Taking over car insurance after a death successfully: your comprehensive guide
02.04.25
5
Minutes
Katrin Straub
Managing Director at nextsure
A death brings many tasks with it, including sorting out motor vehicle insurance. Find out here how to properly take over the motor vehicle insurance of a deceased person and which pitfalls you should avoid. We’ll show you the necessary steps and give you practical tips.
The topic in brief and concise terms
The motor vehicle insurance passes to the heirs in the event of death; they must inform the insurer immediately and, if necessary, have the vehicle re-registered.
Heirs enter into the existing contract, often without a special right to terminate, and the premium may change based on personal characteristics.
The deceased’s no-claims discount can often be transferred to close relatives and help save costs.
Immediate measures after a death: The first steps regarding the vehicle
After a death, the heirs must take care of the deceased's vehicle without delay. The existing motor vehicle insurance policy initially continues, as it is tied to the vehicle. Notify the insurer of the death immediately; this is an important obligation. To re-register the vehicle with the registration authority, you will need an eVB number from the insurer. This re-registration should take place within six months to avoid jeopardising insurance cover. Failure to comply with the reporting obligations can result in a fine of up to 15 euros. Clarify who inherits the vehicle so that you can plan the next steps. This first step is crucial for the further course of the transfer.
Mastering contract takeover: transferring motor insurance to the heir
If an heir takes over the vehicle, they automatically enter into the existing insurance contract. In this case, the heir usually does not have a special right to cancel. The insurer then adjusts the policy to the new policyholder. This may lead to a recalculation of the premium based on the heir's details. The following documents are generally required for the change of registration with the insurer:
Death certificate of the previous policyholder
Certificate of inheritance (not always mandatory, but often helpful for identification)
Vehicle documents (registration certificate Part I and II)
Where applicable, the heir's ID card
Information on the future use of the vehicle (e.g. annual mileage)
Submitting complete documents significantly speeds up the process of contract adjustment. The transfer of no-claims bonuses is often possible. The exact conditions for taking over car insurance in the event of death should be clarified directly with the insurer. Careful preparation for this stage ensures a smooth transition.
Keeping costs in view: recognising contribution adjustments and savings potential
Taking over a motor insurance policy after a death can lead to an adjustment to the premium. Factors such as the heir's no-claims class, place of residence (regional class) and annual mileage influence the new premium amount. An heir with a less favourable no-claims class may have to expect higher costs. Conversely, the premium may also fall if the heir, for example, has a higher no-claims discount. It is advisable to review the new terms carefully and compare them with quotes from other insurers before continuing the contract long term. Typical cost factors are:
No-claims class of the new policyholder
New regional class for a different place of residence
Adjusted annual mileage (e.g. from 5,000 to 15,000 kilometres)
Changes to the driver circle (e.g. adding a new driver)
Our expert tip: Check the possibility of taking over the deceased person's no-claims discount, especially if you are a close relative. This can often be applied for within twelve months of the death. A detailed analysis of the cost structure is essential for a well-informed decision.
Understanding the legal framework: legal provisions and obligations for heirs
Inheritance law clearly states that, upon the death of a person, their estate as a whole passes to the heirs (§ 1922 BGB). This also includes the vehicle and the associated motor vehicle insurance policy. The motor vehicle insurance transfers to the heir pursuant to § 95 of the Insurance Contract Act (VVG). The heir assumes the rights and obligations of the policyholder. An important obligation is to notify the licensing authority immediately of any changes to the keeper's details in accordance with § 13 of the Vehicle Registration Ordinance (FZV). The vehicle must be re-registered promptly; a period of six months is often mentioned. Knowledge of these legal foundations is crucial to avoid mistakes when taking over motor vehicle insurance after a death. Also note the provisions on the payout of other insurance policies. Compliance with these regulations protects against legal disadvantages.
Special situations and expert advice: What to do in the event of a sale or transfer?
