What happens to a person’s car insurance policy when they die?
When someone dies, their car insurance will cover their spouse or may extend to the estate’s executor. There are a few options we will go over below should you no longer wish to keep the policy open.
Free Car Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Kristen Gryglik
Licensed Insurance Agent
Kristen is a licensed insurance agent working in the greater Boston area. She has over 20 years of experience counseling individuals and businesses on which insurance policies best fit their needs and budgets. She knows everyone has their own unique needs and circumstances, and she is passionate about counseling others on which policy is right for them. Licensed in Massachusetts, New Hampshire,...
Licensed Insurance Agent
UPDATED: Oct 13, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 13, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
Have you ever wondered what happens with car insurance when someone dies? Is car insurance still valid after their death?
Typically, most people who lose loved ones will look through accident, life, and final expense insurance policies even when dealing with their grief. But they may overlook auto insurance, even though the dead person’s car has to be dealt with.
So, what happens to car insurance after the death of the owner? Read on to find out.
Does car insurance coverage stop when someone dies?
A deceased person’s car insurance is still valid as long as the auto insurance premiums are up to date. The car insurance coverage will remain in effect after the death of the insured person if they left behind a listed spouse who chooses to keep the coverage. If you and your spouse were both insured under the same policy, you can easily file a car insurance claim and get compensation because the coverage extends to you.
Often, you can purchase joint car insurance even if you’re an unmarried couple. However, not all couples are insured under one policy. For example, some buy separate car insurance policies. In such a case, the surviving spouse provision allows the surviving spouse listed on the policy to inherit the car insurance coverage for the remainder of the policy’s term. In other words, you can keep using the vehicle, but the insurance company may require you to become the primary policyholder.
If the deceased was paying monthly premiums, you would need to keep paying them for the remainder of the term to keep the coverage.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
What happens to car insurance after the death of a policyholder without a spouse?
According to IRMI, when someone dies and doesn’t leave behind a spouse, the car insurance policy after their death may provide limited coverage to the estate’s executor.
If you are the estate’s legal representative, you have the legal responsibility to use and maintain the deceased’s car. That means that the executor can’t drive a deceased person’s car for personal reasons.
Instead, you have the permission to drive the car for maintenance purposes and to serve the estate’s needs until the car is sold or otherwise disposed of. So, you can take it to tire dealers, auto repair shops, and similar places, but you can’t go shopping or travel with it.
In addition, as the legal representative, you cannot permit other people to drive the deceased person’s car. Any car insurance claim after the death will be denied if someone else gets involved in an accident while using that vehicle.
How do you retain auto insurance when someone dies?
If you’re a spouse of a policyholder dies with an active car insurance policy, you need to notify the car insurance company of their death. You may be required to present relevant documents such as death certificates. Then the insurer will remove the deceased’s name from the policy.
You’ll then need to decide whether you want to inherit the policy or cancel it. If you inherit the policy, you’ll be responsible for continuing to pay for it. Keep in mind that the policy terms may also change. As a result, you may end up with different insurance rates.
IRMI states that if you are the executor and wish to use the vehicle for more than estate business, you can purchase an extended named non-owner or endorsement policy. The non-owner car insurance usually covers those without cars but who borrow or rent them.
Alternatively, you can contact the insurance company to amend the policy so it covers you and the deceased’s estate. Then you can use the vehicle for personal use until the estate is settled. In addition, you can permit others to drive it without compromising the coverage.
How to Cancel Car Insurance of a Deceased Person
Regardless of whether you are the spouse or legal interest, you can cancel the policy by contacting the insurance company and explaining your circumstances. However, it may be best to wait until the car is registered in someone else’s name.
Some companies tend to charge an early termination fee for canceling a car insurance policy. This fee may be waived in the event of a death, though, and you may also be entitled to a refund of the unearned premiums.
It is worth noting that you can still cancel a policy and get any open claim settled. The insurance company will subtract any applicable deductible from the settlement before giving the remainder to the deceased’s spouse or estate. If the deceased passed on due to a car accident, the insurance company is likely to total the car. In that case, you can file a claim, wait until it is resolved, then cancel the policy.
What happens to my car if I die, can someone else keep it?
If you intend to keep the car, you can first transfer the car’s title to your name and then buy a new policy that provides you with coverage. Then, shop around and compare prices online to get the best rates available.
Read more: Can I transfer car insurance to another person?
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Maintaining Car Insurance After the Death of an Owner
Car insurance after someone’s death may or may not extend to you. It depends on your relationship with the policy owner and whether you were included in the policy. Spouses have a much easier time getting the coverage extended to them. But legal representatives also get limited coverage.
However, until the insurance company clarifies the issue and you are sure you’re covered, you should not drive the deceased person’s vehicle. It is illegal to drive a car registered to a deceased person and if you get involved in an accident, you may be liable for all related damages and injuries. It’s important to provide all the relevant documents to the insurance company so it can change the policy as soon as possible.
Case Studies: What happens to a person’s car insurance policy when they die?
Case Study 1: Spouse Inherits Coverage
After the death of her husband, Mary was listed as a spouse on his car insurance policy. As the policy premiums were up to date, the coverage remained in effect for Mary. She was able to file a car insurance claim and receive compensation because the coverage was extended to her.
However, Mary had to inform the insurance company of her husband’s passing and may need to provide relevant documents, such as death certificates.
