What happens to car insurance after death?

Dec 07, 2016

3 min reading time

After death, you can cancel the deceased's insurance policies, but this does not automatically apply to car insurance. After all, the car must remain insured. What are the options?

Car insurance is often forgotten by next of kin. In fact, action must be taken. In many cases, they will want to sell the car, but what if that does not work out in the short term?

Car remains insured after death of owner

After death, the next of kin have five weeks to decide what to do with the car. During this period, the car can be sold. After these weeks, the car must be transferred to the name of the next of kin, for example. When transferring the license plate, also think about the car insurance. This must also be converted. When the car is sold, it is a matter of transferring the license plate to the buyer's name and ending the car insurance.

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Can the license plate be suspended first?

You can, but the license plate cannot remain in the name of the deceased. So the car must first be transferred to the name of a next of kin. Then you can suspend the license plate. When suspending, you can suspend or cancel the insurance. If you are going to use the car again, you must first lift the suspension. Also consider the insurance. If you choose to suspend the license plate, the vehicle does have to be taken off the public roads. It does not matter whether or not one will drive the vehicle. If the vehicle remains on the public road, then there is an insurance requirement.

Will car insurance become more expensive by transferring?

Transferring to another name changes a lot for car insurance purposes. The deceased's claim-free years are lost. This is not the case if the deceased's partner gets the car in his or her name. The premium for health insurance becomes dependent on the person who got the car in their name after the transfer. The regular driver can also affect the premium. So after transferring, you take out a new insurance policy.

Is inheritance tax due on a car?

Next of kin owe inheritance tax on an estate. This includes the value of the car. This is the value on the date of death. The value can be determined indicatively. It does not matter if the car is sold or if one of the survivors keeps the car.

Next of kin have several options with car insurance. It is wise to inform the insurer of the death. Also provide a correspondence address if the next of kin cannot be reached at the deceased's former address. Discuss with the insurer what the plans are for the car. Together you can determine the best solution.