In the previous post, we talked about everything there is to know about car insurance for teenagers. After the article went live, we received a positive response from our readers. While going through the feedback, we noticed a question that we plan to address in today's post – insuring a car that you don’t own.

The Need for Insuring Another Person’s Car

For many, the question seems absurd. After all, why would anyone want to insure a car they don't own? Well, even though it seems ridiculous, it is actually a brilliant question. In certain circumstances, you actually might need to insure another person's car. For example, let us say that you bought your son a new vehicle registered in their name.

When applying for car insurance, you realise that the rates are too high because your son is still young. We already discussed why teenagers pay a high insurance premium. To avoid paying the high costs, you decide to insure the car yourself even though you do not own it.

Please note that PitStopArabia does not recommend doing so as it is unethical and might be considered illegal. The reason is that you are purposely lying to the insurance company. It is better to register the car against your name and mention your child as an additional driver (people driving the vehicle other than the policyholder).

Apart from this, there are countless other cases where you might need to insure a car that you do not own. For example, your parents are old, and they can no longer drive. You decide to use their car without transferring its ownership. In that case, you will still need car insurance. Other than this, you might be borrowing your friend’s car for a while.

Lastly, if you are a person who frequently rents cars from rental companies or likes to borrow from others, having insurance is highly recommended. The reason is that it will offer liability protection in case of accidents. Otherwise, the liability might end up forcing you to sell your assets to pay the damages.

Non-Owner Car Insurance

In certain countries, the law stipulates that insurance and car ownership must be against the same person. In other words, you cannot insure a car that you don't own. Some countries are much more relaxed, and car insurance companies offer non-owner car insurance.

What is included in non-owner car insurance?

It is challenging to answer the question as the policies vary. Nevertheless, you will get enough protection that offers liability protection. In most cases, the basic non-owner car insurance policy is equivalent to third-party car insurance. If you need more, you can ask the car insurance company. Due to the high competition, car insurance companies try to appease customers. Therefore, you might end up with a policy that is per your liking and requirements.

Non-Owner Car Insurance in UAE

The next logical question is, do car insurance companies in the UAE offer non-owner car insurance? The answer to this question is not straightforward. It is challenging to conclude that it is legal or illegal. For clarification, it is better to consult with the relevant UAE authorities. They can guide you better. If it is legal, you can talk to the representatives of different car insurance companies about non-owner car insurance rates.

Wrap Up

This concludes our article and if you have any questions, feel free to ask. Non-owner car insurance might soon become a thing in UAE’s insurance market considering the number of people visiting the country each year.