Auto Insurance Claims: Insurance Claim, automobile policy, coverage term


Question
My mom and I purchased a car. She is the primary on the note I acted as co-signer. She passed away recently from natural causes.
Will the car insurance cover the remaining balance on the car?

Answer
Don't know what you mean by "remaining balance", loan balance or balance of policy coverage term? If you are asking if the car insurance will pay off the loan balance because the insured passed away, I have never heard of such a feature in an automobile policy, unless there is a special endorsement for this.

The insurance will cover the cars used market value for as long as the premiums are paid up. You also need to notify the insurer that your mom passed away if she was named as an insured. I think the insurer is more concerned with who the drivers are on the car rather than who is making the payments. Read your loan papers and your policy and endorsements.