The law requires all Kentucky insurance companies to notify the Transportation Cabinet monthly of those policies that have lapsed.
If you still haven't obtained liability insurance at the end of three months, you will be notified by the state.
Cabinet Official, Kiersten Jaggers says, "Once the information gets to the state, they will compare it to the vehicle registrations, turn around and contact you with a letter basically telling you if you don't get liability insurance your registration will be cancelled."
If a person's name comes up three different times for not having car insurance, their name will be sent to the county attorney for prosecution in district court.
Jaggers says state lawmakers put the law in effect to put an end to those trying to beat the system.
"They felt there were far too many people who would go and get their insurance, required paperwork, and they'd cancel it. Then they'd go a whole year round and when it came time to get your car registered, they do the same thing."
The new law has made some people rush to insurance agencies to get a policy.
But Jaggers says that there are just as many who don't even know the law exists.