Provides that to renew a vehicle license an applicant must provide proof of being insured under a motor vehicle liability policy with liability limits of at least the amounts provided in RCW 46.29.090, a self-insurance certificate as provided in RCW 46.29.630, or proof of coverage under a liability bond of at least the amounts provided in RCW 46.29.090.

Provides that whenever the motor vehicle liability insurance policy, self-insurance certificate, or liability bond required under this act is not renewed or is canceled, whether the nonrenewal or cancellation is initiated by the insured, the insurance company, or the bonding company, the registered owner of the vehicle or vehicles shall immediately notify the department. Failure to provide notice of nonrenewal or cancellation of a self-insurance certificate or liability bond under this provision is a misdemeanor.

Provides that if a driver fails to provide proof of financial responsibility or motor vehicle insurance when requested by a law enforcement officer, the law enforcement officer may issue a notice of traffic infraction and shall impound the vehicle if the person cited is also a registered owner of the vehicle. If the vehicle is impounded, a registered owner of the vehicle must: Pay any and all costs associated with impoundment, including costs for towing, removal, and storage of the vehicle; pay any other fees and fines incurred; and provide proof of financial responsibility or motor vehicle insurance before the vehicle can be redeemed.