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What Happens To Car Insurance If Owner Dies?

Learn about the process of transferring a car insurance policy when the owner passes away, including considerations for validity, renewal, and involvement of insurance companies, legal heirs, and the Regional Transport Office (RTO).

  • 27 Feb 2024
  • 2 min read

After a policyholder's death, their car is passed on to his or her legal heir. Then the heir must transfer the valid car insurance policy to their name or buy new insurance if it's expired upon renewal.

What happens to car insurance policy if the owner passes away?

When a person passes away, all their assets, including their car, are legally transferred to his or her heir. Consequently, the car insurance policy also needs transferred to the legal heir's name, provided it's still valid.

  • Validity of insurance policy: The insurance policy can only be transferred if it is valid at the policyholder's time of death. If it's expired, the insurance company won't transfer it, and the heir must purchase a new policy.
  • Renewal of expired policy: If the car insurance policy expires after the policyholder's death and the heir hasn't transferred it yet, they can renew it in their name. The heir can either renew the existing policy or compare other insurance plans for a better option.
  • Entities involved in insurance transfer:
    1. Insurance Company: Inform the company about the policyholder's death to update the policy details.
    2. Legal Heir: The policy transfers smoothly to a specified nominee. Without a nominee, it goes to the legal heir after due process.
    3. Regional Transport Office (RTO): The heir must transfer the car’s Registration Certificate (RC book) to their name at the RTO. A ‘No Objection Certificate’ from the bank might be necessary if the vehicle was on loan with pending instalments.

Also read:


To answer your question, “Is a car still insured if the policyholder dies?” in such a case, the car is transferred to the heir. Similarly, the car insurance policy also must be transferred to the heir. This will happen only if the policy is valid.

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