NSW Car Insurance Before Probate

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Europa

Member
20 December 2019
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What is the position of car insurance after the policy holder passes away, but before Probate is granted?

I understand that the Executor needs to notify the car insurance company that the policy holder has passed away, but will this leave the car uninsured until Probate is granted some months later?

What if the car is stolen during this period?

Thanks for your advice.
 

Scruff

Well-Known Member
25 July 2018
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2,389
NSW
The insurance company should be able to guide you here.

My guess is that the executor would need to be added as the administrator (and possibly the beneficiary) of the policy on the estate's behalf - sort of like a power of attorney for the policy.

If the policy needs to be cancelled and a new policy taken out, then that wouldn't really make much sense, because technically, the vehicle is owned by a deceased estate, not an individual - so who takes out the new policy? Note also that if the policy does end up being cancelled, then any unused portion of the premium should be refunded to the deceased estate.

I would contact the insurance company and ask them how to proceed. Let us know what they say, because this is a really interesting question.
 

Rob Legat - SBPL

Lawyer
LawTap Verified
16 February 2017
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Gold Coast, Queensland
lawtap.com
This is a pretty standard occurrence. The vehicle is part of the estate, so you contact the insurer to inform them of the death, that the insured asset forms part of the estate, and that the estate is in administration. They'll note the policy and continue the insurance.

The difficulty is is the premium is being paid in installments. Using the estate funds to pay for the insurance is a grey area. The best way is to have the executors fund the premium payments, as they will have a right of reimbursement once probate is granted.
 

Europa

Member
20 December 2019
3
0
1
Thank you too Scruff... I'll keep you posted if anything else pops up after speaking with the insurance company.