Why you need road traffic insurance tax?

The road traffic insurance tax is a tax on mandatory liability insurance for motor vehicles. It covers fines for uninsured motor vehicles collected by the Norwegian Motor insurer’s Bureau. In 2018, the government of Norway decided to replace the annual fee with a motor insurance fee which will be a part of the car insurance. Payment of the annual fee was to be done in a hefty invoice which many persons found illogical. Also, the use of the vehicle and the tax were not linked. This implies that even if the car is not used, the fee, in full, still have to be paid.

These issues are avoided and dealt with since the introduction of the road traffic insurance tax. The benefits of the new scheme far outweigh the old system since, for the government, it reduces administrative costs, and for the populace, it reduces the amount to be paid as tax. As a member of the masses with a vehicle, why do you need a road traffic insurance tax? The most important reason?

The law mandates it

This is the reason that should buoy all law-abiding citizens and foreigners to get this tax. Failure to comply with the tenets of the law may result in some steep penalties. To avoid such problems and issues, you will have to get the tax. The police force has also been empowered to deal with defaulters that have refused to pay. Read more about the Road traffic insurance tax here.

Many questions have been asked about the insurance tax. Some of them will be discussed here.

·        How is the tax calculated?

The amount is calculated from a daily rate multiplied by the number of days the vehicle is insured. The daily rates are adjusted yearly by the parliament, and these rates differ with the specifications of your car. Prices for a car and bus that runs on diesel without a filter is different from one that runs with it. That of a motorcycle is different from a tractor and so on.

·        When shall I pay the insurance tax?

You should pay the tax at the same time you pay the vehicle’s insurance. The insurance will be renewed every year, though it might not follow the calendar year.

·        Should I pay the tax if I do not use my vehicle?

The tax should be paid as long as there is liability insurance on the vehicle. If the car is not in use, you should deregister it and thus avoid paying the taxes.

·        What happens if the vehicle has been sold?

You no longer need insurance on the vehicle if it has been sold. The same day you sell the car should be the same day you terminate the insurance contract. The Norwegian Public Roads Administration should be well informed of the sale. If not, the seller will still be liable to the vehicle.

A visitor to Norway might avoid many of these issues by using platforms, like BookingMonkey, that offers rental car services or check other platforms and their reviews on Norskeanmeldelser, a trusted national review site in Norway