What is the difference between compulsory motor insurance (CMI) and annual vehicle tax? 2 things every car owner needs to know

What is the difference between compulsory motor insurance (CMI) and annual vehicle tax? 2 things every car owner needs to know

Many people lump them together as “renewing the registration”, but in fact compulsory motor insurance (CMI) and annual vehicle tax are two separate things. They do different jobs, and a registered vehicle in everyday use cannot do without either of them.

The shortest answer is:

• CMI is compulsory insurance that covers death and bodily injury to road accident victims.
• Annual vehicle tax is a tax the owner must pay every year to keep the vehicle's registration status lawful.

And there is one very important link between them: before paying the annual vehicle tax, the owner must have CMI that is still in force.

1. What is compulsory motor insurance (CMI)?

When people talk about a car's “por ror bor”, they mean an insurance policy under the Road Victims Protection Act 1992. It is compulsory insurance that an owner who uses a vehicle, or keeps one for use, must have by law, unless the vehicle falls under a legal exemption.

The purpose of CMI is not to repair cars but to help road accident victims get medical expenses and compensation for injury, dismemberment, disability or death, under set rules and limits.

Who does CMI cover?

A road accident victim may be the driver, a passenger, a pedestrian or anyone else harmed by a vehicle. The rights and amounts they receive depend on the facts, liability and the conditions set by law.

Key CMI limits you should know

Under the standard policy form published by the OIC (Office of Insurance Commission), the key limits are:

Some of these amounts, when combined, are subject to an overall cap under the policy. And if the driver of the insured vehicle is the party at fault, they may receive only the initial compensation under the rules, so you should have the insurer or broker check the facts case by case.

Limits and conditions may be amended by law or by order of the Registrar, so always check the policy that was in force on the date of the incident.

What does CMI not cover?

This is something car owners often misunderstand. CMI does not cover:

• Repairs to your own car
• Repairs to the other party's car or property
• Theft, fire or flood
• Damage to the car from a collision

For these, you need to look at voluntary motor insurance, such as Class 1, Class 2+, Class 3+ or another class, according to the scope and conditions of each plan.

If I already have Class 1 insurance, do I still need CMI?

You still need it, because voluntary motor insurance cannot replace CMI. The two do different jobs and may work together when an accident happens.

If the owner does not arrange CMI, or a vehicle without CMI is used, the law sets a fine of up to THB 10,000 where the elements of the offence are met, and you will not have the evidence needed to pay the annual vehicle tax.

2. What is annual vehicle tax?

Annual vehicle tax is the owner's duty under the Motor Vehicle Act and must be paid every year. Once it is paid, you receive the annual tax sticker, which many people call the “round tax disc”, even though the sticker itself is no longer round.

Vehicle tax is not insurance and pays no compensation when an accident happens; it is what keeps the vehicle's registration status valid so that it can be used.

What do you need to renew your vehicle tax?

In general, you should have ready:

1. Proof of CMI that is in force
2. The vehicle's details or registration book, depending on the channel you use
3. A vehicle inspection certificate, if your vehicle is required to be inspected
4. The tax and fees for your type of vehicle

Owners can pay the tax up to 90 days before the tax expiry date, so there is no need to wait until the last day.

At what age must a vehicle be inspected before the tax is renewed?

For vehicles registered for general use:

• Private passenger cars, passenger cars carrying more than 7 persons and private pickups / light trucks must be inspected under the rules once they are 7 years old or more.
• Motorcycles must be inspected under the rules once they are 5 years old or more.

A vehicle's age is counted from the date of first registration to the annual tax expiry date. Check the conditions with the Department of Land Transport (DLT) or a private vehicle inspection centre before you go ahead.

What happens if you let your vehicle tax lapse?

• If you pay late, you are charged a surcharge of 1% of the tax due for each month or part of a month.
• A vehicle with tax overdue for more than 1 year may have to pass an inspection first, under DLT conditions.
• If the tax goes unpaid for 3 consecutive years, the vehicle's registration is suspended, and you must put things right with the DLT before using the vehicle again.

So letting your tax lapse does not just cost you extra; it also makes getting the vehicle back on the road more complicated.

How do CMI and annual vehicle tax differ?

An easy way to remember it: CMI looks after “people”, while annual tax looks after “the vehicle's status”, and neither of them replaces voluntary motor insurance, which covers liability for property or damage to your own car according to the plan you choose.

Checklist before the due date

• Check your CMI end date and your tax expiry date separately, because the two dates do not always match.
• Check that the registration number, chassis number, vehicle type and vehicle use in the policy are correct.
• If your vehicle has reached the age threshold, have it inspected before renewing the tax.
• Do not wait until the last day; you can do it up to 90 days in advance.
• Keep your policy, receipts and proof of payment on your phone so you can find them easily when needed.
• Also review whether CMI alone is enough for your vehicle's risks and the way you use it.

What can Prakanthai.com check for you?

Before you renew, you can send your vehicle details, due dates and how you use the vehicle to the Prakanthai.com team for an initial check. We check the details for your CMI, explain the cover, and compare voluntary motor insurance from multiple insurers by promotional price, cover and conditions that suit how you actually use the vehicle.

If a plan is good value, we will tell you straight. If there are conditions you should know about, we will explain them before you decide.

• Tel: +66 2 459 2223
• LINE Official: @prakanthai
• Website: www.prakanthai.com

Prakanthai.com
Non-life insurance broker, licence no. 5104000004

Frequently asked questions

My CMI has expired but my Class 1 insurance has not. Can I still use the car?

You should not use the car until you have CMI in force, because Class 1 insurance is voluntary and cannot take the place of CMI's legal role.

Does CMI cover repairs to the other party's car?

No, it does not. CMI focuses on death and bodily injury; repairs to vehicles or property depend on voluntary motor insurance and liability for the accident.

Can I renew my vehicle tax without CMI?

No. The owner must have proof of compulsory insurance in force in order to pay the annual vehicle tax.

Do CMI and vehicle tax expire on the same day?

Not necessarily. Check the end date in your CMI policy and the expiry date on your tax sticker separately.

Do electric vehicles (EVs) need CMI and annual vehicle tax?

Electric vehicles registered for general use still need CMI and annual tax, just like other vehicles, but the tax rates and details may differ depending on the vehicle type and the measures in effect at the time.

References

• Road Victims Protection Act 1992, as amended, sections 7, 11, 37 and 39
• Road victims protection insurance policy form 2025 — OIC
• CMI requirements for paying annual vehicle tax — Department of Land Transport
• Vehicle requirements for paying annual tax — Department of Land Transport
• Regulations on vehicle registration and tax procedures under the Motor Vehicle Act, 2019 — Department of Land Transport