Car insurance when someone dies: what happens next?

After someone has passed, there is usually a long list of practical jobs that fall on the family or the executor. Among these is handling a car insurance policy.

Uncertainty over what happens to car insurance after someone dies can cause problems if the car is still being moved, kept on a driveway, or sold later on.

This guide explains the usual steps in the UK, what to do about the car insurance policy, and what to watch out for if anyone needs to move the vehicle.

Is the car insurance policy still valid after someone passes?

A car insurance policy does not always end immediately when the policyholder dies, but it can become complicated quickly.

Most coverage is personal to the named policyholder. Once they have died, you should not assume the car can still be driven by a partner, relative, or named driver.

Even where someone is listed on the policy, the insurer may treat coverage differently after the death. The safest approach is to treat the car as not insured for driving until the insurer confirms the position.

What to do first

Let the insurer know early on. They will usually ask for the car insurance policy number, the date of death, and details of the person dealing with the estate.

Some insurers ask for a copy of the death certificate or a letter from the executor, although this varies.

When you contact them, ask two direct questions:

• Is anyone currently insured to drive the car?
• What are the options for cancelling or changing the policy?

That tends to clear up most uncertainty.

Can the car be driven to move it, store it, or sell it?

If the owner of the car insurance policy has died, it’s best not to do anything with the car until the insurer has confirmed the cover status.

If the car needs to be moved, for example, to a different address, a garage, a valuation appointment, or a buyer, it may be simplest for the person driving to arrange their own short-term insurance on that vehicle.

If the car is not being used and is staying parked, you still have a decision to make: keep it insured, or declare it off the road with a SORN. A SORN is only suitable if it is not being driven and is kept off public roads.

What happens to any refund?

If a car insurance policy is cancelled due to the death of the owner, insurers often refund the unused portion of the premium.

The money is typically paid to the estate, not to an individual family member.

Some providers waive cancellation fees after a death, but not all do. It is worth asking, especially if the policy was paid annually.

What if the car is being kept by a family member?

If someone in the family plans to keep the car, the policy usually cannot just be ‘handed over’ into their name.

They will normally need a new policy as the main policyholder, and the ownership details should be updated as part of the estate process.

If the car is being sold, the buyer must arrange their own insurance before driving it away.

Car insurance checklist: what to do when someone dies

• Contact the insurer and tell them the policyholder has died
• Do not drive the car unless the insurer confirms cover
• If the car needs moving, consider short-term cover for the driver
• Check whether a refund is due and how it will be paid

How Marshmallow can help

If you are looking for help with a Marshmallow policy after someone has died, please contact our team and they’ll guide you through the process. You can start a Live Chat from the Help page.

If you need to insure a car that has changed hands, we offer fully comprehensive car insurance that’s quick to set up and easy to manage.

Get your free quote today to see how we can help.