How long do you have to keep car insurance records?

 

How long do you have to keep car insurance records?

Buying insurance for your car is important and it is your responsibility to keep your car insurance records. Read this article to note how long you should keep your car's insurance records.

It's important to know how long you need to keep four-wheel insurance records. In some cases, you can get rid of documents but need to keep some documents longer.

How long do you have to keep car insurance records?

There are a number of documents that need to be saved and kept longer. The documents to keep are:

1. Car Insurance Card

This card must stay with you when your car is turned on. You must have access to a digital insurance card and keep a hard copy as support if you forget your phone. In some states, it is necessary to have a card in your car. You need an insurance card if you have an accident because it contains many details such as policy number, registration number and other relevant information.

2. Auto Insurance Policy Recognition Page

The confirmation page includes a summary of policy coverage and discounts, as well as your name and address. You must keep this document in a safe place in order to receive a new document.

3. Documents related to the claim

If you have an open claim, keep all repair invoices, receipts and other papers with you. You can dispose of these documents after receiving a check and officially closing the claim.

4. Monthly billing statement

You must keep your billing data for tax purposes if you use your car for business or have a home office. In case you audit them, you have to show your invoices over the past seven years.

Documents you don't need to keep

Your main policy document is a multi-page document containing all the details about your policy, discounts, coverage, etc. Many people stick to these pages but it is not necessary because many insurance companies provide digital access to these documents. If your policy expires and you no longer pay for it, you can ignore these documents. Many banks do not return your cancelled checks but if your bank does not, you can tear up the checks once you have reconciled them with your account.

How long to keep insurance records

You don't need to keep actual policy documents for more than a year. 

Once you have a new policy, you can perpetuate the old policy.

You can ignore any records of policies that are no longer in effect.

If you have an open claim related to an accident, or there is a possibility that a lawsuit will be opened against you by someone else, you need to keep all the insurance policies and anything related to the incident.

Take away

If you anyway ignore your current policy, you don't have to worry. Your insurance company will have all copies related to your insurance and you can access them online at any time. But you have to keep many documents safe with you. Keep your policy documents to make sure there are no more costs applied to the claim.

You may also want to read: 

Personal Accident Car Insurance Coverage: A Useful Guide

Reasons why car insurance companies can reject your claims

Disclaimer: This article is published in the public interest and is intended for public information purposes only. Readers are advised not to rely on the contents of the article as crucial in nature, and further research or expert consultation should be conducted in this regard.