It won't protect you from the insurance agencies; they demand a DL ID# and a VIN. And you are required by law to purchase from them.
And they're stautorily exempted from a whole boatload of privacy laws, like HIPAA.
They don't ask for license plates. At least through a camera tech like Flock, it isn't super easy to pick up a vin. So thinking this through more, at least having an insurance agency have your vin isn't as bad as having a flock & flock affiliated agency have your license plate - because if flock & flock affiliated dont have your vin they may never have the vin to find you via insurance company.
In California you can post a surety bond in lieu of insurance. I'm sure the same applies in other states with governance that is not captured by corporate interests.