Depending on the type of auto insurance paperwork, you may want to pause before heading to the paper shredder or your digital bin. In general, you should keep all insurance records until your policy expires and outstanding claims are settled. For more information, Bankrate’s team of insurance experts put together this record-keeping best practices guide that explains what documents to keep, how long to keep them, and safe disposal methods.
Insurance documents you should keep
It’s a good idea to keep your auto insurance statements and related documentation until your auto insurance policy expires. These records may include:
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Your insurance ID card. This document serves as proof of insurance. It must be provided when requested by a police officer or when you are involved in an accident in many states. Keep this card for the duration of the policy, either in your wallet, glove box or center console, or as a digital file that you can easily access on your smartphone.
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The declarations page of your car insurance policy. An insurance declarations page gives you a snapshot of your policy’s coverage types and limits, as well as details of what may be excluded from your policy. Keep this document in a safe and accessible place — such as a file cabinet or desk drawer — until the policy period is no longer active and all open claims during the period have been resolved.
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Documents related to a claim. Repair receipts and accident photos are essential documents to keep. Having them can go a long way in ensuring that your auto insurance provider processes your claim accurately. You should generally dispose of these documents only after your claim has been processed and you have received your settlement.
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Your monthly billing statement. It may be a good idea to keep monthly statements until your payment is processed or the policy period ends. If your policy applies to a business, speak to your tax professional first, as they may recommend keeping statements for several years. Statements should be kept in a secure place, such as a locked cabinet or drawer.
Insurance documents you don’t need to keep
Determining how long to keep old insurance policies and other records also involves knowing what you can throw away and when. Here are a few items you don’t need to keep indefinitely:
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Your primary policy document. This is the multi-page document that includes all the details of your policy limits, discounts, coverage, policy endorsements and more. Many people choose to keep these pages until they renew their policy, although it may not be necessary if your insurer provides digital access to these documents through your online account. If your insurer doesn’t, hold off on all paperwork until you receive a new policy packet in the mail when you renew. Once your policy has expired and you have paid it in full, it is safe to dispose of these documents.
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Canceled checks from premiums paid. Many banks no longer return your canceled checks. If yours does, you can destroy the checks after reconciling them with your account.
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Previous ID cards. The only insurance ID that matters is the one that shows your current period of coverage, usually active for six months or one year. Expired ID cards can go to the paper shredder — out with the old, in with the new!
Find out more: How to read a car insurance policy
How long to keep insurance records
How long you should keep insurance statements depends on whether you have open claims and how you use your vehicle. Some of the most extensive insurance documents, such as the full policy jacket (also known as the policy form), do not need to be kept for more than one year.
Once you have a new policy in hand, the old one can usually be dropped—unless there’s an open claim that still needs to be resolved. In this case, it is a good idea to keep all documents, including receipts for car repairs and medical care, until the claim is settled and all payments are received.
If your policy is for a business, you may need to keep insurance documents for tax purposes for up to seven years. Consult your tax professional for advice. Storing insurance documents in a climate-controlled location can prevent mold or fading, and a waterproof and fireproof safe can protect them even more. Once it’s time to dispose of the documents, a cross-cut shredder is one of the best ways to avoid identity theft because of the sensitive information the paperwork may contain.
If for some reason you accidentally throw away the current policy documents, don’t worry. Your insurer will have copies of all documents on file and you may also be able to access them online. A quick call to your agent or customer service should be enough to get you a new copy to replace the one you discarded.
How to properly dispose of old insurance policies
Identity theft is on the rise in the U.S., according to the Insurance Information Institute. Your policy documents may contain names, addresses, policy numbers and other personal information, and an enterprising thief can use this information for personal gain if your documents are found in the trash or in a landfill. In general, you should always shred anything that has your name or identifying details on it.
A small home shredder should be fine for disposing of old insurance documents. A cross-cut shredder will cut pages in two directions, making it difficult for would-be thieves to get information from discarded documents. If you don’t have a home shredder, some office supply stores offer shredding services, and many local banks or companies host free shredding days.
Frequently Asked Questions
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What is the best car insurance company?
There is no single “best” car insurance company. If there was, everyone would probably buy coverage from it. Instead, insurance companies use proprietary algorithms to create personalized quotes for the types of drivers they’re trying to attract as customers. For example, some providers offer more competitive rates for high-risk teens. So to find the best car insurance, you should consider shopping around to identify the company that fits your wants and needs.
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Should you keep old insurance policies?
When you purchase a new policy when renewing or switching companies, you can discard old policy documentation once you receive the new documents. However, you should keep old insurance policies if there is an open claim or the possibility of an open claim. And if you’re renewing, you may want to keep your billing statements and declarations page from your old policy. Finally, remember that you always need a valid car insurance card when you drive.
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Do you need to keep old insurance claim documents?
You should keep old insurance claim documents until the claim is officially closed, the policy expires, and you receive all the payments you are entitled to. Once the claim is complete, it is safe to shred the documents in a cross-cut shredder. Before shredding, you can scan the documents or photograph them to store them digitally or in the cloud if you like.
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How can I keep important documents safe?
Storing your insurance documents in a fire and waterproof lockable box and/or in a climate controlled space is usually a great way to protect them from many home and weather hazards. Avoid storing loose documents in your basement in case your home experiences a flood. You may also consider storing documents on a flash drive or similar device. Alternatively, for a small fee, sites like Dropbox and iCloud will store digital documents online so they’re accessible no matter where you are or what device you’re using.
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