What happens to an auto insurance policy when someone dies?
What happens to an auto insurance policy when someone dies can be tricky, and you shouldn't drive the deceased owner's vehicle until the policy is transferred to your name.
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Chris Abrams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...
Licensed Insurance Agent
UPDATED: Sep 5, 2024
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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: Sep 5, 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 auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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If you have recently lost a loved one and you are dealing with the necessary paperwork, you will also need to sort out car insurance after the death of the owner. In addition to grief, you may also have several questions including can you drive a deceased person’s car? And if so, how long can you drive a deceased person’s car? Does car insurance cover the death of an owner? Is car insurance still valid after death?
Dealing with car insurance when someone dies can be complicated. When someone passes away their auto insurance needs to be canceled, but this is not an automatic process. The steps involved will depend on your relationship to the deceased policyholder and the wording of the policy. You may have to contact the car insurance beneficiary and take care of any car insurance death benefits.
This article will explain what happens to car insurance after someone dies, how to cancel insurance when someone dies, and what documentation you will need to provide for a change of name on the car registration.
- Most policies will be canceled after the owner passes away, but you’ll need to inform the insurance company of their passing
- If the car owner who passed away was your spouse, their policy can be transferred to you
- A spouse can easily cancel the deceased policyholder’s insurance, but a relative or the estate executor can also do it
What happens to their auto insurance policy when someone dies?
You might wonder is a deceased person’s car insurance still valid? Initially, the answer is yes. When someone passes away, their policy will need to be canceled or they need to be removed from it if there are other drivers registered on the same policy. A remaining spouse, a close relative, or an estate executor will need to initiate the cancellation process.
To be sure, the best thing to do is to call the insurance company on the policy and inquire about the necessary steps. Cancelling car insurance when someone dies can bring up complications that you didn’t previously know about prior to the death.
The safe answer to the question can you drive a deceased family member’s car is a simple no. You and other family members shouldn’t drive the car until the coverage is sorted out. When speaking to the auto insurance company, ask them about setting up temporary arrangements to allow you or the estate executor to drive the car for maintenance and estate needs.
Some policies already predict these issues by covering the surviving spouse and a legal representative. This type of coverage is called “extended non-owned” and it will allow you or the legal representative to use the car for everyday purposes. However, other family members shouldn’t use the car until the insurance company transfers the dead person’s car insurance.
Keep that in mind if someone asks you to answer the question, can you get in trouble for driving a dead person’s car? Updating the car insurance if someone dies doesn’t need to be complicated by illegally driving a dead person’s car.
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What happens to open claims after the death of the vehicle owner?
If there are any open insurance claims on the car policy of the deceased, you can still cancel the policy and the claim will be processed through a settlement.
Any amount owed will be paid through the estate, while the insurance deductible can be taken out from the claim payout.
How to Cancel Car Insurance When Your Spouse Dies
When your husband passes away, one of the last things on your mind may be how do I sell my deceased husband’s car, and before you answer that question, you most likely will have to figure out how to cancel the car insurance of a deceased person. Thankfully, removing a deceased spouse from car insurance cost should not be much to add to your stress during the hard time.
If your spouse has passed away, their policy should be transferred to you. Part of removing a deceased spouse from car insurance means that you will be liable for payments to keep the policy active. The insurance rates might change based on your risk profile or any discounts the deceased driver previously had.
To clarify, it’s best to call the insurance company directly. If you are not happy with the increase in rates, feel free to shop around for a better rate.
If you wish to cancel your spouse’s policy, the process should be fairly simple. The first thing you should do is call the insurance company and inform them of your loss. You will probably be offered to become the primary policyholder if you were previously listed on your spouse’s policy.
If you choose to cancel the policy, the insurance company will most likely request proof of death of the policyholder, such as their death certificate or an estate executor form. Once you submit the required documentation the cancellation process should be done within a day or so, and you will receive a cancellation confirmation.
You may also be eligible to receive compensation if that month’s premium was already paid by your spouse. After informing your insurance company, you will have to find out how how to remove a deceased spouse from vehicle registration as well.
How to Cancel Car Insurance for Someone Other Than a Spouse
If the deceased policyholder was your relative or a friend, you will still be able to cancel their insurance but the process will be a bit more complicated than in the previous case. A question people may ask is, my dad passed away, can I drive his car?
Make sure to call the insurance company first and explain the situation, including your relationship to the car owner who passed away. The company will probably require additional information to confirm your relation to the deceased, such as the owner’s personal information or their social security number.
Once you provide the necessary documentation, the insurance company will need to verify your authority to cancel the policy on behalf of the policyholder who passed away. Your insurance company can help you find the best way to transfer the car title of a deceased person and how to insure a deceased person’s car.
When the process is complete you should receive a cancellation confirmation. Any reimbursements from the previously paid insurance rates will be transferred into the owner’s estate.
