Actually, if police stop the driver and check VIN# to know it's not match to her name under insurance and license. She or he would get arrest for not change it. And your car would get be return or being hold at Police station.
That's not true, I've drove my mom's, my sister's car before and I've got pulled over when I was driving my mom's car, the officer asked me who's car this belongs to, I tell the officer it's my mother's.
They would only tow the car if the car has reported stolen, or if the driver doesn't have a valid driver license or insurance.