Why Should You Keep Your Car Insurance Records For So Long?
Why Should You Keep Your Car Insurance Records For So Long?
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It's critical to understand how long your four-wheeler insurance records must be kept. Some documents can be thrown away, but others must be kept for a longer length of time. Keeping track of your financial documents is both a need and a desirable habit to develop. Whether they are digital or physical papers, private and financial records should be kept where they are easily accessible. Even your car insurance policy should be kept in a safe place where you can get to it at any time, especially if authorities ask for it.
How Long Should Car Insurance Records Be Kept?
There are a few papers you should retain and maintain for a longer period. You should preserve the following documents:
Insurance Cards For Automobiles
This card should be maintained in your vehicle at all times. You should have a digital insurance card and a print copy on hand in case you misplace your phone. In certain states, having a card in your automobile is required. If you have an accident, you will need your insurance card since it contains various facts such as your policy number, registration number, and other important information.
Auto Insurance Policy Declaration Page
In addition to your name and address, the declaration page contains a description of your policy's coverages and deductibles. You must keep this document in a secure location until you receive a replacement.
Documents Associated With A Claim
Keep any repair invoices, receipts, and other information with you if you have an open claim. After you get payment and the claim is legally closed, you can discard these records.
Statement of Accounts for the Month
If you use your automobile for work or have a home office, you should save your billing bills for tax purposes. If you are audited, you must produce all of your bills over the previous seven years.
Documents that Aren't Required To Be Kept
Your main policy document is a multi-page document that contains all of the information regarding your insurance, including discounts, coverage, and so on. Many people save these pages, but many insurance companies now provide digital access to these records. You can get rid of this paperwork if your coverage has ended and you are no longer paying for it. Many banks do not return canceled checks, but if yours does, trash the checks once they have been reconciled with your account.
How Long Should Insurance Records Be Kept?
- Your actual policy document does not need to be kept for more than a year.
- You can discard the old policy once you've created a new one.
- Any records from policies that are no longer in effect can be discarded.
- You must save all insurance paperwork and anything connected to the accident if you have an open claim due to an accident or there is a risk that another person would file a claim against you.
Take Away
You do not need to be concerned if you decide to cancel your current coverage. All of the documents relating to your insurance will be kept by your insurance carrier, and you will be able to access them online at any time. However, you must carry a large number of documents with you. Keep your insurance documentation until you're certain the claim will not incur any further fees.
Also read: Myths About Car Insurance And The Reality
