1. If there is a traffic accident, the owner needs to pay the claim amount of compulsory automobile insurance by himself;
2. The annual inspection of vehicles will not be accepted;
3. If it is discovered by the law enforcement traffic police, it will be punished (the punishment standards vary from place to place). Provisions on punishment:
Article 98 of the Road Traffic Safety Law of the People's Republic of China stipulates that if the owner or manager of a motor vehicle fails to take out compulsory motor vehicle third-party liability insurance in accordance with the provisions of the state, the traffic administrative department of the public security organ shall detain the vehicle until it is insured in accordance with the provisions, and impose a fine of twice the minimum liability limit payable in accordance with the provisions.
Article 40 of the Regulations on Compulsory Liability Insurance for Motor Vehicle Traffic Accidents stipulates that if no insurance sign is placed on the motor vehicle driving on the road, the traffic administrative department of the public security organ shall detain the motor vehicle, notify the parties to provide the insurance sign or go through the corresponding formalities, and may impose a warning or a fine of more than 20 yuan and less than 200 yuan. If the parties provide insurance signs or go through corresponding formalities, they shall return the motor vehicle in time.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.