How Long Should You Keep Car Insurance Records?
Purchasing insurance for your car is important and it is your responsibility to keep your car insurance records. Read this article to take a note on how long you should keep your car insurance records.
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It is important to know how long you need to keep your four-wheeler insurance records. In some cases, you can throw away documents but you need to retain some documents for a longer period.
How Long Should You Keep Car Insurance Records?
There are a number of documents that you should save and keep for a longer time. Documents you should keep are:
1. Auto insurance card
This card should be kept with you when operating your car. You should have access to a digital insurance card and keep a paper copy as a backup in case you forget your phone. In some states, it is mandatory to have a card in your car. You need an insurance card if you have an accident as it contains many details such as policy number, registration number, and other pertinent information.
2. Declaration page of Auto Insurance policy
The declaration page includes a summary of your policy’s coverages and deductibles, in addition to your name and address. You need to keep this document in a safe place until you receive a new one.
3. Documents pertaining to a claim
If you have an open claim, keep all the repair bills, receipts and other paperwork with you. You can dispose of these documents after you receive a check and the claim is officially closed.
4. Monthly billing statement
You should keep your billing statements for tax purposes if you use your car for business or have a home office. In case you are audited, you have to show your bills for the last seven years.
Documents that You Do Not Have to Keep
Your main policy document is a multi-page document that includes all the details about your policy, discounts, coverage, etc. Many people hold onto these pages but it is not necessary because many insurance companies offer digital access to these documents. If your policy has expired and you no longer are paying for it, you can discard these documents. Many banks do not return your cancelled checks but if your bank does, you can shred the checks once you have reconciled them with your account.
How Long to Keep Insurance Records
- You do not need to retain your actual policy documents for more than a year.
- Once you have a new policy, you can toss the old policy.
- You can discard any records from policies that are no longer in effect.
- If you have an open claim related to an accident, or there is a possibility that a claim might be opened against you by another person, you need to retain all insurance documents and anything related to the accident.
Take Away
If anyhow you discard your current policy, you need not worry. Your insurance company will have all the copies related to your insurance and you can access them online anytime. But you need to keep many documents safe with you. Keep your policy documents until you are sure there will be no more costs applied to the claim.
You may also like to read:
Personal Accident Car Insurance Coverage: A Handy Guide
Reasons Why Car Insurance Companies Can Reject Your Claims
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
