What Happens to a Car Insurance Policy When Someone Dies?

When a loved one passes away, along with dealing with the loss, you’ll have a lot of issues to settle. One thing you’ll need to take care of is car insurance after the owner passes. 

To connect with someone who can help you resolve auto insurance coverage and the other insurance issues you need to handle after a death, reach out to Farm Bureau.

Here are the key steps you should take to handle auto insurance after a death.

Check to See How Long the Policy Is Effective

An auto insurance policy is generally still active for a period of time, usually until the estate is settled. That gives you some time to decide what you want to do with the vehicle, such as sell it or transfer it to someone else. 

Contact the Estate Car Insurance Agent

You should tell the insurance agent or company that your loved one passed away and verify the length of time that the policy is effective.

Ask them what documentation they will need to close the policy. You may need to:

• Show the death certificate.
• Prove that you are the executor of the estate.
• Have evidence that shows the status of the vehicle such as a title transfer, bill of sale or proof that the vehicle isn’t being used anymore.

Gathering these documents might seem like a lot of effort, especially if you’ve worked with your insurance agent for a long time, but these steps can help prevent fraud.

Keep Paying the Premium

To have the coverage in place temporarily while the estate is settled, you need to keep up with the payments. Once the policy is closed, you’ll get a refund for any overpayments.

Update the Policy

Instead of closing the policy, you may want to modify it. For example, if one spouse dies, the other may want to move coverage into their name. 

Resolve Any Open Claims

What happens with car insurance when someone dies and a claim is still being processed? Claims stay active, and the insurance company processes them just as they would if the person were alive. If they pay a claim, the money becomes part of the estate.

Contact the DMV

It’s a good idea to let your state’s Department of Motor Vehicles know that your loved one has died. If you are taking their car off the road, you may qualify for a refund on registration fees.

When Someone Dies in a Car Accident

Most of the time, a policyholder’s auto liability coverage doesn’t pay for their own injuries when they die in an accident. Personal injury protection or accidental death coverage might pay for those medical or funeral expenses. If another driver causes the accident, their liability insurance might cover some or all of the expenses.

Why Working With a Professional Makes a Difference

When a loved one dies, you need all the support you can get. At Farm Bureau, we understand that, and we want to make the process as simple as possible. Talk to Farm Bureau for all of your insurance needs.