IA HSB172

Second or subsequent violation of motor vehicle financial liability coverage (proof of insurance) requirements within a five-year period is elevated from a simple misdemeanor to a class "D" felony, punishable by up to 5 years in prison and fines between $1,025 and $10,245

Peace officers are required to arrest drivers who cannot provide proof of financial liability coverage if the driver has a prior conviction for the same violation within the previous five years

Officers may remove registration plates and receipts or impound the vehicle of a driver arrested for a second or subsequent violation

First-time violations remain simple misdemeanors with scheduled fines of $325, or $645 if connected to a motor vehicle accident, with fines distributed to the victim compensation fund (50%), county (25%), and state general fund (25%)

Charges may be dismissed if the cited driver provides proof to the court that valid financial liability coverage was actually in effect at the time of the traffic stop, though court costs are still assessed