninsured as of 2023. Per IA Code § 516A.1, every auto liability policy issued in Iowa must include UM coverage, but the named insured can submit a written request to reject the coverage.

What If I Don't Have Uninsured Motorist Coverage in Iowa?

Drivers without uninsured motorist (UM) coverage in Iowa who are involved in an accident with an uninsured driver can still have several alternative routes to seek compensation. Here are some options:

• Sue the At-Fault Driver: A lawsuit can be filed against the uninsured driver to recover damages for medical bills, lost wages, and pain and suffering.
• Apply to the Iowa Crime Victim Compensation Program: Victims or individuals whose loved ones have suffered personal injury from a driver due to drunkenness, hit-and-run, or reckless driving may qualify for assistance through the Crime Victim Compensation Program. Applications can be made online or by submitting an Application for Crime Victim Compensation Form by mail.
• Seek compensation through Collision Coverage, Health Insurance, or MedPay (Medical Payments Coverage): Drivers who carry these coverages should contact their insurers, as they may help cover vehicle repairs or medical expenses after an accident, regardless of who was at fault.

How Do I Get Compensation from an Uninsured Driver in Iowa?

Motorists can get compensation from an uninsured driver in Iowa by filing a petition in Small Claims Court (Iowa Code § 631) if damages are $6,500 or less, or in the District Court Clerk's Office if over that amount. After filing, the plaintiff must serve the defendant with the petition within 90 days (Iowa Rule of Civil Procedure 1.302). The defendant then has 20 days to respond. If they answer, the case moves to discovery where evidence is exchanged (Iowa Rules of Civil Procedure 1.500–1.517). If they do not respond, the plaintiff can request a default judgment under Iowa Rules of Civil Procedure 1.972. Once a judgment is entered, it accrues interest at about 4–6% annually. The driver can then pursue collection of the judgment through wage garnishment under Iowa Code § 642, bank levies, or liens. However, if the defendant has no assets, collecting can be difficult. Judgments remain valid for up to 20 years if renewed within 10 years, per Iowa Code § 614.1.

How Much Can You Recover From an Uninsured At-Fault Driver in Iowa?

Iowa motorists have the legal right to sue an uninsured at-fault driver for full compensation, including medical bills, lost wages, and pain and suffering. However, collecting that money can be difficult if the driver has limited income or assets.

If the damages incurred during the accident are $6,500 or less, the motorist may pursue the at-fault driver in Iowa Small Claims Court. However, they can only recover the $6,500 cap. If the damages exceed that amount, they must file in a District Court in the county where the accident occurred. In District Courts, judgments earn interest, typically 4–6% annually, based on the one-year U.S. Treasury rate plus 2%. This interest continues to grow until the judgment is paid in full, which can incentivize eventual payment if the defendant becomes financially able.

How To Find Out If the At-Fault Driver Has Insurance in Iowa

Motorists can obtain a police or accident report to determine if an at-fault driver has insurance in Iowa. Within 72 hours of an accident involving injury, death, or property damage over $1,500, a motorist must file a report with the Iowa Department of Transportation (DOT). The report must contain information about the insurers of the parties involved, which helps to confirm whether the at-fault driver has active coverage.

Motorists can also copy the accident report from the DOT, which usually contains relevant insurance details for all parties involved in the incident. At the same time, the motorist's insurance provider may conduct an investigation and attempt to contact the at-fault party's insurer. The provider may classify the other driver as uninsured or underinsured if they cannot verify active coverage.

In cases where insurance status is unclear, the motorist can also contact the Iowa Insurance Division (IID) to verify whether the at-fault driver's insurance was valid during the accident. If their policy had lapsed, the driver may have been required to file an SR-22 certificate as proof of financial responsibility for future coverage.

Are Accidents Public Record in Iowa?

Yes. Some court filings related to uninsured driving claims are generally considered public records under the Iowa Open Records Law and Court Rules unless sealed explicitly by court order. The public can find these records online through the Iowa Courts Online Electronic Docket Record Search portal. A name, case ID, or citation number is required for the search. However, certain documents like accident reports and driver records are confidential. They are only open to the parties involved in the accident, their attorney, insurance agents, or insurance companies.

Can You Go to Jail for Causing an Accident Without Insurance in Iowa?

A person who violates Iowa auto insurance coverage commits a simple misdemeanor punishable by a fine. However, a second or subsequent driving violation without insurance within five years is classified as an aggravated misdemeanor. This offense is punishable by a jail term of up to two years and a fine between $865 and $8,540.

Can You Settle With an Uninsured Driver Out of Court in Iowa?

Yes, out-of-court settlements are legal and common for car accident claims in Iowa. Most car accident claims are resolved through settlements, rather than going to trial. This is often done through mediation or negotiations between the parties or insurance companies.

Can I Get Compensation If I Was Partially at Fault?

Yes, Iowa drivers can get compensation even if they were partially at fault in a car accident, but only under certain conditions. Iowa has a modified comparative negligence system under IA Code § 668.3 ensures liability is fairly distributed between the injured parties and the at-fault driver. This means a claimant can recover damages for property damage or personal injury if their fault is 50% or less. However, no compensation will be given if the claimant is found to be more than 50% at fault for the accident. When the claimant is 50% or less at fault, their compensation is reduced in proportion to their share of fault.