Car Insurance After a Death: What to Do and Who Can Drive

Call the car's insurer before anyone drives the car. What a policy does after the policyholder dies depends on its wording, the insurer and your state, so don't assume it still covers you or the estate. Keep the car insured until it is sold, retitled or formally taken off the road, and don't cancel the policy until you know what is happening to the car.

Does car insurance end when the policyholder dies?

There is no single rule. Some policies keep covering a surviving spouse or household members, some deal with an executor in a particular way, and some insurers handle a death by phone while others want paperwork first. The only reliable answer comes from your policy and the insurer.

What is firm is the legal background. The Insurance Information Institute says virtually all states require drivers to carry auto liability insurance, with rare exceptions such as New Hampshire, and that Virginia lets people register an uninsured vehicle for a significant fee. It also says most states require insurers to notify the motor vehicle department when a policy is cancelled or not renewed. In practice, a car that is still registered but whose policy has been cancelled can come to the state's attention. Penalties vary by state, so check your motor vehicle agency before you cancel.

Who can talk to the insurer?

The person who bought the policy can no longer act, so the insurer will want to know who is stepping in. That is usually one of these:

• A surviving spouse or household member who is listed on the policy. They may be able to deal with the insurer directly about their own cover.
• The executor or administrator. The FTC says the executor, named in the will, settles the dead person's affairs, and if there is no will the court may appoint an administrator or personal representative. An insurer may ask for court letters before it changes a policy for the estate. Our guide to what an executor does explains the role.
• Someone with no formal role. An adult child, for example, who is not on the policy and has not been appointed may be able to report the death but may not be able to make changes. Expect the insurer to ask for proof of authority.

What should you ask the insurer?

Write down the answers, with the date and the name of the person you spoke to. If you can, ask for them by email or letter too.

1. Is the policy still in force, and until what date?
2. Who is covered to drive the car now? Does that include a surviving spouse, other household members or the executor?
3. Is the car covered when someone drives it for estate business, such as to a mechanic, a valuation or a sale?
4. Is the car covered while it is parked, for example against theft, fire or storm damage? Is there a cheaper option for a car that will sit unused, and does the state or the lender allow it?
5. How can the policy be changed or cancelled, who can ask for that, and what proof do you need?
6. What happens to any unused premium, who will the refund go to and where will it be sent?
7. If someone will keep the car, what must they do, and by when, to insure it in their own name?

What documents will the insurer ask for?

Requirements differ by company. These are the documents people are most often asked for.

• A death certificate. USAGov says you need a certified copy for many tasks, though a photocopy may be enough for others, such as canceling a subscription. Ask the insurer which it needs. Our guide on how many copies to order helps you plan.
• Court letters, if you are the executor or administrator. These prove your authority to act for the estate.
• The policy number or declarations page. If you cannot find it, look for the insurance card in the glove box or in the person's mail and email.
• Vehicle details. The VIN and registration, and the title if you plan to sell or transfer the car.
• Lender details, if there is a loan.
• A bill of sale or transfer paperwork, once the car is sold or retitled.

What should you do in each situation?

The right move depends on who will use the car and what will happen to it.

For an heir, the paperwork can decide the timing. The Texas DMV says you must provide proof of liability insurance when you title and register a vehicle, and that without it you may apply for a title only. If you inherit a car and want to drive it, you will need a policy in your own name. Other states set their own rules. Our guide to vehicle registration after a death explains the title side, and our guide to selling a car after someone dies covers sales.

What about a car loan or lease?

If the car has a loan or a lease, the lender or lessor has a legal interest in it. The NAIC says collision and comprehensive coverage are not required by state law, but lenders may require them on a financed or leased vehicle. The FTC says debts are generally paid from the estate, not by relatives, unless you co-signed or another exception applies. Our guide to debts when someone dies explains who is responsible.

What mistakes should you avoid?

• Cancelling before the car's future is settled. A cancelled policy can cause a gap in coverage and may be reported to the state. Wait until you know whether the car is being sold, retitled or taken off the road.
• Letting someone drive on the assumption that they are covered. Check first, and get the answer in writing.
• Keeping the dead person's policy going indefinitely for an heir. The heir should have their own policy and retitle the car in their own name.
• Missing the refund. Make sure the insurer has an address that will actually be checked, so a refund check does not go astray.
• Forgetting other policies. Home and renter's policies have their own rules. Our guide on home insurance after a death covers them, and notifying insurers covers the rest.

What to do next

1. Find the policy number, insurance card or declarations page.
2. Call the insurer, report the death and ask the questions above. Do not cancel yet.
3. Keep the car off the road unless the insurer has confirmed coverage, and keep it somewhere secure.
4. Decide with the executor whether the car will be kept, sold or retitled, then follow the steps in the vehicle title guide.

This guide is general information, not insurance or legal advice. Policies, state law and insurer practices differ, so confirm details with the insurer and your motor vehicle agency, and ask a probate attorney if the estate is complicated.