If you fail to pay compulsory automobile insurance in time, you will be punished when you are inspected. According to the Regulations on Compulsory Traffic Insurance, the owners or managers of motor vehicles driving on roads in People's Republic of China (PRC) and China should pay compulsory traffic insurance. If the owner or manager of a motor vehicle fails to apply for compulsory insurance in accordance with the provisions, the traffic administrative department of the public security organ has the right to detain the motor vehicle after checking the vehicle, notify the owner or manager of the motor vehicle to apply for compulsory insurance in accordance with the provisions, and impose a fine of twice the insurance premium payable.

If the traffic control department finds that the motor vehicle is not covered by compulsory insurance according to the relevant regulations, it will detain the motor vehicle that is not covered by compulsory insurance, require the owner to be covered, and impose a fine of twice the insurance premium. If the owner reissues the compulsory insurance in time, he can take the insured insurance policy and insurance sign to get the motor vehicle.

If a motor vehicle driving on the road fails to place a compulsory insurance sign in accordance with the regulations, the traffic control department may detain the motor vehicle, notify the owner and ask him to provide the compulsory insurance sign or reissue the compulsory insurance sign, and may also impose a fine of more than 20 yuan and less than 200 yuan. If the owner provides the insurance mark of compulsory insurance or effectively completes the compulsory insurance procedures, he can get a motor vehicle.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.