What happens to car insurance when the policyholder dies?

After a person dies, their car insurance policy will need to be canceled, or they will need to be removed from the policy if there are other drivers on it.

What happens if the owner of the car dies?

If a person dies intestate, and the person owned a vehicle, the person’s spouse automatically becomes the owner of the vehicle. If the decedent owned more than one vehicle, the surviving spouse may choose one of the vehicles.

What happens when named insured dies?

Response 4: If the named insured is deceased, a resident of the household at the time of the named insured’s death continues to be an insured as long as they remain a resident. You should talk with the carrier to see how they want to handle this. They might want to change coverage to a dwelling policy.

What happens to a car insurance policy when the policyholder dies?

After someone passes away, their car insurance policy will need to be canceled, but it does not happen automatically. And canceling a car insurance policy when the policyholder passes away may be more challenging than you imagine. The process depends on a few things, including whether or not you are related to the policyholder.

Can I keep the insurance policy under the name of deceased?

Under no circumstances should the family retain the insurance policy under the name of the deceased because that could complicate the situation and even be used as cause for insurance fraud.

What is a car insurance policy policyholder?

Every car insurance policy has a “policyholder” — the driver who purchased and is covered by the insurance. Policy changes, including the addition or removal of a vehicle or driver and cancellation of coverage, must be authorized by the policyholder.

Can you close a car insurance policy of a deceased family member?

The insurance company — responsible for the security of the policy — will protect its client’s assets by making it difficult to terminate the policy. You most likely won’t be able to close the car insurance policy of a deceased family member via a quick phone call.