Safeguards against Exploitative Excess Arrangements in Car Rental and Car-sharing Services

Mr Kenneth Tiong Boon Kiat asked the Acting Minister for Transport (a) whether the Government has data on the proportion of accident repair costs for rental and car-sharing vehicles below the $5,000 to $16,000 motor insurance contractual excess thresholds and thus go unclaimed; (b) whether the Government will regulate rental operators charging contractual excess exceeding actual insurance policy excess; and (c) what safeguards protect hirers from exploitative excess arrangements.

The Government does not have data on accident repair costs for rental and car-sharing vehicles. Excess arrangements are part of the contractual terms between car rental companies and their hirers. The Government does not intervene in such commercial arrangements. Introduction of regulations would increase costs, which would likely be passed on to hirers through higher rental rates.