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No one is automatically covered unless you ad them to the policy. If someone passes away with an active auto policy and a vehicle, the administrator of the estate will have the right and responsibility to take care of the policy. This person needs to contact the insurance agent and they can assist in taking care of any necessary changes that are needed. The name needs to be changed to the estate and if anyone is driving they need to be listed as drivers, and if it will be parked elsewhere the garaging address needs to be changed.
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