So it's not illegal to have an uninsured vehicle on private party, but what about the obvious fact that it was driven there in the first place? I would imagine if somebody's car just got hit and you told them you don't have insurance and they're only getting it covered if they have you pay out of pocket, I imagine they may be quite irate with the situation and call the police to file the report. Sounds like a good way to be wasting an officers time so I'm just surprised Aaron, the officer, made that suggestion.

Well I guess there is no deductible when we damage a vehicle (that's what gf says insurance told her) so I just told the gf to save that automatic $1000 and put it towards a new policy or the increase if we get hit but kept on the policy (hopefully the latter).

I would never trust paying out of pocket once insurance has been notified. Sounds like a good way to take both a hit on the policy and get screwed out of tons of money.