Car Insurance policy cancelled with immediate effect on policyholder's death

Derventio

On 27th June, my mother passed away and when I called to inform her car insurance company, they cancelled her policy with immediate effect. I am a named driver on that policy yet from that moment was unable to legally drive her car. So, I can!!!8217;t legally drive it, remove it from her address, allow anyone to test drive it to sell, take it to a new owner or even drive it around the block to keep the battery going - not without taking out a new insurance policy.

I cannot take a new insurance policy on the car unless I am the registered keeper and cannot drive it on my own car insurance (that allows driving of other vehicles not belonging to me) as this requires the car in question to have its own insurance policy on it !!!8211; which of course my Mum's insurance company has just cancelled. All I can do is take !!!8216;temporary insurance!!!8217; which in my case will cost over £200 for just 2 months! This is ridiculous and many people just don!!!8217;t have that kind of money.

My insurance broker told me that they have been giving this as feedback for years, and that it is heart breaking to have to tell people crying on the phone that an insurance policy is cancelled with immediate effect. insurance companies with their own underwriting service are able to offer a 30-day grace period, but anyone whose loved one used an insurance broker will find the car insurance policy cancelled immediately! A sensible and common sense approach surely requires that all car insurance should give the same 30-day grace period?

I feel so strongly about this I have started a petition on Change.org. Can you all please support? Not sure if I can post links but go to Change.org and search:
"Legal requirement that car insurance gives 30-day grace period upon death of policyholder"

Thank you!

TrickyDicky101

This certainly isn't the case with all insurance policies - my father died recently and both I and my mother were named drivers and the policy was transferred over into her name without difficulty.

ciderboy2009

What insurance company won't let you take out insurance because your not the registered keeper?

I've never had a problem with that.

Quentin

Your broker has mislead you over this 30 days grace given by insurers compared with policies arranged by brokers.

Your broker should be able to help you get the vehicle legal again otherwise you need to sorn it now or tax it/insure it in your name

Derventio

TrickyDicky101 wrote: »

This certainly isn't the case with all insurance policies - my father died recently and both I and my mother were named drivers and the policy was transferred over into her name without difficulty.

Thanks for your reply. This would have been a much fairer approach. I wasn't offered that option in favour of immediate cancellation. I will be taking this up with the insurance broker (RAC Insurance).

Derventio

Quentin wrote: »

Your broker has mislead you over this 30 days grace given by insurers compared with policies arranged by brokers.

Your broker should be able to help you get the vehicle legal again otherwise you need to sorn it now or tax it/insure it in your name

Sorry I did not intend to suggest that all insurance companies offer grace periods and all brokers don't. My point was that insurance companies have a different approach. I would simply like to see that changed so that all car insurance will offer the same approach to minimise hassle for those left dealing with the estates of loved ones.

Derventio

ciderboy2009 wrote: »

What insurance company won't let you take out insurance because your not the registered keeper?

I've never had a problem with that.

The broker was emphatic that I could not insure the car with them unless I was the registered keeper. Maybe something else I need to take up with them then!

Norman_Castle

Derventio wrote: »

The broker was emphatic that I could not insure the car with them unless I was the registered keeper. Maybe something else I need to take up with them then!

Maybe you need a different broker.

HHarry

In a similar situation recently.

MoreThan did give a 45 day grace period - but phoned weekly to hurry me along to make alternative arrangements.

It is possible to get insurance when you're not the registered keeper, but you may pay more. The comparison sites ask this question when getting quotes.
In the end I registered the car in my name - it was easier to tax, insure and sell.

Just to add a further problem, the minute you inform the DVLA of the death they will remove your Mother as the registered keeper and refund the road tax. And you can't tax or SORN the car until it has a new keeper.

dacouch

It's obviously not an uncommon issue that the policyholder dies.

The standad way of dealing with it is for the Policyholders name to be changed to "The executor of the late Mrs X". This is an acceptable legal term and allows the executor of the estate to deal with the sale of the vehicle.

It also allows any family members reliant on the vehicle time to adjust.

I would suggest the Executor of the Estate makes an "Official Complaint" about the matter and also that the Insurers cancelled the policy without giving the contractually agreed seven days notice in writing. They may try and argue that the contract ceased on the death of the policyholder but it is still an asset of the estate so they should still abide by the contractual terms.

A well worded, concise and polite complaint is likely to result in an ex gratia payment to the estate and may prompt them to treat their customers fairly

Norman_Castle

dacouch wrote: »

The standad way of dealing with it is for the Policyholders name to be changed to "The executor of the late Mrs X". This is an acceptable legal term and allows the executor of the estate to deal with the sale of the vehicle.

Is the car then still insured as per the previous insurance with regards to loss or damage with named drivers allowed to drive it?
If there are no named drivers who can drive it?