Can I use my own car for Grab?

Turning Your Personal Car into a Grab Car: A Practical Guide

Thinking of supplementing your income by driving for Grab? Using your own car offers a potentially attractive entry point, but it’s crucial to understand the legal and logistical requirements before you hit the road. This isn’t simply a case of downloading an app; transforming your personal vehicle into a Grab-ready car involves several key steps.

The most significant hurdle is insurance. Your existing private car insurance is insufficient for commercial use. You must obtain commercial insurance specifically designed for private-hire vehicles like those used for Grab services. This is non-negotiable for both legal compliance and your own protection.

The process of obtaining this commercial insurance usually involves cancelling your existing private policy. Don’t worry about losing out entirely on your unused premium. Many insurers will offer to apply any remaining value towards the cost of your new commercial policy, potentially saving you money in the transition. Be sure to inquire about this option when contacting your insurer or a commercial insurer.

Beyond insurance, you need to register your vehicle appropriately with the relevant authorities. In Singapore, this involves registering your vehicle as a Z10/11 vehicle through OneMotoring, the official online portal for vehicle registration and related services. This official classification designates your car for private-hire use, ensuring you comply with all legal regulations.

Finally, don’t forget to inform your bank. This change in vehicle classification from private to commercial use may impact your financing arrangements, particularly if you have a loan secured against the vehicle. Contact your bank promptly to update them on this change and avoid any potential complications. Failing to do so could lead to difficulties with your loan repayment or even affect your insurance coverage.

In summary, using your personal car for Grab requires more than just downloading the app. It necessitates obtaining commercial insurance, registering your vehicle as a private-hire vehicle (e.g., Z10/11 in Singapore), and informing your bank about the change in vehicle classification. While it may seem like extra work upfront, taking these steps ensures you operate legally, safely, and without unexpected financial repercussions. Always check with the relevant authorities and your insurer for the most up-to-date and precise information applicable to your location.