"My daughter recently borrowed a car, assuming it had valid insurance. She was stopped at a safety check, only to discover the insurance expired. She has been told that if she doesn't bring in proof of insurance, her license can be suspended. She doesn't own a car! How can we prove a negative???"
There are several options for your daughter. First, if the owner of the vehicle had renewed the insurance and only the card was expired, She should get a copy of the renewed insurance card covering the date she was stopped, and take that in to court to show the Judge. If the Insurance had truly lapsed, (not just the card) your daughter should go before the Judge and explain her situation fully. If you have family insurance that would have covered her while driving another vehicle, she could take a copy of that to show the Judge. Insurance companies will also sell a policy that covers only the individual in any vehicle they drive. I don't know the cost of such a policy, but it is bound to be less expensive than the possible $500 fine. While I can't give legal advice, I would think that your daughter might be best to appear on the designated court date and explain the entire situation to the Judge. He may be understanding of the plight she is in, and give her a course of action to take to avoid being found guilty of the charge.