What happens to your car loan if you die?

My brother is in poor health. I have no other siblings and my parents are deceased. What happens to my brother's car loan if he passes away?

Sorry to hear that your brother is in poor health, but maybe you can get a bit of solace by sorting out this car loan situation.
Unlike some other types of debt, a car loan is not forgiven upon death. Instead, it passes on to the estate of the deceased. Since you’re likely going to be the executor of the estate as you have no close relatives, you will have to decide on the vehicle.
You have two options:
  • Sell the car and use the proceeds to pay off the loan
  • Keep the car and assume the rest of the loan
If you sell the car, make sure to cancel the car insurance coverage, but if you keep the car, make sure you don’t blow money on expensive car insurance. Instead, use the Jerry app to compare personalized quotes from over 50 top insurers and get the best deals delivered to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance!
Eric Schad
Answered on Nov 24, 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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