Road Tax Regulations to Consider When You Buy Car Insurance Online

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For any individual, their car is one of their most prized possessions. But the responsibility towards the car and everyone else on the road doesn’t end with driving safely or purchasing a suitable car insurance policy. You must also abide by the state tax laws basis the city you’re living in, over and above the tax laws imposed by the central Government. Each Indian state has different rules and regulations for charging the road tax, and because of the varying tax percentages levied by various states, the overall tax amount can be different for all individuals. 

As per the Central Motor Vehicles Act, if a car is being used for more than a year, then it is compulsory to pay the whole amount of road tax at once. Following are some vital road tax elements to keep in mind when you buy car insurance online as you would need to pay the road tax post purchasing suitable insurance:

  1. The major documents required to pay road tax are your car’s Registration Certificate (RC), a valid insurance policy document, personal ID and Address proof and your car’s purchase invoice. 
  2. The amount of road tax differs from state to state and is calculated based on the ex-showroom price of your car. It is also calculated depending on some significant factors. In fact, the premium amount for your insurance policy also depends on these elements. These factors are your car’s engine capacity, seating capacity, age, and weight. 
  3. You’re due to pay your road tax at the time you’re getting your vehicle registered. Basis your state of residency, you’ll be liable to pay the tax either annually or for a lifetime. 
  4. In case you have bought your car in one state and have even paid a lifetime road tax but you are now shifting to another state, you will have to get a NOC from your RTO and re-register it in the new state, and you will be required to pay the road tax again.

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The car dealer pays the initial road tax amount, whereas you will pay the rest. You can pay the remaining road tax either through offline mediums or online mediums. For online payment, you can use the following procedure through the Vahan portal:

  • Visit    
  • Under Online Services – Go to Vehicle Related Services
  • Select your state and RTO
  • Select the required service, enter the details and make the payment.

Whereas for offline payment, you’ll have to go to the RTO, submit the road tax renewal form and then pay the tax amount. The only downside to offline payment is that it’s very time and energy-consuming.          

Now that you know the fundamental aspects to keep in mind and consider when paying road tax and purchasing insurance, you must ensure that you pick the insurance that best fits your needs. Click on the link to learn more about the car insurance policy Chola MS offers for the comprehensive protection of your dream car. 

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