Successfully Transferring Car Insurance in the Event of Death: Your Comprehensive Guide
2 Apr 2025
4
Minutes
Katrin Straub
CEO at nextsure
A bereavement involves many tasks, including dealing with car insurance. Discover here how to correctly take over the car insurance of a deceased person and which pitfalls to avoid. We will guide you through the necessary steps and provide practical tips.
The topic in brief and concise terms
The motor vehicle insurance passes to the heirs in the event of death; they must promptly inform the insurer and, if necessary, have the vehicle re-registered.
Heirs enter into the existing contract, often without a special right of termination, and the contribution may change based on personal characteristics.
The transfer of the no-claims bonus of the deceased is often possible for close relatives and can save costs.
Immediate Measures After a Death: The First Steps Concerning Vehicles
Following a death, the heirs must immediately attend to the deceased's vehicle. The existing car insurance initially continues because it is attached to the vehicle. Inform the insurer of the death without delay; this is a crucial obligation. For re-registration of the vehicle at the licensing office, you will need an eVB number from the insurance company. This re-registration should be done within six months to avoid jeopardising the insurance cover. Failure to comply with the reporting obligations can result in a fine of up to 15 euros. Determine who inherits the vehicle to plan the next steps. This first step is critical for the subsequent process of taking over.
Mastering Contract Transfer: Transferring Car Insurance to the Heir
When an heir takes over the vehicle, they automatically enter into the existing insurance contract. An heir does not usually have a special right of termination in this case. The insurance company will then adapt the contract to the new policyholder. This may lead to a recalculation of the premium based on the characteristics of the heir. The following documents are usually required for the transfer with the insurance company:
Death certificate of the previous policyholder
Certificate of inheritance (not always mandatory, but often helpful for authentication)
Vehicle documents (registration certificate Part I and II)
Possibly the identity card of the heir
Information on future use of the vehicle (e.g. annual mileage)
The submission of complete documents significantly accelerates the process of contract adjustment. The transfer of no-claims discounts is often possible. You should clarify the exact conditions for taking over the car insurance in the event of death directly with the insurer. Careful preparation of this phase ensures a smooth transition.
Keeping costs in check: Identify contribution adjustments and savings potentials
Taking over a car insurance policy in the event of a death may lead to an adjustment of the premium. Factors such as the no-claims discount class of the heir, the place of residence (regional class), and annual mileage will affect the new premium amount. An heir with a less favourable no-claims discount may have to anticipate higher costs. Conversely, the premium may decrease if the heir has a higher no-claims discount. It is advisable to carefully examine the new terms and compare them with offers from other insurers before continuing the contract long-term. Here are typical cost factors:
No-claims discount class of the new owner
New regional class for a different place of residence
Adjusted annual mileage (e.g. from 5,000 to 15,000 kilometres)
Changes in the circle of drivers (e.g. inclusion of a novice driver)
Our expert tip: Consider the possibility of taking over the no-claims discount of the deceased, especially if you are a close relative. This can often be applied for within twelve months of the death. A thorough analysis of the cost structure is crucial for a well-informed decision.
Understanding the legal framework: clauses and obligations for heirs
Inheritance law clearly stipulates that upon the death of a person, their entire estate is transferred to the heirs (§ 1922 BGB). This includes the vehicle and the associated car insurance policy. The car insurance is transferred to the heir according to § 95 Insurance Contract Act (VVG). The heir assumes the rights and obligations of the policyholder. An important duty is the prompt notification of changes to the holder's data to the registration authority in accordance with § 13 Vehicle Registration Regulation (FZV). The re-registration of the vehicle must be done promptly; a period of six months is often mentioned. Understanding these legal principles is crucial to avoid mistakes when taking over car insurance following a death. Also, be aware of the regulations regarding the payout of other insurances. Compliance with these provisions protects against legal disadvantages.
Special situations and expert advice: What to do when selling or passing on?
