The state of Iowa does not have a compulsory insurance law but does require motorist to be financially responsible. This means that Iowa motorists are not required to carry Iowa car insurance but if they do not they will need to show another form of financial responsibility such as a bond.

Under Iowa law, motorists that choose to provide proof of financial responsibility with Iowa car insurance must be covered for bodily injury and property damage liability. The minimum amount of these coverages allowed is 20/40/15. This means that you must carry $20,000 for bodily injury per person, $40,000 for bodily injury per accident and $15,000 for property damage per accident.

The IA Financial and Safety Responsibility Act law protects Iowa drivers by suspending the driving and registration privileges of anyone who has not been able to show financial responsibility following an accident. It also makes sure that anyone who has had his/her driving privileges suspended or revoked because of certain convictions, an unsatisfied judgment, or a violation of implied consent laws will be able to financially compensate others for future damages or injuries that the driver may cause.

According to the Iowa Driver's Manual located at the Driver's Services division of the IA Department of Transportation site, if you do not have liability insurance when you are involved in an accident, you must do one of the following to avoid suspension:

• post cash, cashier’s check, certified check, bank draft, surety bond or postal money order, payable to the Iowa Office of Driver Services. If you have not been sued in that time, the money will be returned to you.

• get written releases from all persons whose property was damaged and/or the injured parties. Forms are available from the Office of Driver Services.

• get a court decision resulting from civil action that relieves you of all liability.

• file an agreement to pay for damages or injuries on the installment plan. Forms are available from the Office of Driver Services.

• prove to the Office of Driver Services that you have paid for all damages or injuries, or that the other parties have paid you for your damages or injuries.

If you do not use one of the above methods to meet the requirements, your license can be suspended for one year from the date of the accident. Iowa Code section 321.20B Proof of security against liability - driving without liability coverage gives more information on what one has to do if they were found driving without insurance.

Even though you may be facing penalties for being without insurance at the time of the accident, since you were not at fault, normally you would be able to make a claim with the at-fault party's liability policy for your injuries and vehicle's damages. Check with their insurer on how you would go about making your claim.