Case Study 2: Limited Coverage for the Estate’s Executor
James passed away without a spouse. As the executor of his estate, his auto insurance policy provided limited coverage to his estate’s executor. The executor, in this case, could use the vehicle for maintenance and estate-related purposes but was not allowed personal use or permit others to drive the vehicle. Any claims filed would be denied if someone else got involved in an accident while using the car.
Case Study 3: Cancelling the Policy
After her mother’s passing, Sarah, as the legal representative of the estate, decided to cancel the car insurance policy. She contacted the insurance company, explained the circumstances, and provided the necessary documents.
Sarah waited until the car was registered in someone else’s name before canceling the policy. Some insurance companies may waive early termination fees in the event of a death, and Sarah was entitled to a refund of the unearned premiums.
Frequently Asked Questions
What if car insurance policyholder dies?
When someone dies, their car insurance will cover their spouse or may extend to the estate’s executor. There are a few options we will go over below should you no longer wish to keep the policy open.
Does car insurance cease on death?
As long as the auto insurance premiums are up to date, the auto insurance coverage will remain in effect after the insured dies if they left behind a listed spouse who chooses to keep the coverage. If you and your spouse were both insured under the same policy, you can easily file a car insurance claim and get compensation because the coverage extends to you.
What happens to auto insurance when someone dies without a spouse?
According to IRMI, when someone dies and doesn’t leave behind a spouse, the auto insurance policy may provide limited coverage to the estate’s executor. The executor has the responsibility to use and maintain the deceased’s car for estate purposes but cannot drive it for personal reasons or permit others to drive it.
How do you retain auto insurance when someone dies?
If you’re the spouse of someone who dies with an active car insurance policy, you need to inform the insurance company of their passing. You may be required to present relevant documents such as death certificates. You can choose to inherit the policy and continue paying for it or cancel it. As an executor, you can purchase an extended named non-owner or endorsement policy if you wish to use the vehicle for more than estate business.
How do you cancel car insurance when someone dies?
Regardless of whether you are the spouse or legal representative, you can cancel the policy by contacting the insurance company and explaining your circumstances. It may be best to wait until the car is registered in someone else’s name. Some companies may waive early termination fees in the event of a death, and you may be entitled to a refund of the unearned premiums.
Is a car still insured if the policyholder dies?
Generally, a car is still insured if the owner dies, but only for a brief period , allowing time for the estate to make arrangements.
Can you insure a deceased person’s car?
Yes, the estate executor can get car insurance for a deceased owner vehicle to cover it during the transition period.
What insurance pays off your car if you die?
If you have comprehensive or collision coverage, the insurance may pay off the car loan or provide compensation to the estate in case of your death.
How long can you drive a deceased person’s car?
You should avoid driving a deceased person’s car until the estate’s affairs are settled and the vehicle’s ownership is legally transferred.
What happens if you drive a deceased person’s car?
If you drive a car when someone dies without authorization or proper coverage, you may be liable for any damages or legal consequences.
Does car insurance cover death?
Car insurance typically covers death or injury to others involved in an accident caused by the insured driver.
How much does car insurance pay for death?
The amount paid for death in a car insurance policy varies depending on factors such as the coverage limits, the circumstances of the accident, and any legal liabilities involved. Typically, it covers medical expenses, funeral costs, and potentially compensation to survivors.
Is car insurance void after death?
Car insurance after someone dies doesn’t automatically become void, but it may need to be adjusted or transferred to the estate or a new owner.
Can an administrator of the estate get car insurance in probate?
Yes, the administrator can get car insurance if someone dies during the probate process to ensure it remains covered.
Does gap insurance cover the death of a car owner?
Gap insurance usually covers the outstanding loan balance in the event of the car’s total loss, but it typically doesn’t cover the death of the owner.
Can I drive my mom’s car if she is deceased?
You should refrain from driving your deceased mom’s car until the legal ownership is transferred. Similarly, if your dad passed away, you cannot drive his car until the car is in your name.
Can you get USAA insurance if your parent is deceased?
If you’re eligible for USAA membership based on your parent’s military service, you can still join USAA if your parent is deceased.
What happens to a car when someone dies without a will?
The car of the deceased would typically go through probate, where a court will determine how to distribute the assets according to state law.
How to insure a deceased person’s car?
To get car insurance in case of death of a policyowner, the executor of the estate would typically contact the insurance company to inform them of the situation. They may need to provide documentation, such as a death certificate and proof of their authority to act on behalf of the estate.
Does car insurance cover the death of a car owner?
Car insurance typically doesn’t cover the death of the car owner directly. Instead, it may provide coverage for liability in the event that the owner’s actions or negligence lead to someone else’s death. Additionally, certain types of coverage like personal injury protection or medical payments coverage may help cover medical expenses in the event of an accident resulting in death.
What to do with car insurance when someone dies?
When someone dies, their car insurance should be transferred to the appropriate party, such as the executor of the estate or a new owner.
How to transfer car ownership after death?
Transferring car ownership after death typically involves several steps:
- Obtain a death certificate for the deceased.
- Determine who will inherit or take ownership of the vehicle.
- Complete the necessary paperwork to transfer ownership.
- Submit the required documents to the local DMV.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Kristen Gryglik
Licensed Insurance Agent
Kristen is a licensed insurance agent working in the greater Boston area. She has over 20 years of experience counseling individuals and businesses on which insurance policies best fit their needs and budgets. She knows everyone has their own unique needs and circumstances, and she is passionate about counseling others on which policy is right for them. Licensed in Massachusetts, New Hampshire,...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.