Auto insurance premium has been fully paid for the upcoming 12 months, but the policyholder is now nearing the end of their life.
Here’s the situation: The car is insured through Liberty Mutual, and the premium has been settled for the entire year. With the policyholder in poor health, what occurs if they pass away in the next few weeks? Is it possible for the estate to receive a pro-rated refund? And can the policy be transferred to another family member’s name?
I’m sorry to hear about the situation. In most cases, if a policyholder passes away, the auto insurance policy can remain in effect until the end of the paid term, as long as the premiums are already paid.
Pro-Rated Refund: The estate may be entitled to a pro-rated refund for any unused portion of the premium if the policy is canceled. It’s best to contact Liberty Mutual directly to discuss this matter, as policies may vary and there may be specific procedures to follow.
Transfer of Policy: Generally, auto insurance policies are not automatically transferable to another family member. However, many insurers allow for a change of name on the policy if a family member takes over the vehicle. Again, this would require contacting Liberty Mutual to understand what options are available and what the process looks like.
It’s essential to communicate with the insurance company as soon as possible to clarify these details and manage the policy appropriately.