Q&A about the motor insurance tax

From 2018, the annual road tax will be replaced by a motor insurance tax. This tax is collected by the insurance companies on behalf of the authorities. The tax burden amounts to the same, but will be paid at the same time as the insurance premium of the vehicle. The payment can be distributed throughout the year.

The motor insurance tax applies to all registered vehicles below 7 500 kilos that also pays liability insurance (motor insurance). For heavier vehicles, the weight-bearing tax is still required by the Norwegian Tax Administration.

The amount is calculated from a daily rate multiplied by the number of days the vehicle is insured.

In the table below you will find the daily rates for the motor insurance tax. The rates are adjusted yearly by Parliament. 

The motor insurance tax shall be paid at the same time as the insurance on the vehicle, and is thus distributed on as many terms as the liability insurance (traffic insurance) is paid: monthly, quarterly, half year or full year.

Your insurance will normally be renewed each year, but will not follow the calendar year. When you renew an insurance with effect from 1^st of March, the motor insurance tax that you pay from this date will be the new rate for this year.

For vehicles with a maximum authorized weight of 7500 kg or more, you must pay weight-bearing tax. This fee is still required by the Tax Administration. You will not pay motor insurance tax for these vehicles.

You shall pay motor insurance tax from 2018 at the same time as your mandatory liability insurance (motor insurance).

Trailers or caravans (towed trailers) are not defined as motor vehicles and do not require mandatory liability insurance (motor insurance), and therefore no motor insurance tax.

You shall pay motor insurance tax as long as you have liability insurance (traffic insurance) on your vehicle. You are obliged to have liability insurance if you have a vehicle. If you do not use the vehicle, you can deregistrate the vehicle and thus avoid paying liability insurance and motor insurance tax. However, you may want fire and theft insurance.

If the vehicle is only used parts of the year, it must be deregistered for the time it is not used to avoid insurance requirements. The license plates are stored free of costs at the traffic station for up to six months. 

The motor insurance tax must be paid together with the insurance. If you have a joint invoice for all vehicles, motor insurance tax will be paid at the same time for these vehicles.

If the vehicle is sold, you no longer need insurance on the vehicle. You must therefore ensure that the insurance has been terminated the same day you sold it. Since you no longer have insurance, you do not have to pay motor insurance tax either. Please note that new owner must get the liability insurance (motor insurance) and pay motor insurance tax.

It is important that both the seller and the buyer sign and deliver the sales notice to the Norwegian Public Roads Administration. If the sales notice is not properly completed, the seller will still be responsible for the vehicle and all future requirements related to the vehicle will go to the seller.

If the vehicle is deregistered (the signs are delivered to the Norwegian Public Roads Administration), you do not need liability insurance for the vehicle. You’ll pay motor insurance tax until the day you cancel the liability insurance.

You are not required to pay mandatory motor insurance (MTPL) nor motor insurance tax for wrecked vehicles. Please note that in order to not be liable for insurance and tax claims, the Norwegian Public Roads Administration must have registered that the vehicle is wrecked.

When your vehicle is reported stolen in the police systems, you as an insured will not pay insurance until it is reported to be recovered. Since the insurance is terminated by theft and your insurance company takes over the liability, you will also not pay the motor insurance tax for the period the vehicle is reported stolen.

If you export the vehicle, you must report it to the Norwegian Public Roads Administration, and ensure that you do not have a Norwegian motor insurance. In this event you no longer have to pay the motor insurance tax.

Vehicles that become 30 years old in 2018 are considered as veterans vehicles as of 1.1.2018. This means that you will pay motor insurance tax as of 1.1.2018 for veterans. Today, this rate is at a lower level than for diesel and petrol-driven vehicles. Contact your insurance company if you have been asked for a higher motor insurance tax.

The motor insurance tax will follow the insurance company. If you change company, the motor insurance tax and insurance will stop at the old company and start running at the new one. Please note that the motor insurance tax is the same regardless which insurance company you use.

If you have paid insurance and motor insurance tax for a term and terminate your insurance before the end of the term, the insurance company will repay the overpaid insurance premium and motor insurance tax.

You will only pay motor insurance tax for the days you pay the insurance premium.

If you do not agree which category your vehicle is in, you must contact the Norwegian Public Roads Administration. Insurance companies base their collection of motor insurance tax on information registered in the motor vehicle register. It is the Norwegian Public Roads Administration which maintains this information.

The motor insurance tax is a tax and does not affect bonus or insurance premium. This tax is payed regardless of how much you pay in the insurance premium. The motor insurance tax depends on the type of vehicle you have, such as a petrol-powered car or an electric car. The motor insurance tax will also be the same regardless of mileage, just as the annual road tax was earlier. 

If you do not pay the insurance premium or motor insurance tax, the insurance company will send a reminder, cancel the insurance and send a debt collection request. In practice, this means that the car will be deregistrated in a roadside check.