If the car is impounded, under the proposal, the driver would be responsible for all towing and storage costs, and an administrative fee of $100. The driver would have 30 days to retrieve the car, or see it auctioned off following a hearing.

The state reports more than 600,000 uninsured drivers are currently on the road. Mr. McGreevey's plan also calls for raising the penalty for failure to display an insurance indentification card from $100 to $150. The proposal calls for $25 of this fine to be dedicated to the Uninsured Motorist Prevention Fund, which maintains the state's Department of Motor Vehicles' database of automobile insurance information.

"This proposal will introduce fairness to a system that has allowed uninsured drivers to get off the hook," Mr. McGreevey said in a statement.

The proposal is designed to put uninsured drivers on notice that if they do not conform to the law they could be subject to stiff penalties, said Peter Hartt, a spokesman for the New Jersey Department of Banking and Insurance. He said the governor plans to have the plan introduced as legislation when the state legislature reconvenes in the fall.