Bills › 91st General Assembly
Relating to motor vehicle financial liability coverage, providing penalties, and including effective date provisions
Sponsored by the House Public Safety Committee
Topics:InsuranceTransportation
Same legislation: HSB 172
Where it is now
- Done: IntroducedFebruary 13, 2025
- Done: SubcommitteeFebruary 13, 2025
- Done: House committeeMarch 5, 2025
- Done: Passes the HouseMarch 25, 202591–6
- Stopped: Senate committeeDied when the General Assembly ended
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2026 session adjourned on May 3, 2026, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary Vehicle owners must prove they have insurance coverage when they register a car or renew their registration. If a driver is stopped without insurance or proof of insurance, a police officer can issue a citation, remove the license plates, or impound the vehicle. People who break these rules a second time within five years face more serious charges and potential arrest.1
Read the official explanation
This bill relates to motor vehicle financial liability coverage.20B at the time the vehicle is registered and each time the registration is renewed. At the time of application for registration of a motor vehicle, the owner is required to provide a copy of the proof of financial liability coverage card issued for the motor vehicle, a description of the coverage as noted on the card, or other documentation acceptable to the department of transportation (DOT). The DOT or county treasurer cannot register a motor vehicle or renew a registration in the absence of satisfactory proof that financial liability coverage is in effect for the vehicle. 20B. Under current law, a person driving a motor vehicle on a highway is required to have financial liability coverage in effect for the motor vehicle and have the proof of financial liability coverage card issued for the motor vehicle in the motor vehicle, unless specifically excepted. For a violation of these provisions, a peace officer is required to issue a warning memorandum; issue a citation; issue a citation and remove the motor vehicle’s license plates and registration receipt; or issue a citation, remove the motor vehicle’s license plates and registration receipt, and impound the motor vehicle, when the officer stops a driver whose vehicle is registered in Iowa. If the vehicle is not registered in Iowa and the driver is a nonresident, the peace officer must issue a warning memorandum or a citation. A person who does not have financial liability coverage in effect for the vehicle or who does not carry proof of such coverage in the vehicle commits a simple misdemeanor punishable as a scheduled violation. If in connection with a motor vehicle accident, the scheduled fine is $645; otherwise, the scheduled fine is $325. A fine collected must be submitted to the state court administrator and distributed percent to the victim compensation fund, percent to the county in which such fine is imposed, and percent to the general fund of the state.20B(1) within five years an aggravated misdemeanor. For the penalty enhancement, the bill does not distinguish between vehicles registered in Iowa, or not, or drivers who are residents of Iowa, or not. A peace officer is required to arrest the driver if the driver cannot provide proof of financial liability coverage and was previously convicted for the same violation within five years. A peace officer may remove the motor vehicle’s registration plates and registration receipt, or impound the motor vehicle, in which case associated procedures under current law apply. In accordance with current law, a person cited for a violation, including a person arrested for a second or subsequent violation under the bill, may provide proof that financial liability coverage was in effect at the time the person was stopped and the court must dismiss the citation or charge and assess costs to the person. An aggravated misdemeanor is punishable by confinement for no more than two years and a fine of at least $855 but not more than $8,540.8108. Financial liability coverage is generally required to be in effect for every motor vehicle driven on Iowa highways.18); a lienholder with a security interest in a motor vehicle that does not drive or move the vehicle; and motor vehicles owned by a motor vehicle dealer or wholesaler licensed pursuant to Code chapter 322.20B.
Changed since by amendments H-1166, H-1154; see Amendments.
Senate subcommittee
Named March 27, 2025. It hasn’t reported yet.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
Cost: up to $440,000 Compare with other bills
AI summary This bill requires vehicle owners to provide proof of insurance when registering or renewing a vehicle and increases fines for repeat driving without insurance offenses. It is estimated to increase revenues to the state General Fund, county general funds, the Victim Compensation Fund, the Juvenile Detention Fund, the Criminalistics Laboratory Fund, and the DARE Fund by approximately $1.0 million per year beginning in fiscal year 2026. The Department of Transportation will also have a one-time information technology cost of $440,000.3
Read the fiscal note
Description
House File 918 requires the owner of a motor vehicle to certify that financial liability coverage is in effect for the vehicle as required under Iowa Code section 321.20B at the time the vehicle is registered and each time the registration is renewed. A motor vehicle owner is required to provide a copy of the proof of financial liability coverage issued for the motor vehicle at the time of application for vehicle registration to the Department of Transportation (DOT). The DOT or county treasurer cannot register a motor vehicle or renew a registration in the absence of satisfactory proof that financial liability coverage is in effect for the vehicle. These provisions do not apply to motor vehicles excluded from the requirements of Iowa Code section 321.20B.
A person who does not have financial liability coverage in effect for the vehicle or who does not carry proof of such coverage in the vehicle commits a simple misdemeanor punishable as a scheduled fine. The Bill increases the fine amount for a second violation of driving without insurance to double the scheduled fine amount and triples the scheduled fine amount for a third or subsequent violation. Figure 1 shows the current fine, surcharge, and court costs and the second and third or subsequent violations under the Bill.
Figure 1 — Changes to fine amounts under HF 918 The Bill takes effect July 1, 2025, except for sections 1, 5, and 6 of the Bill requiring proof of financial liability at the time of registering or renewing a vehicle takes effect December 1, 2028.
