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Car insurance with death benefits

Loved ones can use this car insurance payout to cover funeral expenses.

With car insurance, accidental death benefits (ADB) coverage pays a modest death benefit in the event of a fatal car accident. Even with its low payout, it can take some financial pressure off your family — and many companies offer it as a free perk included with your policy. This coverage is sometimes called automobile death indemnity coverage.

What does a car insurance death benefit cover?

Depending on the state you live in, ADBs can be a lump sum payment for:

  • Funeral and burial expenses
  • Medical bills incurred before death
  • Loss of wages up until the day of death

Should I look for car insurance with death benefits?

Accidental death benefits coverage can keep your loved ones from paying out of pocket for end-of-life expenses. For reference, the average funeral costs over $6,700. However, adding this car insurance coverage works best if you don’t qualify for life insurance, need a cheaper life insurance option or can find it as a free perk.

Otherwise, life insurance or accidental death and dismemberment insurance typically offers a higher payout and can apply to more situations than a fatal car accident.

You could also get coverage for medical bills by adding personal injury protection or medical payments coverage to your car insurance policy.

How to claim the death payout after a car accident

The steps to make an accidental death benefit claim will vary by insurance company, but this is the general process.

  1. Contact your insurance agent. As soon as possible after an accident, call your insurance provider even if there isn’t a fatality.
  2. File the claim. Keep in mind, these policy riders tend to have a time limit. For example, if the injured doesn’t die within 90 days of the accident, then the coverage can be denied.
  3. Provide documentation. You’ll probably need to send copies of the police report and death certificate to the insurance provider. The insurance company may also require a post-mortem exam before they agree to pay the benefit.
  4. Prove your relationship to the deceased. Death benefits are typically paid to the spouse of the deceased, or to the parents in the death of a minor. Depending on the policy, the benefits may also be paid to the deceased’s estate.
  5. Receive payment. You will either receive your payout as a check or direct deposit within the timeframe stipulated in the policy.

Reasons that car insurance won’t pay the death benefit

Certain circumstances may cause an accident to be excluded from coverage. Some common exclusions to this coverage include:

  • Suicide. This coverage only includes accidental death. If suicide is suspected, the insurance company might require an investigation — potentially including a post-mortem exam — to prove they have to pay.
  • Crime. If the accident happens as the result of criminal activity, the benefit won’t be paid.
  • Dangerous activities and hobbies. If the accident occurs during a dangerous activity or hobby, such as illegal street racing, it will be excluded from coverage.
  • Occupational accident. If the fatal accident happens while on the job, it may be excluded. Exceptions to this exclusion may include taxi drivers and other professional drivers, depending on the policy and the state where you live.
  • Prior disease or injury. If the death occurs because of an existing condition that’s not related to the car accident, your insurance won’t pay out.

Compare car insurance with death benefits

This coverage is usually offered as a free perk or add-on to your existing insurance policy. Compare the overall costs and benefits of companies with death benefits and choose Get quotes to see your customized rate.

Name Product Roadside assistance New car protection Accident forgiveness Safe driver discount Available states
USAA
Optional
Yes
All 50 states & DC
Affordable car insurance with highly rated customer service. Only available to military members and veterans and their family.
Allstate
Optional
13%
All 50 states
Your dedicated agent can help you find the best savings with multiple discounts and rewards programs.
Metromile
Optional
49%
AZ, CA, IL, NJ, OR, PA, VA, WA
Pay only for the miles you drive, plus enjoy app services you won’t find everywhere like claims and car health updates.
Liberty Mutual
Optional
30%
All 50 states & DC
Earn free accident forgiveness after five years claims-free and customize your policy anytime online at the tap of a button.
Root
52%
Available in 31 states
Track your driving to receive a low rate that reflects your driving skills, and enjoy a fully app-based policy experience.
Branch
Optional
No
AZ, CO, IL, IN, MD, MO, OH, OK, TX and WI
Benefit from this online-based startup’s steep savings and convenient online quotes and claims.
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Compare up to 4 providers

Bottom line

Accidental death benefit coverage can offer real peace of mind to road warriors and other drivers who spend a lot of time in their cars. But it’s important to make sure you’re not duplicating coverage that already exists in your insurance policy.

As always, take the time to research your options and compare insurance policies before you decide.

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