[MrPrena]

I believe student (full time) are only people who can use different state license plate and live there more than 6mo at a time.

I won't go as far as insurance fraud, but it is true that insurance might deny the major claims. (People usually do not have actuary algorithm software to calculate which state is cheaper or expensive).

There are massive amount of "rich folks" who has lots of property in different states, and stays longer than they claims to be a resident of that state, but they get away with it often.
For ex: WA resident staying at Jacksonhole Wyoming or Eagle Colorado for more than 6mo, and still claims to be WA resident.

The person who got impounded most likely have to pay fines, and get the car back from impound lot at extra lot charges.

This law is pain in the ass for people who has more than 1 properties in different states.
Sadly, my mom had to change the license plate on a same vehicle 6times in 4years. (around 2002-2006) She wanted to live in CA for 8mo, and CO for a year after.