• Road tax and insurance not tally

    Posted on October 15, 2014 by in Insurance tip

    It is a common problem where your road tax expiring date and your insurance coverage date does not tally.  This usually happen when you purchase a used car.  When purchasing a used car, you will need to purchase a new car insurance, which will be minimum 1 year, but the used car’s road tax be only be expiring 8 month later.  What will happen?

    Let’s us assume all these take place in 15 January, so, your car insurance will only be expiring next year 14 January and your car road tax is expiring on 10 August.  Come 10 August, you will have problem as you cannot renew your road tax for 1 year, because there will be period where there will be no coverage (15 January – 10 August), similarly, you cannot renew your road tax for 6 month, because there will also be a lapse of coverage from 15 January to 10 February.

    In this case, you will need to do a coverage extension, seek your insurance agent’s help with an endorsement to extend your existing coverage from 14 January till 10 February.  Once the extension coverage period endorsement has been done to your existing policy, you can then proceed to renew your car road tax for 6 month period.  Making your future road tax and insurance expiring date to 10 February.  From then onward, you will not have the problem of road tax and insurance not being tally any more.

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