proof of insurance (Financial Responsibility)
What is the law?
If you are involved in an accident as either the driver or owner of a vehicle, or if your license has been suspended or revoked, you need to prove that you can cover the costs. Iowa has a law called the Financial and Safety Responsibility Act. It's there to make sure that even if you don't have insurance, you can still pay for any damage you cause while driving. It also keeps you safe from drivers who don't have enough money to cover damages. It does this by:
- Taking away the ability for someone to drive and/or register their vehicle if they can't prove they can pay for the damage caused by an accident right away.
- Requiring anyone whose driver's license has been taken away because of a conviction, unpaid fines, or breaking OWI laws to prove they can pay future damages or injuries that the driver may cause.
Financial responsibility after an accident
Even if it's not your fault, you have to report any accident to the Iowa DOT within 72 hours if it causes injury, death, or property damage over $1,500. However, you will not be required to file a personal accident report if the accident was investigated by a law enforcement agency and the officer filed a report.
If you cause injury or property damage exceeding $1,500 to the other party, you must show proof of insurance. Otherwise, your license will be suspended.
If you received a letter from the Iowa DOT because we did not have proof of insurance at the time of the accident, you can submit proof of insurance to the Iowa DOT by providing the:
- Insurance company’s name (not agent).
- Policy number.
- Policyholder.
- Insurance contact name.
- Insurance contact phone number.
- Accident number that is supplied on the notice you received from the Iowa DOT.
If you do not submit proof of insurance, your driving and/or registration privileges will be suspended.
If you own the vehicle involved in an accident, whether you were driving or not, you still have to show proof of insurance. If you can't, you'll lose your registration privileges. The person who was driving your vehicle also has to provide proof of insurance, or they'll lose their driving privileges.
Proof of insurance after an accident is not needed in these cases:
- Your vehicle was legally stopped, standing, or parked.
- No damage occurred to any person or property other than yourself.
- Your vehicle was driven without your permission. As the owner, you will need to submit documentation that the vehicle was being operated without your permission at the time of the accident. Acceptable documentation includes one the following:
- A police report indicating the vehicle was stolen.
- Proof of the driver’s conviction of operating the vehicle without the owner’s consent.
- A witness affidavit that the driver had been denied use of the vehicle.
I received a notice that my license/registration privileges are going to be suspended.
How do I prevent this or get my license back?
Provide the Iowa DOT one of the following:
- Provide proof that you had insurance at the time of the accident. Submit proof of insurance.
- Post a security deposit (the amount is listed on the official notice you received from the Iowa DOT) by bringing it to a DMV or mailing a bank draft, money order, certified check, or corporate surety bond to: PO Box 9204, Des Moines, Iowa 50306-9204
- Provide a release by completing the General Release form and mailing it to: PO Box 9204, Des Moines, Iowa 50306-9204
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Provide an agreement to pay the other party by mailing it to: PO Box 9204, Des Moines, Iowa 50306-9204
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Provide proof that you sold the vehicle before the accident by mailing the Affidavit of Seller form to: PO Box 9204, Des Moines, Iowa 50306-9204
Check the status or see if you are eligible to reinstate your driver's license.
How do I get my driver's license back if it was suspended?
Once you have provided one of the options above, your license can be reinstated.
To reinstate your license, you will need to schedule an appointment to come into the DMV to reinstate your privileges, pay a $20 reinstatement fee and a $10 duplicate license fee.
If it has been more than one year since you have had a valid driver’s license, you will need to pass a knowledge test and a driving test before you can reinstate your license.
If you are not sure if your license is suspended, you can view your driving record online to check the status.