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One of the main misconceptions about car insurance is that it is mainly for car owners. But the fact is, it is based on the CAR itself rather than the owner. That is why you can effortlessly transfer your car insurance policy, swap plans, and even keep your no-claim bonus benefits no matter how many times you buy a new car. However, this promotes the misconception that you only require car insurance if you possess a car. Nevertheless, even if they do not own a vehicle insurance in Dubai and drive a rented one, all licensed drivers require car insurance coverage. This is where a non-owner car insurance policy comes into the frame. A non-owner vehicle insurance policy, which is designed to cover drivers on a per-person basis, is ideal for those who often drive borrowed or leased cars.

What is Non-Owner Car Insurance?

Non-owner car insurance plans are intended to cover the liabilities for licensed drivers who don't own a car but often drive them. If the policyholder causes an accident while driving a car that they do not own, a standard non-owner car insurance plan will pay for the damages to the third-party vehicle and the medical treatment of the third party. It may also pay legal bills if the policyholder is sued in the accident. Non-owner car insurance policies may cover a few more items, such as physical injury, depending on the amount of coverage provided by your insurance provider. Furthermore, it can also be used as evidence of insurance.

How Does Non-Owner Car Insurance Work?

A non-owner car insurance policy can be activated in two ways. Assume you are driving a rented car and met with an accident. If the car owner's primary insurance plan only covers a portion of the damage, your non-owner car insurance will pay the rest. If the owner's primary insurance policy does not cover damages in case someone other than the owner or a licensed driver drives the car, your non-owner car insurance policy will cover all costs up to the guaranteed sum of money. This indicates that non-owner car insurance policies are of second level coverage.

Who Requires Non-Owner Car Insurance?

If you find yourself in one of the following conditions, you are eligible for the non-owner car insurance:

People who frequently rent cars: Renting a car in the UAE necessitates the purchase of car rental insurance in either case. The majority of car rental companies purchase their rental insurance. If the rental agency recognises a non-owner vehicle insurance plan as a viable choice, choose that over the rental car insurance plan. Non-owner car insurance policies will wind up being far more cost-effective in the long term than other types of vehicle insurance policies for rental cars.

People who frequently borrow cars: Non-owner car insurance may be useful if you borrow a car from friends or family. While your friend's car insurance online policy may be extensive, it will not cover you as a driver. Other drivers, other than the car's owner, are only protected by insurance policies if they are named as named drivers in the policy. If you borrow a few different cars, being a named driver for all of them is not required.

People who have sold their car but will drive: A gap in your car insurance policy might result in the loss of various benefits in a short time. Selling your car might be difficult given the perks at stake. If you are planning to sell your car, a non-driver car insurance policy might be quite beneficial. Because you do not need to possess a vehicle to obtain this insurance, obtaining it will be rather simple. Furthermore, it will provide the necessary insurance coverage if you need to operate another car during this period.

You cannot drive your car at present: In this circumstance, having a non-owner car insurance policy might be quite beneficial. Your non-driver car insurance policies will not only allow you to drive other vehicles, but it will also act as proof of financial accountability. This also increases the possibility of your license being reinstated sooner than planned.

Remember, that you may not always need a non-owner car insurance plan when you are driving a car. Some situations like driving a corporate car, owning a car, or not renting or borrowing or renting a car, or even when you drive a family car/ the car belonging to a person staying in the same residence, you might not be eligible for the non owner car insurance. So before getting any further, make sure that you go through the details of your insurance policy.