QUICK ANSWER
Yes, the fee still applies. The insurance requirement is tied to whether the vehicle is registered as active in the vehicle register, not to whether it's actually drivable. A missing engine, sitting at a repair shop, or having been in an accident doesn't remove the requirement – only an off road notification for the vehicle does.
A common reaction is: the car couldn't even be driven, so why would it need insurance? Unfortunately, the law doesn't make that distinction.
Why the requirement applies even to a car that can't be driven
The Traffic Damage Act requires insurance for every vehicle registered as active, regardless of its condition. The reasoning is that even a stationary vehicle can cause damage – for example by rolling away, catching fire during a repair, or being damaged and damaging others during towing or transport.
TFF has no way to inspect or judge a vehicle's condition. The only thing it goes by is binary: is the vehicle listed as active or off the road. If it's active, it needs insurance, whatever state the engine is in.
What you can do
If the vehicle is going to sit unused for a while, for example at a garage awaiting a major repair or a part, make an off road notification for it with the Swedish Transport Agency. It's free, done through the app or e-service, and stops both the insurance requirement and the vehicle tax.
If the vehicle has already been active and uninsured for a period: make an off road notification for it now to stop new fee days. The fee for the period that's already passed stands, since an off road notification can't be backdated.
Sources: Swedish Transport Agency, making an off road notification. Traffic Damage Act (1975:1410) §2. Last checked: 2026-09-21.