Why It’s Beneficial to Increase Auto Liability Limits Above State Minimums

Auto liability insurance is a requirement in most states, including Iowa. It’s designed to protect drivers financially if they cause an accident that results in bodily injury or property damage to others. However, the state minimum requirements for liability insurance may not be enough to provide adequate coverage in some situations. In this blog post, we’ll explore why it’s beneficial to increase auto liability limits above state minimums and what the state minimums for Iowa are.

What are the State Minimums for Iowa?

In Iowa, the state minimum requirements for liability insurance are as follows:

  • $20,000 per person for bodily injury
  • $40,000 per accident for bodily injury
  • $15,000 per accident for property damage

These minimums are relatively low compared to other states, and may not be enough to cover the full costs of an accident.

Benefits of Increasing Auto Liability Limits

1. Protection from Lawsuits

If you cause an accident that results in damages exceeding your insurance policy’s limits, you could be sued for the difference. By increasing your liability limits, you can help protect yourself from potential lawsuits.

2. More Comprehensive Coverage

Higher liability limits may provide more comprehensive coverage for a wider range of damages, including bodily injury, property damage, and even legal fees. This can help you avoid out-of-pocket expenses that can be financially devastating.

3. Peace of Mind

Knowing that you have more coverage than the state minimum requirements can provide peace of mind, especially if you frequently drive in high-risk areas or with high-value vehicles. You can drive with confidence knowing that you’re adequately protected in case of an accident.

4. Better Financial Protection

Higher liability limits can provide better financial protection in the event of an accident. For example, if you cause an accident that results in $50,000 in damages and you only have a policy with a $20,000 limit, you could be on the hook for the remaining $30,000 out of pocket. However, if you have higher liability limits, you’ll have more financial protection and won’t be responsible for as much of the costs.


Increasing your auto liability limits above the state minimums can provide valuable protection and peace of mind. The state minimums for Iowa are relatively low compared to other states, so it’s important to consider increasing your coverage if you want more comprehensive protection. So the big question is…. How much you can afford? Please reach out to our staff today to determine the appropriate level of coverage for your needs. Reach out here.

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