Car ownership following death

[gumboil]

My neighbour's mother died a couple of weeks ago. The mother owned and was the registered keeper of the car and the daughter was a named driver on the insurance policy. Financially, the mother and daughter had each paid half of the cost of the car and the outstanding HP was paid off a few months ago. No formal written details of this informal arrangement are in existence.

My neighbours father is still alive and remains living in the family home. Both he and his wife were married. Some time ago, they made wills under the guidance of a solicitor leaving their estate to the other partner in the event of death.

The dilemma my neighbour has at the moment has many implications. Firstly, as she sees it theoretically, the father is now the owner of the car as he is the next of kin as his wife was the registered owner. Secondly, she knows that the insurance company should be notified of the death, but is terrified of doing so in case they say that she cannot drive the car until probate is complete - this could months. This will severely inconvenience her and other family members. Thirdly, she fears that any change in the insurance policy will incur administration fees.

There is absolutely no malice between the father and daughter, but right now in hindsight, it would have been so much easier if the car ownership had been transferred to the daughter during her mum's terminal illness. Someone has even suggested halting the ownership predicament by signing the mother's name on the transfer documentation and submitting them to the DVLA claiming that the document was signed whilst she was still alive with the approval of her dad.

She abhors anything illegal but is desperately worried and doesn't even feel right now that she's covered by insurance. Raising the issue with the insurance company may open a right can of worms.

[Canary42]

Not raising it with the insurance company will potentially open a bigger can of worms. They should be told.

[gumboil]

Incidentally, her dad has no problem with transferring registered ownership from himself to his daughter following and understands his wife would not have seen the daugther without the car. He is just as anxious to make sure the daughter stays on the road but is reluctant to do anything illegal. The local probate office are sending out documents but goodness knows how long the process will take.

[TonyV]

is it ownership or insurance? V5 just shows registred keeper. If insurance details are involved - I would advise them

[gumboil]

Thanks Canary42.

[Buenchico]

The contract of insurance was between the mother and the insurance company. The mother's death automatically cancels that contract. The insurer should be advised of the death and a refund of the unused part of the premium sought. (The insurer will probably pay that to directly to the widower, but it might be necessary to wait until probate has been obtained).

If the widower plans to become the main driver of the car, he should seek a new policy with ANY insurer (not necessarily with the old one), adding his daughter on as a 'named driver'. If the daughter is to become the main driver of the vehicle, she should also seek a new policy in her own name (again, with ANY company).

There should be no reason for any delay in obtaining new insurance cover. It can be obtained instantly, either online or by phone. The name of the registered keeper is not relevant but it would make sense for either the widower or the daughter (whoever is most likely to drive the car) to get the vehicle transferred into their name. (The legal owner of the car will be the widower, unless he chooses to give it to his daughter, But there's no reason why the legal owner and the registered keeper should be the same. Millions of company car drivers have their name recorded as the registered keeper - so that speeding tickets &c can be sent directly to them - even though they don't own the vehicles).

Allowing a bit of time to look at some of the insurance comparison websites, everything can easily be sorted out within half an hour or so, so it's hardly a major problem.

Chris.

[gumboil]

Thanks Chris. The widower has his own car which has his wife as a named driver. His policy is with the same insurance company. He's got no desire to own or drive the car that was in his wife's name.

[djkeithhurley]

We were in the exact same situation. My wife was a named driver on her mothers insurance. When we contacted the insurance company to inform them of the death they told my wife she would still be insured on the car for 30 days whilst we sorted out what we wanted to do with the car - there was no additional charge for this, the company understood situations like this occur and we're exceptionally understanding. This has allowed us to make a decision about the car. Whilst we were deciding a further 30 day cover notice was sent to us without us requesting it and again at no further expense to ourselves. Our advice - DO DISCUSS WITH INSURANCE COMPANY. "More Than" insurance we're brilliant.