The heir does not always want to use the vehicle themselves. If the car is sold directly by the heir or passed on to a third person (who is not an heir), the new owner can freely choose the insurance. In this case, the heir is not obliged to continue the old contract. The sale terminates the heir's previous insurance obligation as soon as the vehicle is re-registered. When re-registering to another heir or a third party, the rules of a normal change of ownership apply. Our expert tip: Clarify early on what should happen with the vehicle to take the right insurance steps. Good preparation can avoid many later problems here. In complex inheritance communities or uncertainties regarding the role of the policyholder, a consultation is advisable. The right strategy depends greatly on the individual situation.
Secure your no-claims bonus: Make optimal use of transfer options
A common question concerns the transfer of the no-claims discount (NCD) of the deceased. Close family members such as spouses or children can often take over the NCD. Most insurers allow this within twelve months of the death. An important requirement is often that the person taking over the NCD has regularly used the vehicle or has their own driving licence, which justifies taking over the experienced years. You can only take over as many claim-free years as you could have experienced yourself since obtaining your driving licence. The application for NCD transfer must be submitted in writing to the insurer, often together with the death certificate. Taking over a high no-claims discount can lead to significant savings on premiums, often over thirty percent. Make sure to inform yourself about the conditions of your insurance regarding the transfer of the NCD. This is an important lever for cost optimisation.
Vehicle registration after death: Navigating deadlines and necessary documents
Re-registering an inherited vehicle is an essential step. The registration authority must be informed of the new owner. Typically, you will require the following documents to re-register:
Registration Certificate Part I (Fahrzeugschein)
Registration Certificate Part II (Fahrzeugbrief)
eVB number from the new owner's insurance
ID card or passport of the new owner
Certificate of inheritance or will to prove heir status
SEPA Direct Debit Mandate for vehicle tax
Old number plates, if the plates are being changed
There is no specific legal deadline for re-registration, but it should be done without delay, often within a few weeks, to avoid fines. Re-registering within six months is also relevant for maintaining vehicle insurance. It's best to clarify the exact requirements in advance with your local registration office. Correct re-registration ensures the continued legal use of the vehicle.
Inheritance Tax and Vehicles: What Heirs Need to Know
More useful links
Wikipedia provides a comprehensive overview of German inheritance law.
Gesetze im Internet includes Section 1922 of the German Civil Code (BGB) on universal succession in inheritance law.
Die Verbraucherzentrale gives information on important aspects of disclaiming an inheritance.
Wikipedia offers a detailed article on motor vehicle liability insurance.
Gesetze im Internet provides the Insurance Contract Act (VVG) in its current version.
Der Deutsche Anwaltverein offers information from the Inheritance Law Working Group.
Destatis delivers up-to-date statistics on deaths and life expectancy in Germany.
FAQ
Do I have to take over the car insurance as an heir?
Yes, if you inherit the vehicle and wish to continue using it, you automatically enter into the existing insurance contract. The contract will then be tailored to you.
Does the insurance premium change when taking over?
Yes, that is very likely. The premium is recalculated based on your personal characteristics (e.g. no-claims class, age, place of residence) and can therefore increase or decrease.
What is an eVB number and why do I need it in the event of a death?
The electronic insurance confirmation (eVB number) is proof of existing liability coverage. You need this from the insurance company to register the vehicle in your name at the registration office.
Can I sell the deceased person's car without taking over the insurance?
If you sell the car directly as an heir, the buyer must take out a new insurance policy and register the vehicle in their name. The old contract ends with the re-registration. You do not need to personally continue the contract.
What role does the certificate of inheritance play in taking over car insurance?
The certificate of inheritance serves as proof of your entitlement to the inheritance in dealings with the insurance company and the registration office. It is often, but not always, mandatory, yet it facilitates the process.
What happens if the deceased's vehicle is decommissioned?
Upon permanent decommissioning, the insurance contract ends. In the case of temporary decommissioning, the contract converts into a contribution-free inactive insurance, usually for a maximum of 18 months.