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The Bottom Line on Car Insurance After the Death of the Policyholder
Dealing with insurance companies and required paperwork is probably the last thing you wish to be doing after losing a loved one. However, ignoring the process and using their car without ensuring proper coverage could leave you exposed to liability in the event of a crash.
Make sure to contact the passed away owner’s insurance company sooner rather than later to begin the cancellation process or make necessary changes that will allow you to use the car without liability risk.
Frequently Asked Questions
What happens to an auto insurance policy when the policyholder dies?
So, is a car still insured if the policyholder dies? The car insurance after the death of a policyholder remains active until its expiration date or until it is canceled by the executor of the deceased’s estate.
That fact also easily provides the answer to the question of is a named driver still insured if the policyholder dies. Unless specifically canceled, typically the car insurance of the deceased stays active.
Notifying insurance companies of the death of a policyholder should be done as soon as possible.
Can the deceased person’s family or beneficiaries continue using the auto insurance policy?
In most cases, the deceased person’s family or beneficiaries cannot continue using the auto insurance policy in the name of the deceased. The policyholder’s estate will typically handle any remaining insurance needs or claims until a new arrangement is made.
Who should notify the insurance company of the policyholder’s death?
The executor of the deceased’s estate or a family member should notify the insurance company about the policyholder’s death. They will provide necessary information, such as the policyholder’s name, policy number, and the date of death.
Keep in mind that when a car insurance policy holder dies, the insurance providers need to be notified as soon as possible.
What documents or information should be provided to the insurance company?
When notifying the insurance company of the policyholder’s death, it is helpful to provide the death certificate and any relevant legal documents, such as the executor’s appointment letter or a copy of the will. These documents help establish the authority of the person contacting the insurance company and facilitate the necessary administrative processes.
How long does the executor or family have to update or cancel the auto insurance policy?
The executor or family should notify the insurance company about the policyholder’s death and make any necessary updates or cancellations as soon as possible. Insurance companies typically have specific timelines and requirements for reporting a death and making changes to the policy, so prompt action is recommended.
Can the auto insurance policy be transferred to another family member’s name?
Auto insurance policies cannot be transferred directly to another family member’s name after the policyholder’s death. Instead, a new policy may need to be established in the name of the appropriate family member or beneficiary who will be responsible for the vehicle.
What happens to the premium payments made by the deceased policyholder?
The premium payments made by the deceased policyholder usually cover the period for which the policy remains active. If there are any unused premiums, they are typically refunded to the estate or the designated beneficiary.
What happens if you drive a deceased person’s car?
You may ask yourself, is it illegal to drive a car registered to a deceased person? Well, driving a deceased person’s vehicle can be complicated, especially if the car is still registered in the deceased owner’s name.
In many places, it’s illegal to operate a vehicle that is registered to someone who has passed away unless you are a named driver on the deceased’s policy.
Car insurance in a deceased person’s name can become void or invalid upon their death, leaving anyone driving a deceased person’s car uninsured and liable in case of an accident.
Therefore, you must address the issue of insurance in the deceased person’s name and ensure that the vehicle is properly insured before driving it.
You should follow the appropriate steps to transfer ownership of the vehicle and update the car insurance accordingly.
What are the steps of transferring the title of a car after someone’s death?
If you find yourself in a situation where you have to ask, how do I transfer my deceased father’s car or even simply how to transfer the title of a car of a deceased owner, you may also be wondering how to transfer ownership of a car after death.
There are a few standards steps for how to transfer the title of car after death, including contacting the insurance company and paying any fees that might have occurred such as a penalty for late transfer of a vehicle after death.
However, transferring the title of a car after someone passes away can vary depending on the laws and regulations in your specific location.
Always make sure you check the requirements for where you live to learn how to get a title out of the deceased name.
What happens if my husband died and my name is not on the car lease?
If you’re asking yourself, am I responsible for my deceased husband’s car lease even if I’m not on the lease, the answer is most likely no.
Typically if your name is not on the lease, that means that legally you wouldn’t automatically assume ownership of the vehicle. However, what happens to a leased car when someone dies can be dependent on location.
And since the laws about what happens to a car lease when someone dies can vary depending on where you live as well as your specific circumstances, you should always check with your leasing company.
Can you legally drive a deceased person’s car?
So, can you drive a car of a deceased person? Well, driving the deceased person’s vehicle depends on if you are a named driver on the deceased’s car insurance policy or not.
For example, if you are a minor driving your deceased parents’ car, you are probably still covered by their insurance policy and therefore can legally drive the car.
What happens to car insurance when someone dies?
A lot of people wonder what happens to auto insurance when someone dies.
What happens with car insurance when someone dies depends on a variety of factors, but usually the car insurance policy stays active until someone specifically cancels it.
But always double check the specifics of the policy with the insurance company.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Chris Abrams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...
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.