Car Impounded? $500 Fee for Some Starts Monday

By Chris Earl, Anchor/Reporter

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By Daren Sukhram

Story Created: Sep 30, 2009 at 4:40 PM CST

Story Updated: Sep 30, 2009 at 5:21 PM CST

CEDAR RAPIDS - The Cedar Rapids police want to tell drivers to have their insurance up to date or be ready to pay hundreds. A $500 fee will be added if police impound vehicles for operating while intoxicated, numerous criminal activities and even driving without insurance.

Todd Phillips operates ATC Pro Tow Recovery, a towing facility with the police contract on 76th Avenue SW, near the Eastern Iowa Airport. He says he is getting ready for more business. "A 30-40% increase in tows and storage impounds until people realize they need insurance," Phillips said.

The Cedar Rapids Police Department says it will enforce a code ordinance -- Section 61.137A -- allowing officers to seize and impound cars and trucks in certain criminal offenses.

Offenses included with the $500 fee.
- Operating While Intoxicated
- Driving With a Suspended, Revoked or Barred License
- Hit and Run
- Attempting to Elude
- Possession of a Controlled Substance
- Possession of Drug Paraphernalia
- Carrying Weapons
- Possession of a Firearm as a Felon
- Possession of an Offensive Weapon
- Reckless Use of a Firearm
- Intimidation With a Dangerous Weapon
- Failure to Post Security Against Liability (No Insurance)

"A large percentage of our in-custody arrests are these driving violations," Sgt. Joe Clark of the Cedar Rapids Police Department said.

With a $500 civil fee, the price tag to spring your vehicle could run much higher.

Phillips said it could be about $1,000. "They'll end up getting the insurance, paying the city fees, our fees are going to be minimal to what they have to pay everyone else," Phillips said. He also expects more vehicles to come through his fenced yard at Pro Tow -- but also cars and trucks to stay inside the yard longer -- at $10 a day for storage.

Police say they hope this $500 fee will force people to stay current on their insurance and also make sure others who may drive their vehicles are not involved in criminal activity. But is $500 - too much?

"This has been tested in the U.S. Circuit Court of Appeals and they've said $500 is not excessive," Sgt. Clark said.

In comparison with other nearby cities, Sergeant Clark said that Chicago charges a $1,000 fee in these cases. Police in Dubuque tell us they charge a $20 administrative fee for these situations. Waterloo and Iowa City do not charge on top of the violations and towing charges.

Cedar Rapids police did tell us on Wednesday that, if you have no insurance -- they will waive the $500 fee for the first offense -- but can still impound your car or truck.

As for all of this revenue, Sergeant Clark said any money from the civil fee will go back into the general fund to offset police expenses.

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