Private Hire Vehicle Insurance in Singapore
Whether you’re driving for Grab, Gojek, TADA, or other ride-hailing platforms, having the right Private Hire Car Insurance (PHV Insurance) in Singapore is not just important—it’s essential. A standard motor insurance policy is not sufficient for commercial usage, which is why every private hire driver needs a proper PHV car insurance plan. Whether you’re a seasoned private hire vehicle (PHV) driver or just starting out, the right insurance will help you meet regulatory requirements while protecting yourself, your passengers, and your vehicle. With PHV insurance, you can focus on driving with confidence, knowing that you are fully covered against the unique risks of private hire driving.
What is Private Hire Car Insurance?
Private Hire Car Insurance is a specialised motor insurance policy designed for drivers using their vehicles for ride-hailing services. Unlike standard motor insurance, which only covers personal and non-business use, private hire vehicle insurance provides necessary coverage for commercial driving activities. PHV insurance is specifically structured to comply with Land Transport Authority (LTA) regulations and platform requirements for commercial passenger transport services.
PHV insurance is specifically structured to comply with Land Transport Authority (LTA) regulations and platform requirements for commercial passenger transport services.
Key Features of Private Hire Car Insurance includes:
Coverage for accidents while the vehicle is engaged in ride-hailing or other hire-for-reward services
Higher revenue equals more products sold and more customers, and thus more exposure to risk.
Passenger liability coverage for rider protection
Optional add-ons such as roadside assistance and medical coverage
Why PHV Insurance is Important?
Personal Injury Protection:
Personal accident coverage provides financial protection and medical benefits if you or your passengers are injured in an accident. Drivers may need to opt for personal injury coverage as an add-on to have these benefits included in their policy.
Third-Party Liability:
In Singapore, it is mandatory to have coverage for accidents occurring during ride-hailing activities for hire. It is crucial to be protected against claims made by other drivers, passengers or pedestrians who may suffer injuries or damages due to your driving. Private hire vehicle insurance (PHV Insurance) typically includes third-party liability coverage to safeguard you against legal claims.
Financial Security:
Without insurance, the financial burden of repairs, legal fees, or medical expenses can be overwhelming. A comprehensive private hire vehicle insurance plan protects you from these unexpected costs.
Who Needs PHV Car Insurance?
PHV car insurance is essential for anyone using their vehicle for commercial or ride-hailing purposes in Singapore, including:
Ride-Hailing Drivers
Those driving for Grab, Gojek, TADA, or other platforms.
Delivery Drivers
Drivers working with GrabFood, Foodpanda, Deliveroo, Lalamove, and similar services.
Dual-Usage Drivers
Vehicle owners who use their cars for both personal and private hire purposes.
Private Hire Vehicle Insurance Coverage in Different Accident Scenarios
Accident While Driving with a Passenger Onboard
Scenario 1
Example:
You’re on a job when another car rear-ends you. Your passenger suffers minor injuries, and both vehicles are damaged.
What’s Covered:
- Vehicle Damage
- Third-Party Liability
- Passenger Injury Cover
- Towing & roadside assistance (if included in policy)
What’s Not Covered:
- Claims under standard private car insurance
Accident On the Way to Pick Up Passenger
Scenario 2
Example:
You accept a job on the app and are heading to the pickup point when you collide with another vehicle.
What’s Covered:
- Vehicle Repair Costs
- Third-Party Damage or Injury
What’s Not Covered:
- Any accident not reported within 24 hours
- Driving without a valid PHV license or expired decal
Accident While Not on Job (Personal Use)
Scenario 3
Example:
If your PHV car insurance includes dual-use coverage (private + hire), your insurer will treat the claim like a normal car incident.
What’s Covered:
- If your PHV car insurance includes dual-use coverage (private + hire), your insurer will treat the claim like a normal car incident.
- Third-party liability and vehicle damage
What’s Not Covered:
- If insurance only covers PHV usage, accidents during personal use may be excluded.
- Personal injury protection for yourself is also excluded.
Accident While Using The Car for Other Commercial Purposes (Eg. Delivery)
Scenario 4
Example:
You use your PHV car for a delivery job and get into an accident.
What’s Covered:
- Only if policy includes delivery use or dual commercial purposes.
What’s Not Covered:
- Standard PHV car insurance does not cover delivery services unless declared to your insurer.
- Using the car for undeclared commercial activity may result in claim rejection and policy termination.
Accident Involving a Passenger but Driver Is Unauthorised
Scenario 5
Example:
You lend your PHV car to a friend who isn’t listed on your policy, and they get into an accident during a job.
What’s Covered:
- None, unless the driver is listed as an authorised driver under your policy.
What’s Not Covered:
- Any damages or liability caused by unauthorised drivers.
- Some insurers may also suspend the policy for misuse.
Mechanical Breakdown (Not Accident-Related)
Scenario 6
Example:
Your engine stalls while driving between jobs.
What’s Covered:
- Some PHV car insurance plans may include 24-hour roadside assistance or towing.
What’s Not Covered:
- Routine wear and tear, battery drain or mechanical failure unless caused by an accident.
Frequently Asked Questions
About Private Hire Car Insurance In Singapore
- No, LTA requires all PHVs in Singapore to have commercial insurance for private-hire use to protect both the driver and passenger in the event of an accident.
- Yes, but you must have a valid private hire car insurance that covers commercial use. Standard car insurance alone is not valid for ride-hailing or delivery services.
- Yes. If you drive a vehicle for PHV services, you are required to have car insurance that specifically covers PHV operations. A regular car insurance policy does not cover losses, liabilities or risks arising from ride-hailing or transporting passengers for a fee.
- Yes, generally the risks are higher with more hours on the road, more exposure to passengers and more wear & tear may reflect a higher premium.
- Claims arising when carrying passengers without a proper license or registration
- Usage outside what is declared. (For eg. using the vehicle for delivery services under hire and reward when such use isn’t covered by the policy)
- PHV cars under 10 years old require annual inspections, unlike normal cars which are inspected every two years. Once a PHV exceeds 10 years of age, it must be inspected every six months, while regular cars continue with yearly inspections.
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