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Car Insurance Automotive Death Benefits

Car insurance automotive death benefits are a separate category of coverage included in some policies. When they are available to policy holders, the limits on this coverage are separate and distinct from medical payments coverage. The protection provided on these endorsements pays the driver or spouse some preset amount if one or the other dies in a car accident. In most cases these policies set aside enough to cover funeral expenses, but limits are adjustable. The benefits can be paid out to the surviving spouse, the children, or some other named beneficiary. The estate of the insured driver could also be paid. These limits can include separate amounts for every named insured on a policy. In a family full of drivers, for example, you could have coverage for every driver in the household included in the policy.

Auto Death Benefits Explanation

For car insurance policies, including business car insurance protection, that include automotive death benefits, similar wording is commonly found in the section detailing that particular part of the coverage. The insurance company typically states that it will pay the amount stated in the declarations page for the death of the insured driver that comes about as a result of an injury caused by a car accident. This injury must have been sustained while inside a car or while being struck by another vehicle while a pedestrian or on bicycle. In most cases, there is a time limit of 90 days after the accident for the death to be covered under the terms of these policies.

Death benefits coverage does pay for any members of the household that are on a car insurance policy, but everyone who is covered by these benefits has to pay a separate premium to qualify. In other words, for a couple or for a household full of drivers, each person named on the policy has to pay a separate premium for this particular coverage for their death to be insured. Other relatives, members of the household, or friends who might borrow the car even with your consent are not covered by this endorsement. As stated previously, in many instances, the death must occur within 90 days of the accident for the coverage to be in force; and in some cases where it is explicitly stated, that person must have been continuously totally disabled during the intervening time. This is, presumably, so the insurance company can avoid any chance of paying out on a death that the accident in question actually did not or might not have caused.

Exclusions to Auto Death Benefits

And of course, just like all good automobile insurance policies, death benefits also come with certain exclusions and limitations of coverage.

If the injury leading to death occurred while the deceased was in the process of working on or repairing a car; doing certain commercial work or work for charge as defined in the specifics of the mandatory car insurance policy; died as a result of suicide, died as a result of war, nuclear reaction, or contamination; died as a result of being struck by a railroad car or a farm tractor; or died as a result of injuries sustained while racing, there is generally no coverage on these types of policies. Different auto insurance companies may have their own specific lists of what is excluded from the coverage they offer on auto insurance death benefit plans, and it is important for consumers interested in these plans to fully investigate them and find out exactly what they cover and do not cover. It would be a shame to experience a death in the family and find out that it is not cover due to some unbeknownst limit or exclusion.

Automotive Death Benefit Payouts

The payment of indemnity on these policies will work according to the terms of the policy. As a general rule, the auto insurance company may have the right to take care of their liability under this special endorsement by paying the surviving spouse of the deceased, if that person was living in the same household as the insured driver at the time of the accident; the parent or parents of a minor who was unmarried at the time of the accident; or to the estate of the insured person if no other application of benefits applies. In most cases, on the terms of the policy in the section relating details on the payment of indemnity, the insurance company will include language on reserving the right to require an autopsy as long as it is not forbidden by law.

Car insurance automotive death benefits add value to an automobile insurance policy for a relatively low cost. Drivers who do not have life insurance are especially encouraged to explore this option as a way to help meet funeral expenses if they died in an accident.


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