Image via Flickr user Robert Scott

According to Land Transport Authority (LTA), “private car owners are not allowed to rent out their cars through rental companies as it is illegal for both the car owner and the company to allow a private car to be used without proper insurance coverage”.

However, non-car owners may choose to hire a private vehicle if they want to through the Private Car Rental Scheme. It is a scheme that allows non-car owners to have access to private transport during public holidays and weekends. For weekends, it will be from Friday 7pm to the following Monday, 7am. As for public holidays, it will be from 7pm on the eve of the public holiday to 7am on the first working day following the public holiday.

Under the Private Car Rental Scheme, the car owners are responsible for providing adequate insurance coverage for the period of the rental. Which means that additional insurance for car rental must be purchase during this period. Besides that, the car must be registered under the name of a private individual. Company cars are not allowed. In addition, the hirer must also meet the age and experience criteria specified in the insurance policy.

As for the penalties of driving or renting out an illegal rental car, there will be a maximum penalty fine of $1,000. Imprisonment of not more than three months. Risk of a driving ban up to 12 months. Unlimited liability claims as you are not covered by any insurance.

How to identify legal rental cars in Singapore?

A road tax disc printed “PASSENGER (PRIVATE)” is only meant for private use only.

A road tax disc printed “MOTORCAR” is a legal rental car registered with LTA.

You can easily identify the difference between legal and illegal rental vehicles by just looking at the road tax disc. A legal rental vehicle will bear a print “MOTORCAR”, where as a private passenger car will show “PASSENGER (PRIVATE)”. Please beware of illegal rental vehicles to avoid any unwanted risks, fines and claims.

By Joanne

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