Not every heir wants to use the vehicle themselves. If the car is sold directly by the heir or passed on to a third party (who is not an heir), the new keeper can choose their insurance freely. In this case, the heir is under no obligation to continue the old contract. The sale ends the heir’s previous insurance obligation once the vehicle has been re-registered. If the vehicle is re-registered to another heir or to a third party, the rules for a standard change of keeper apply. Our expert tip: Clarify at an early stage what should happen to the vehicle so that the appropriate insurance-related steps can be taken. Good preparation can help avoid many later problems. In complex co-heir arrangements or where there is uncertainty about the role of the policyholder, professional advice is advisable. The right strategy depends very much on the individual situation.
Secure your no-claims discount: make the most of transfer options
A common question concerns the transfer of the deceased person's no-claims discount (SFR). Close family members such as spouses or children can often take over the SFR. Most insurers allow this within twelve months of the death. An important requirement is often that the person taking over has already used the vehicle regularly, or has their own driving licence that justifies the transfer of the accumulated years. You can only transfer as many claim-free years as you could yourself have accumulated since obtaining your driving licence. The application for SFR 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 substantial premium savings of often more than thirty per cent. Check your insurer's conditions for transferring the SFR carefully. This is an important lever for cost optimisation.
Re-registering the inherited vehicle is an essential step. The registration authority must be informed of the new keeper. For the re-registration, you will usually need the following documents:
Registration certificate Part I (vehicle registration document)
Registration certificate Part II (vehicle title)
eVB number from the new keeper's insurance
Identity card or passport of the new keeper
Certificate of inheritance or will as proof of entitlement as heir
SEPA direct debit mandate for motor vehicle tax
If applicable, the old number plates when changing plates
There is no explicit legal deadline for re-registration; however, it should be completed without delay, often within a few weeks, to avoid fines. Re-registration within six months is also relevant to the continuation of motor vehicle insurance. It is best to clarify the exact requirements in advance with your local registration office. Correct re-registration ensures the vehicle can continue to be used legally.
Inheritance tax and motor vehicles: What heirs need to know
An inherited vehicle is generally subject to inheritance tax. The amount of tax depends on the value of the vehicle and the degree of relationship to the deceased. However, there are personal allowances that often mean that no tax, or only a small amount of tax, is due on a single car. For spouses, the allowance is five hundred thousand euros, for children four hundred thousand euros. For movable tangible assets such as a car, heirs in tax class I also have an additional allowance of up to twelve thousand euros. Our expert tip: Determine the correct value of the vehicle and check your individual allowances to assess any potential tax liability accurately. A change of policyholder has no direct impact on this. Taking tax aspects into account rounds off the process of taking over a vehicle.
Request an individual risk analysis now: Have your insurance situation reviewed free of charge and receive concrete optimisation suggestions.
More useful links
Wikipedia offers a comprehensive overview of German inheritance law.
Gesetze im Internet contains Section 1922 of the German Civil Code (BGB) on universal succession in inheritance law.
The Consumer Advice Centre provides information on important aspects of renouncing 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.
The German Lawyers' Association provides information from the Inheritance Law Working Group.
Destatis provides current statistics on deaths and life expectancy in Germany.
FAQ
Do I have to take over the car insurance as the heir?
Yes, if you inherit the vehicle and want to continue using it, you automatically enter into the existing insurance contract. The contract will then be adjusted to you.
Does the insurance premium change upon takeover?
Yes, that is very likely. The premium is recalculated based on your personal details (e.g. no-claims bonus, age, place of residence) and may therefore increase or decrease.
What is an eVB number and what do I need it for in the event of a death?
The electronic insurance confirmation (eVB number) is proof of existing liability cover. You need this from the insurer in order to register the vehicle in your name at the vehicle registration office.
Can I sell the deceased’s car without taking over the insurance?
If you sell the car directly as the heir, the buyer must take out a new insurance policy and re-register the vehicle in their name. The old policy then ends when the registration is changed. You do not need to continue the policy yourself.
What role does the certificate of inheritance play when taking over the motor vehicle insurance?
The certificate of inheritance serves as proof of your entitlement to inherit in relation to the insurer and the registration authority. It is often, but not always, mandatory, but it does make the process easier.
What happens if the deceased person’s vehicle is taken off the road?
In the event of a final suspension, the insurance contract ends. In the event of a temporary suspension, the contract is transferred to a premium-free dormant insurance policy, usually for a maximum of 18 months.
