Can’t renew your road tax?
It’s probably your insurance policy

Despite Being Separate, Road Tax Renewal Requires A Sufficiently Long Enough Insurance Coverage
– Especially If You’re The Second Owner Of The Vehicle.

You might be asking yourself: Why can’t I renew my road tax?

You are definitely asking yourself this if you see this error text:

Can’t renew road tax? It’s probably your insurance policy.

The most likely reason is a misalignment between the road tax period and vehicle insurance policy coverage.

Misalignment

First, a few absolutes:

  • Road tax is only purchasable in six-month or 12-month periods.
  • New insurance policies are purchasable in 12-month (or more) periods.
  • Online Road tax can be renewed online after you have a digitally confirmed insurance policy.
  • You need both road tax and vehicle insurance to legally drive your vehicle in Singapore. It is illegal to drive without adequate insurance.

This issue arises most commonly if you have purchased a pre-owned vehicle. This vehicle will most likely come with some period of road tax remaining (which the former owner purchased). Unlike road tax, insurance policies do not transfer along with the vehicle; and you will have to purchase a new insurance policy for yourself. Thus, this new policy and the old road tax will very likely not expire on the same day of the year – this is the misalignment, or policy “shortfall”.

However, this won’t be an issue until the period where you need to renew your road tax.

Realignment of insurance and road tax

  • The graphic above shows road tax and insurance might suffer from a term disconnect. Owner 2 (you) purchases a second-hand car from Owner 1 in April, with a new insurance policy for the vehicle. Road tax for the vehicle, which Owner 1 purchased, still has eight-months left before expiry the subsequent January.
  • Sometime later, Owner 2 tries to renew the road tax but is informed of insufficient insurance coverage, as there is not enough to coincide with six-months’ worth of road tax. There is a three-month shortfall between insurance and road tax.
  • Thus, Owner 2 must extend his insurance policy by two months, in order to create a collective six-month insurance period to cover a new six-month road tax purchase. This policy extension will cover the shortfall.
  • The LTA system will automatically update and recognise Owner 2’s insurance policy extension. Owner 2 can then purchase six-month’s of road tax, which will re-align his policy and road tax.

In a nutshell, g&m will help to extend your vehicle insurance policy to create sufficient runway for Owner 2 to buy the minimum six-months of road tax (alternatively, you could also buy one-year).

Give us a call or a send us an email, and we will extend your policy for the time required (the cost of which will be pro-rated to your current premium). Give us three working days, after which you can go back to the LTA portal and renew your vehicle insurance.