Insurance

If you are involved in an accident as either the driver or owner of a motor vehicle, or if your license has been suspended or revoked, you must show financial responsibility. Iowa does not have a compulsory insurance law. Instead, the Financial and Safety Responsibility Act protects drivers from the financially unsound and reckless driver by:

• Suspending the operating and registration privileges of a driver or owner who has not been able to show immediate financial responsibility following an accident; and
• By requiring anyone whose driver's license has been suspended or revoked because of a conviction, unsatisfied judgment or violation of the OWI law to prove financial responsibility for any future damages or injuries that driver may cause.

Financial responsibility can be proved in the following ways.

• Show proof of automobile liability insurance at the time of the crash (proof of liability insurance should be carried in the automobile).
• Post cash, cashier's check, certified check, bank draft or postal money order payable to the Office of Driver Services.
• Get releases from all other damaged or injured parties.
• Obtain a decision resulting from a civil damage action relieving all liability.
• File an agreement to pay the other damaged or injured parties on an installment plan.
• Execute a warrant for confession of judgment that includes an agreement upon payment schedule.
• File evidence of a complete settlement of all damages or injuries.

For more information on these requirements click here, or visit the Iowa DOT's Office of Driver Services' Web site at http://www.iowadot.gov/mvd/ods/financial.htm.