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What's going to happen to my car loan if I die?
I retired a few years ago, and I’m getting to the point in my life where I need to think about what happens after I die. I just got a new car about two years ago. What will happen to the loan on my car if I pass away?
Jack Walsh · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Thinking about what happens if you die can be scary, but it’s wise to understand so that you can plan appropriately.
Unlike other debts, your
car loan
is not forgiven if you die. It will have to be taken over or paid off.You can read through the death clause in your loan agreement for information specific to your loan. But in general, after the borrower dies, the debt is commonly settled by:
- Using funds from your estate to pay off the loan before selling the vehicle or passing it on to your heirs
- Having a family member take over the loan payments
- Letting the vehicle be repossessed
To ensure the loan and vehicle are handled how you’d like, you should explain what you want to be done in your estate plan or will. If you do not outline your wishes before passing, the executor of your will and estate will determine what should be done.
It would also be wise to make sure the title, registration, and
car insurance
information is readily accessible so that canceling your insurance
and transferring the title
can be easily accomplished when the time comes.Finally, while you’re still enjoying life and retirement, you can make owning a new car more manageable by using
Jerry
for all your insurance needs.Jerry is an insurance comparison app that shops for low prices with over 50 different insurance companies for free. You will get quotes in seconds, can make changes at any time, and if you ever have any questions, agents are just a text away! The average Jerry user saves $879 a year on car insurance.
View full answer
- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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