Background
Under current law, a person driving a motor vehicle is required to have financial liability coverage in effect for the motor vehicle and have the proof of financial liability coverage card issued for the motor vehicle in the motor vehicle unless specifically excepted. A person who does not have financial liability coverage in effect for the vehicle or who does not carry proof of such coverage in the vehicle commits a simple misdemeanor punishable as a scheduled fine of $325 unless the vehicle is involved in a motor vehicle accident, in which case the scheduled fine is $645. If a driver who has received a citation for driving without insurance can provide proof to the clerk of court that insurance was in effect at the time of the stop, the charge will be dismissed, and the driver will be responsible for court costs.Second Citation Third Citation Penalty 325.00$ 650.00$ 975.00$ Surcharge (15.0%) 48.75 97.50 146.25 Court Cost 55.00 55.00 55.00 Total 428.75$ 802.50$ 1,176.25$
First Citation
In FY 2024, there were 16,671 convictions under Iowa Code section 321.20B. Of these convictions, 499 were for a second offense and 2,648 were for a third or subsequent offense under Iowa Code section 321.20B within the previous five years.
The Archon Registration and Titling System (ARTS) is a system used by the DOT for dealer plates and license renewals. The DOT is planning a three-year capital project with estimated costs of $20.0 million in FY 2026, FY 2027 and FY 2028.
Assumptions
- The fine distribution for proof of financial liability fines is 50.0% to the Victim Compensation Fund, 25.0% to the county general fund, and 25.0% to the State General Fund.
- The Crime Services Surcharge under Iowa Code section 911.1 is equal to 15.0% of the fine amount imposed and will be applied to the citation.
- Court costs are $55 and will be applied to the citation as well.
- The number of citations issued per year will remain constant at the FY 2024 amount.
- The collection rate for scheduled violations is estimated at 24.0% for citations issued for failure to show proof of liability with no accident and 18.0% for citations issued for failure to show proof of liability when involved in an accident.
- Approximately 20.0% of offenders with convictions under Iowa Code section 321.20B may have had a prior conviction within the previous five years. Of that number, approximately 17.0% may have had a third or subsequent violation.
- It is unknown how many of the convictions in FY 2024 occurred in connection with an accident, but it is assumed that 25.0% of the second and third offenses will have been involved in an accident.
- The DOT will have a one-time information technology (IT) expense of $440,000 to program the ARTS for the DOT and county treasurer’s offices to receive and retain proof of financial liability at the time of registration or renewal, which is included as part of the DOT IT upgrade.
Fiscal Impact
House File 918 will increase revenues to the General Fund, county general funds, the Victim Compensation Fund, the Juvenile Detention Fund, the Criminalistics Laboratory Fund, and the Drug Abuse Resistance Education (DARE) Fund by approximately $1.0 million per year beginning in FY 2026. Of this amount, the impact to the General Fund is approximately $235,000. The revenues will be distributed as displayed in Figure 2 and Figure 3. Additionally, the Bill will have a one-time IT cost of $440,000 for the DOT’s ARTS System. Figure 2 — Current Law vs. House File 918 Fine Revenues, No Accident Figure 3 — Current Law vs. House File 918 Fine Revenues, AccidentCurrent Law All Offenses 1st Offense 2nd Offense 3rd offense Citations 12,504 10,143 375 1,986
General Fund
Penalty Revenue 487,656$ 197,789$ 14,625$ 116,181$ Court Fee 165,053 133,888 4,950 26,215 Subtotal 652,709$ 331,676$ 19,575$ 142,396$
Surcharge Revenue
Juvenile Detention 67,297$ 54,590$ 54,590$ 32,066$ Victim Comp. 534,471 433,552 32,058 254,669 Crime Lab 29,259 23,735 1,755 13,942 DARE 2,926 2,373 176 1,394 Subtotal 633,953$ 514,250$ 88,578$ 302,071$
Other
County General Funds 243,828$ 197,789$ 14,625$ 116,181$ Grand Total 1,530,490$ 1,043,715$ 122,778$ 560,648$ House File 918Current Law All Offenses 1st Offense 2nd Offense 3rd offense Citations 4,167 3,381 124 662
General Fund
Penalty Revenue 241,894$ 98,134$ 7,198$ 57,644$ Court Fee 41,253 33,472 1,228 6,554 Subtotal 283,148$ 131,605$ 8,426$ 64,197$
Surcharge Revenue
Juvenile Detention 33,381$ 27,085$ 27,085$ 15,910$ Victim Comp. 265,116 215,109 15,778 126,355 Crime Lab 14,514 11,776 864 6,917 DARE 1,451 1,178 86 692 Subtotal 314,463$ 255,147$ 43,813$ 149,873$
Other
County General Funds 120,947$ 98,134$ 7,198$ 57,644$ Grand Total 718,557$ 484,886$ 59,437$ 271,715$ House File 918
Sources
- Department of Corrections
- Department of Management (DOM) Criminal Justice Planning
- Department of Transportation
- Driving Without Insurance, Criminal Penalty · April 30, 2025 · $440,000
- Driving Without Insurance, Criminal Penalty · March 24, 2025
Iowa Code it changes
Lobbying
1 for · 0 against · 6 undecided · Who →
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91st General Assembly