What will the insurance company pay for when someone dies in a car accident?
In most cases, auto insurance will pay for death benefits after death in a car accident, including medical bills and funeral expenses. The death must be a direct result of the car accident in order for auto insurance to pay out death benefits. In no-fault states, death benefits are often included in your personal injury protection policy. Read your auto insurance policy closely to see exactly what your auto insurance will pay for after death in a car accident.
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Table of Contents
Licensed Insurance Agent
Travis Thompson has been a licensed insurance agent for nearly five years. After obtaining his life and health insurance licenses, he began working for Symmetry Financial Group as a State Licensed Field Underwriter. In this position, he learned the coverage options and limits surrounding mortgage protection. He advised clients on the coverage needed to protect them in the event of a death, critica...
Travis Thompson
Insurance Claims Support & Sr. Adjuster
Kalyn grew up in an insurance family with a grandfather, aunt, and uncle leading successful careers as insurance agents. She soon found she has similar interests and followed in their footsteps. After spending about ten years working in the insurance industry as both an appraiser dispatcher and a senior property claims adjuster, she decided to combine her years of insurance experience with another...
Kalyn Johnson
Updated November 2024
According to the IIHS, there were 37,133 fatalities from motor vehicle crashes in the United States in 2017. Every year, thousands of drivers lose their lives in vehicle accidents.
Most people know that auto insurance covers certain medical expenses. However, auto insurance can also provide certain death benefits.
- What will auto insurance pay for after death in a car accident?
- Will auto insurance cover funeral expenses?
- How do auto insurance death benefits work?
Today, we’re answering all your questions about how auto insurance pays out death benefits after a fatal accident. Payouts can range from big to not at all.
If you’re ready to start searching for auto insurance companies right away, check out our breakdown of the best auto insurance companies.
Let’s get started.
Some Auto Insurance Policies Include Death Benefits to Cover Certain Expenses
Your auto insurance policy might have certain death benefits listed. An auto insurance policy that includes death benefits may cover the cost of a funeral and other expenses.
However, auto insurance death benefits will only be paid out when the death clearly occurred as a result of a car accident. Auto insurance companies may require an autopsy to verify that they need to pay death benefits.
Additionally, death benefits are optional in most states. If you live in a no-fault state that requires personal injury protection (PIP) insurance, then death benefits may be automatically included in your policy. 12 states in America are no-fault states. Drivers in all other states, however, may have no death benefits in their policies whatsoever.
If your loved one was killed by an at-fault driver, then you may be able to pursue certain death benefits from the at-fault driver’s insurance company.
If the other driver was uninsured or had too little insurance, then you may also be able to make a claim under the deceased driver’s uninsured or underinsured motorist coverage.
If the death occurred as a result of someone else’s negligence, meanwhile, then you may choose to file a wrongful death claim by working with a car accident attorney.
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Who Can Receive Death Benefits from Auto Insurance?
Typically, your insurance policy will clearly list who can receive death benefits after an accident, including:
- Your surviving spouse, assuming the spouse is a resident of the same household as the deceased at the time of the accident
- Parents of the deceased if the deceased is a minor and is living with their parents at the time of the accident
- The estate of the insured person (if neither of the above applies)
Essentially, death benefits flow to a surviving spouse, the surviving parents of a minor, or the estate of the deceased individual.
Additionally, death benefits are only paid when one of the individuals listed on the declarations page of the auto insurance policy dies. An auto insurance company is only required to pay death benefits when the individual who died is specifically listed on the policy.
Death benefits can have an impact on auto insurance rates as well. Generally, states where auto insurance companies have to pay more out in claims often have higher auto insurance rates.
An example of this is the list of the 10 states with the most fatal car accidents. States like Louisiana, Georgia, and Florida have higher-than-average auto insurance rates. Sometimes, like for Louisiana auto insurance, rates can be among the highest in the country.
What Do Auto Insurance Death Benefits Cover?
Auto insurance death benefits will typically cover death-related expenses up to a certain limit. Some of the things that can be covered by death benefits include:
- Funeral and burial expenses
- Medical bills
- Loss of wages
Read more: Can I get reimbursed for lost wages if I am unable to work due to injuries sustained in the accident
Some states ignore coverage limits with death benefits. If your auto insurance policy’s medical coverage has already been used up, for example, then you would not ordinarily be able to claim more money from your insurance company.
Some states make an exception for funeral expenses and death benefits, however, allowing policyholders to get paid even if their coverage has been used up.
Additionally, not all states require insurance companies to cover the loss of wages. Typically, no-fault states require insurance companies to compensate for lost wages as part of the auto insurance policy’s death benefits.
