Things To Take Note
When Renting Out Your Private Vehicle
|If you have too many cars spending time in your private
parking space, or if you don’t use your vehicle as often you
should be, then you have the option to rent out your private
vehicle. Private car rental has been gaining popularity
across the globe, including Singapore, and there are no
reasons why you should not be considering the option. But
like everything else, there are caveats attached to private
vehicle rental as well and the following are the things to
take note when renting out your private vehicle.
Rental Car Laws
For starters, renting out a private car for commercial
purpose or through a car rental firm is not legal. This is
because private and commercial vehicles have varying
insurance coverage and stipulations, and when a private car
is being rented out for the public, it violates its
insurance clause. As per Singapore laws, private cars can be
rented out only between 7 pm (Fridays) and 7 am (Mondays).
As per this scheme, you (the car owner) is responsible for
the vehicle’s insurance coverage during the rental period.
If a private vehicle is rented out against the law, you’ll
be levied a maximum fine of $1000. There’s also the
possibilities of imprisonment for three months (maximum).
You also risk getting banned from driving for almost a year.
A legal rental car would usually bear the word “MOTORCAR” on
its road tax disc.
If a private vehicle is used for commercial use sans proper
legal formalities and documentation, then the insurance
cover for the car will be nullified. In other words, the
insurance firm would then have the right for not
underwriting any risk and would immediately terminate the
insurance. As a result of this, you would end up facing
unlimited liability claims. In other words, you would be
invariably paying out of your own pockets for injuries and
damages resulting from the accidents.
If you want to rent out a private car for public use, get in
touch with your insurer for getting an appropriate insurance
coverage done. Most Singaporean auto insurers are taking
note of the rising private car rental trend and are making
alterations to their coverage policies accordingly.
Therefore, keeping them in the know about your commercial
plans is recommended.
As per Singapore laws, third party insurance is the least
coverage needed for a commercial car. This limited
protection covers property damage, injury or death to
others. Comprehensive insurance coverage, on the other hand,
offers complete protection for you, your passengers and your
Learn More About the Renter
Despite of all the liability cover, renting your private
vehicle to a complete stranger is always a risky
proposition. No, we are not talking about theft, but the
kind of treatment levied out to your vehicle while it’s in
service is what needs to be looked into. You may baby your
car and look out for each and every pothole while driving.
The renter, however, may not necessarily have those things
on his mind. In fact, strangers who don’t own a car
themselves are least likely to avoid the potholes.
Therefore, it always pays to learn more about the renter and
his driving skills.
Look for his driving license and ensure it is the same
individual who got in touch with you for the rental. That
said, you cannot rule out the renter tossing the keys to his
friend who wants to transport a few hundred kilograms of
cocaine. Therefore, carry out your due diligence. Moreover,
insurance cover is not generally comprehensive for rented
cars. The car rental firm would offer comprehensive coverage
for the whole period while the car is listed, but specific
repairs may not be reimbursed. For instance, if the car
renter inflicts mechanical damage upon the car – such as a
gearbox wreckage – the damage won’t be covered.
Now this rule may vary across rental services. Even if you
are putting the car out for rental by self and not through a
car rental service, you’ll have to ensure the car is not too
old. Typically, cars older than 10 years don’t see too many
renters. In fact, there are some renters who don’t prefer
renting in a vehicle that’s five years older. These
preferences would quite naturally vary across the board. The
total number of kilometres covered by the vehicle is also an
The numbers are not set in stone and are only used as
yardsticks to determine the working condition of the
vehicle. If your vehicle has crossed the age limit or has
been on the road for more than the maximum allowed distance,
it’s recommended you get your vehicle tested, especially if
you believe your car is no slouch compared to equivalent
younger and less-travelled car models. A road inspector
would likely perform the test and certify your vehicle’s
current state. With most car rental firms, individuals
signing up for an account would get the inspection done for
Block Dates for Self Use
Putting out a car for rent doesn’t mean you cannot anymore
use the car for private use. You’ll certainly want to have
the car to yourself for personal use, especially if it’s the
only car you own. As a car owner, you can block dates when
you intend to use the car for private use. If you have
listed the car on a rental service firm, you may notify the
website of the same well in advance.
Get Used to the Idea
Renting a car is not as easy as it sounds – especially if
you’ve never rented out cars before. To get your feet wet,
start renting your private vehicle to friends and
neighbours, and see how well you like the idea. Renting out
a car may not be for everyone – this is particularly true if
you take good care of your car and expect others to do the
same too. Also, if you do not fancy the idea of friends and
family driving your car, car rental won’t be a great option.
Therefore, start with renting your vehicle to the people you
know. If you don’t feel insecure or are not carefully
inspecting every inch of your car for any signs of damage or
wear and tear after the rental trip, you would likely make a
decent secondary business of renting out your car.