if the vehicle does not have liability coverage, it is technically illegal to drive that car on public roads. the government could care less if the car itself is covered by insurance or not, theyre just worried about if you, the driver, cause damage to someone else and cant cover the damage costs. the coverages on the car (comp/collision) is enforced by the lienholder not the government.. and the lienholder could care less if the other vehicle is covered or not, because they just want to make sure "their" vehicle is covered so they wont lose out on the loan.