That's not 100% accurate. When you go to DMV you sign a form stating "you will maintain insurance". That's it.You cannot drive down a highway or an interstate where I live without insurance or registration. The police now have technology that reads the plate and cross checks for insurance, registration etc.
The police are using plate scanners yes and they flag all kinds of things like outstanding warrants etc.... but they are not cross-checking with Geico and the likes databases.
If you have a link the states otherwise, I'd like to read that.