What happens to my car loan if I die?

Not to be morbid or anything, but I just want to know if car loans are forgiven when you die. If not, who has to pay for it? I'm single with no kids.

Answer
Death is a celebration of life, right? No worries about the question; it’s important to know the answer to protect the financial well-being of your loved ones.
Car loans, like certain other types of debt, aren’t forgiven when you pass away. Your estate inherits the loan. The estate executor can either use your savings or assets to pay it off or sell the car to settle the debt.
If a spouse or loved one wants to keep the car, they can take over the car loan and assume the monthly payments.
While your estate is on your mind, make sure your assets are protected by great insurance—without overpaying for it. The Jerry app can help you quickly and easily assess your insurance needs and compare policies and prices. Plus, if you ever have any questions, Jerry’s friendly agents are just a text or phone call away!
Eric Schad
Answered on Nov 15, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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