Not to disagree but, I have never in my life heard of anyone getting a letter from DOT or DMV about not having Insurance or have I heard of a cop knowing you don't have insurence by running your plate. If your lien holder doesn't find out your good, the cops will never know untill you get pulled over or get into an accident.
Also how could a Insurance cmpany notify DOt or DMV about you dropping your coverage, it your right to drop it at any time to change service providers and you owe no responsibility to the previous provider to inform them you have/will be using somebody else. If that were the way it was I would still have my last insurance company saying I don't have coverage because I got tired of their way of doing busness and paid my bill then just stopped taking there calls
"If you’re going to lead, then lead. If you’re going to follow, get the hell out of my way"