How To Handle Auto Insurance Following The Death Of A Spouse

When a spouse dies, auto insurance coverage usually is one of the last things on your mind. However, insurance coverage is something that you need to consider if you plan to drive your spouse's vehicle and you aren't sure who is listed on the policy While your rights may vary depending on the state where you reside and the insurance company's rules for governing the matter, there are ways you can be insured on your spouse's vehicle after he or she dies.

Assignment of Benefits Clause

If your spouse dies, you must notify the insurance company of his or her death. Before contacting the insurer, review the "Assignment of Benefits" clause included in your spouse's or your joint auto insurance policy. The clause provides information about what coverage you can receive under the policy as well as how to obtain it.

The insurance company will help you determine your rights as related to being insured to drive the vehicle. If you were a co-insured spouse, the policy can remain in your name with no interruption of coverage. But you will need to request that the insurance company remove your spouse's name from the policy. Generally, auto insurance companies give you up to 30 days to notify them that your husband or wife has died.

Provision for Surviving Spouse

Even if you were not insured on the policy with your spouse, you may be able to receive insurance coverage for a time. Auto insurers often offer a provision for a surviving spouse that allows you to be covered under the policy until the current coverage term ends. This makes it possible for you to drive the insured vehicle until you decide if you want to sell it or keep the vehicle and take out an auto insurance policy of your own. To maintain coverage in the interim, you must pay the premiums and request to be named as the insured individual for the remaining coverage period.

Rights of an Executor

If you are the executor of your spouse's estate, you may be covered to drive his or her vehicle for maintenance purposes. For example, you can drive the vehicle if you are taking it to a service garage for inspection or repairs. You may also be covered to drive the vehicle to the office of the attorney who is helping you manage your spouse's estate. However, if you are covered as the executor of the estate and the policy had no provision for a surviving spouse, you cannot drive the vehicle for your personal use until you obtain your own insurance.

Right of Survivorship

Although you can buy an auto insurance policy that will cover you when driving the vehicle, you must first transfer the vehicle's title into your name. If the vehicle was titled in both your and your deceased spouse's names, you have the right of survivorship in which you automatically become the owner of the vehicle. Your state's department of motor vehicles will require that you show the original title and a certified copy of your spouse's death certificate when you change the name on the vehicle's title and registration to your name or your name alone.

If your spouse's estate is being probated, the administrator of the estate must assign the vehicle to you. When applicable, the bank or finance company listed on the title as a lien holder must complete the "release of lien" section on the title or give its consent for you to title the vehicle in your name so that you can purchase auto insurance of your own. For more information about auto insurance, discuss your options with a carrier such as Manassero Insurance Agency Inc.