Iowa’s Rising Insurance Costs: Why You Need an Independent Agent

Over the last few years, Iowans have watched their home and auto insurance premiums rise dramatically. From extreme weather events to inflation and tighter underwriting, the cost of personal lines insurance is climbing fast. Whether you're a homeowner, a driver—or both—now is the time to have a licensed independent agent working for you.

That’s where Foster Insurance comes in.

Weather Disasters Are Driving Up Home Insurance

Iowa is no stranger to unpredictable weather. The 2020 derecho and an uptick in hailstorms have caused insurers to reconsider their exposure here. In fact:

• In 2024, Iowa homeowners saw an average 14% increase in premiums.

• Iowa ranked 3rd nationally for highest home insurance rate jumps.

• Hail events more than doubled in recent years, driving up claims and repair costs.

Because of these ongoing risks, many carriers are either tightening policy terms or leaving Iowa altogether.

Auto Insurance Is on the Rise, Too

Iowa traditionally has some of the lowest auto insurance rates in the country—but that’s changing:

• Full coverage auto premiums in Iowa are projected to rise 4–8% in 2025.

• Supply chain delays and labor shortages mean repair costs are way up.

• Even drivers with clean records are seeing renewal increases of 20–40%.

What’s Causing the Increases?

Multiple factors are contributing to the rising cost of insurance:

• Severe weather (hail, wind, tornadoes, derechos) is happening more often and with greater intensity.

• Inflation is driving up the cost of labor, materials, and car parts.

• Reinsurance costs for insurance companies have spiked, and those expenses are passed along to you.

The result? Fewer companies offering coverage, shrinking options, and higher out-of-pocket costs.

Why Work With Foster Insurance?

The good news is—you’re not alone. Foster Insurance is a trusted, local independent insurance agency that can help you navigate these changes and find the right coverage at a competitive rate.

As an independent agent, Foster Insurance is not tied to just one company. That means they can:

• Shop multiple carriers on your behalf

• Help you understand policy changes and deductible options

• Tailor a solution based on your specific needs and risk profile

• Find discounts through bundling home & auto, loyalty programs, and more

  
  

Whether you're renewing your current policy or shopping for better protection, Foster Insurance offers personalized guidance from people who live and work right here in central Iowa.

Contact Us Today

Don’t face the changing insurance market alone. Let Foster Insurance help you stay protected without overpaying.

Phone: 515-832-5557 Address: 741 2nd St, Webster City, IA