Keeping well-organized records of your auto insurance documents is essential for future references. If you are wondering how long you should keep your car insurance records, the answer typically depends on the type of document we are looking at. Many drivers battle with the decision of how long they should retain their car insurance documents, which is why we are here to guide you.
Policies, receipts, claim history, and correspondence with your insurer are typical examples of car insurance records that can come in handy in certain situations. Let’s say you need to submit a claim or confirm coverage. You can check your policy records to make the process easier.
How Long Should You Keep Your Car Insurance Records?
As mentioned earlier, the type of insurance document largely determines how long it should be kept. There are certain documents that are classified as important, while others are less important. Before disposing of some of your car insurance documents, always check their importance.
Notwithstanding, it is advisable to keep all your car insurance documents until the expiration date of the policy. If you file a claim that is yet to be settled by your insurer, do not dispose of or shred your insurance records. You may need to make reference to some of them to support your claim if any issue were to arise.
Insurance Documents You Should Keep
There are certain insurance documents you must retain until the end of your car insurance policy, such as;
• Your insurance ID card
The main document that serves as proof of your car insurance is your insurance ID card. Discarding this document may mean that you no longer have coverage. If you are involved in an accident, the police will request you to show proof of insurance. If you are unable to, it can attract a severe penalty. In essence, as long as your policy is active, ensure you keep your ID card properly.
• Declaring page of your car insurance policy
This document is one of the most important records policyholders must keep intact. It allows you to have a glimpse of the content of your policy, including the type of coverage, limits, and exclusions. Endeavor to keep the declaring page of your car insurance policy in a safe place where it can be easily accessed, such as a drawer or file cabinet.
• Documents relating to claims
Another essential car insurance record you should keep are documents pertaining to claims you have filed. In the event of a claim, pictures and videos that serve as supporting documents go a long way in making the claim process faster. The only time you can freely dispose of documents relating to a claim is when it is processed and your insurer has reimbursed you for related costs.
• Monthly billing statement
Keeping your monthly bill payment until your policy expires is an ideal option. There are times where you need to keep your payment statement for some years, especially if it is connected to a business. Ensure your billing statement is kept in a safe place until it has been processed by the insurer.
Insurance Documents You Do Not Need To Keep
• Main policy document
You do not necessarily need to keep your main policy document if you can gain access to it digitally on your account. The majority of policyholders often keep their main policy document for the sole purpose of renewal. If your insurer does not provide access to this document on your online account, you may decide to keep them until your policy has expired.
• Canceled checks from paid premiums
Since most banks no longer return cancelled checks to their customers, you can dispose of yours if you have any. Before heading to the shredding machine or trash can, ensure you have performed the due diligence of confirming that the check is now aligned with your account. Once that is done, you can now discard the cancelled check.
• Previous insurance ID cards
Your current insurance ID card is of more importance than the previous ones, since it shows the specifics of the coverage you are benefiting from. Most insurance ID cards last for a period of 6 months to one year. Once it has expired, you no longer need to keep them. You can either dispose of them in a trash can or shred them.
What’s the Best Way to Keep My Car Insurance Records?
For efficiency, it is advisable to keep digital copies of your car insurance records. To be on the safer side, also make hard copies of important documents. This would come in handy in situations where you can’t easily access the digital ones.
However, for hard copies of insurance records, ensure it is kept in a safe and secure place. On the other hand, you can maintain the safety of digital documents by employing drive and cloud-based storage methods.
How to Properly Dispose of Old Car Insurance Records
If you want to preserve your personal data and safeguard your privacy, it is essential to dispose of old car insurance records properly. Start by gathering all old insurance documents, such as policy statements, invoices, and payment receipts. Before discarding these documents, ensure that all sensitive numbers, such as your personal information, policy number, and financial data, are totally destroyed.
The best way to dispose of old car insurance records is by making use of a shredding machine. By shredding these documents, rather than just throwing them in a trash can, it guarantees protection against illegal access to your information. For digital records, delete them from your device and empty the recycle bin as well. This is to ensure that it is not recovered by the wrong hands.
FAQS
Can I throw away old insurance policies?
Yes, you can discard old insurance policies after renewing them or when you switch to another insurance company. Since you have a new auto insurance policy, you will most likely need the old ones, so they can be disposed of.
Do I need to keep old insurance claim paperwork?
It is advisable to keep all documents pertaining to a claim until it has been processed. If your policy has not expired or you are yet to receive the payments you are supposed to from your insurer, don’t discard your claims paperwork.
How can I keep important documents safe?
The best way to keep your car insurance records is by storing them in a fire- and water-resistant environment. If your home were to experience flooding or other weather-related issues, keeping them in safe locations will prevent them from getting damaged. Another way to also keep your documents safe is by storing the digital ones in a flash drive or other safety devices.
