Motorists are being warned to brace for higher insurance claim costs as a new levy on hired cars takes effect.
From today, Government’s car rental levy comes into force, replacing the long-standing requirement for visitors’ permits and applying to all vehicle rentals by visitors and residents. The levy, which will be charged on all legally registered “H” licence plate vehicles, is set at $5 per day for up to seven days, following a last-minute revision from the original proposal of $10 per day.
The change was announced in a recent Barbados Government Information Service statement, which also confirmed that the new rate will take effect after being pushed back from the original October 1 start date. According to the statement, Minister in the Ministry of Finance Ryan Straughn, who introduced the measure during the 2025 Financial Statement and Budgetary Proposals, said the revenue from the levy will help fund the work of the Barbados Ocean and Coastal Authority and the Barbados Nature Conservancy Trust, supporting efforts to safeguard the island’s coastlines, gullies and parks.
However, while the environmental purpose has been welcomed by some, the insurance industry is warning that the measure could trigger unintended financial consequences.
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