Full auto insurance premium has been paid for the next year. The policyholder is currently terminally ill.
Here’s the situation: The car is insured with Liberty Mutual and the policy has been fully paid for the next 12 months. If the policyholder passes away in the coming weeks, what will happen? Is it possible for the estate to receive a prorated refund? Can the policy be transferred to another family member?
I’m sorry to hear about the difficult situation. Here are some points to consider regarding the auto insurance policy with Liberty Mutual:
Refund of Premium: Generally, if the policyholder dies, the estate may be eligible for a pro-rated refund of the unused portion of the premium. This typically depends on the specific terms of the policy and the state laws. It would be advisable to contact Liberty Mutual directly to understand their policy regarding refunds in the event of death.
Transfer of Policy: Transferring the auto insurance policy to another family member might be possible, but it usually requires the new driver to be approved by the insurance company. The new policyholder would likely need to contact Liberty Mutual to initiate this process and provide any necessary information.
Continuing Coverage: If the vehicle is still needed by a family member, it might be a good idea to discuss options for keeping the coverage active or transferring it rather than letting it lapse.
Legal Considerations: It’s also wise to review any legal matters with a lawyer, especially regarding the estate. They can provide guidance on how to handle financial and insurance matters after the policyholder’s passing.
In any case, reaching out to Liberty Mutual will provide the most accurate and case-specific information.