Here in Texas, the penalty for driving without a license is less than driving with no insurance. In Austin, hit and runs or no insurance is the norm for more than 50% of the wrecks around here (from one insurance statistic I read.)
San Antonio is proactive. If a vehicle has no insurance, it gets towed and impounded on the spot. No ifs, ands, or buts.
I probably will be accused of insanity here, but I have wondered about a fuel tax that would be used for auto insurance. Yes, it would be a tax, but it would likely be cheaper overall than what we pay now for auto insurance in the long run. This also gets rid of the issue of uninsured motorists completely.