In most states, however, loss of wages is not part of a death benefits payout from the insurance company (although it may be claimed in a wrongful death suit).
What is Not Covered By Auto Insurance Death Benefits?
Certain expenses are not covered by auto insurance death benefits, including:
- Death of an individual who was not named on the insurance policy’s declarations page
- Deaths that occur from injuries sustained in the course of the insured person’s occupation, although there are certain exceptions to this rule
- Deaths that occur from a disease that has nothing to do with the accident
- Deaths that occur from suicide, war, accidents with farm vehicles or trains on private roads, or accidents caused during a race
Again, the insurance company may require an autopsy to verify that the cause of death falls under your auto insurance coverage. If the death meets any of the above requirements, then it may not be covered under traditional auto insurance death benefits.
Read more: How many people die in car accidents every year?
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Conclusion
Some auto insurance policies come with death benefits. In no-fault states, death benefits are included by law with all insurance policies as part of personal injury protection coverage. In most states, however, death benefits are considered optional.
If you do have auto insurance death benefits, then these benefits can cover certain related expenses, including funeral expenses, medical bills, and loss of income.
If your loved one was killed in an accident where someone else was at-fault, then you may be able to seek compensation through the insurance company of the other driver. You may also be able to sue the other driver for damages.
Ultimately, auto insurance death benefits can be complicated. Consider speaking with an auto insurance attorney to understand your options when it comes to claiming death benefits after a car accident.
Understanding Car Insurance After Death
When a car insurance policyholder dies, it’s crucial to understand the subsequent steps. The car insurance after the death of the policyholder can be a complex process, but it’s essential to know that the coverage doesn’t immediately end.
In fact, the car insurance after death policyholder remains active until the policy’s expiration date, allowing for a car insurance claim after death.
This is particularly important in cases where the policyholder’s demise is due to a car accident, as it allows for a car accident death insurance payout.
However, it’s important to note that car insurance death benefits are not always guaranteed. The specifics of what the insurance covers are outlined in the policy. For instance, some policies may include an car insurance after the death of the owner, which provides additional payout in the event of a fatal accident.
So, when pondering the question, “does car insurance cover death?”, the answer largely depends on the specifics of the policy. In any case, understanding what happens to auto insurance when someone dies is crucial for beneficiaries to ensure they receive any due insurance payout for car accident death.
Navigating Car Insurance in the Event of a Fatal Accident
In the unfortunate event of a fatal car accident, understanding the insurance implications is crucial. If the deceased was insured, a road accident death insurance claim or a car accident death insurance claim can be filed by the beneficiaries.
This process involves submitting necessary documents to the insurance company, including the death certificate and accident report. However, the question often arises, “how much does insurance pay for death?” The answer largely depends on the specifics of the policy.
The question, “does car insurance cover an accidental death?”, is often asked by policyholders and beneficiaries alike. The answer is yes, but it depends on the type of coverage the policyholder had. Some policies include a car insurance death payout, also known as a death benefit.
This car insurance payout for death is a predetermined amount that is paid out to the beneficiaries upon the policyholder’s death due to a car accident.
It’s important to note that not all auto insurance policies include death benefits. So, when asking, “does auto insurance cover death?”, it’s essential to review the policy details. Some policies may include a car insurance death benefit or an automobile death benefit, which provides a payout in the event of the policyholder’s death.
Additionally, some policies may include an accidental death car insurance clause, providing additional coverage in the event of a fatal accident.
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Understanding Auto Insurance and Accidental Death Coverage
Frequently Asked Questions
Can I pursue a wrongful death claim if the death occurred due to someone else’s negligence?
Yes, you can pursue a wrongful death claim if the death resulted from someone else’s negligence. Consulting with a car accident attorney specializing in wrongful death cases is recommended.
How can I file a claim for auto insurance death benefits?
To file a claim, contact your insurance company and follow their instructions, providing necessary documentation and information.
Is an autopsy required to claim auto insurance death benefits?
In some cases, an autopsy may be required by the insurance company to verify the cause of death as a result of the car accident.
Can death benefits be claimed if the deceased was not at fault in the car accident?
Yes, death benefits can be claimed even if the deceased was not at fault. You may be able to seek compensation through the insurance company of the at-fault driver.
Are death benefits automatically included in all auto insurance policies?
No, death benefits are not automatically included in all auto insurance policies. They may be optional, except in some states where they are mandated as part of personal injury protection coverage.
What is not covered by auto insurance death benefits?
Auto insurance death benefits typically do not cover deaths of individuals not named on the policy, occupational injuries, unrelated diseases, suicide, war, accidents with farm vehicles or trains on private roads, or accidents during races.
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