Should you keep your car insurance records and for how long?

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While opting for proper 3rd party insurance is deemed to be very important, safe-keeping the related documents and other proceedings is no different. One needs to keep their car insurance documents and other papers safe to battle issues if anything arises in the future. You can also keep the hardcopy and softcopy of your Acko car insurance for later use. Here are all the necessary details about it. 

Documents you need to keep:

There is a list of documents you need to keep for a longer time. These are as follows:

1. Auto insurance card:

The auto insurance card must accompany you when you operate your car. Acko car insurance provides access to a digital insurance card, or you may keep a paper copy as a backup in case you forget your phone. Keep them as long as you have a valid insurance policy, even if it is a 3rd party insurance. Moreover, you need this insurance card in case of accidents as it contains crucial policy information such as number, registration, and other pertinent details. This card is the foremost thing you need to keep for your further insurance-related processes. 

2. The declaration page of auto insurance policy:

An auto-declaration page provides a snapshot of policy coverage types, limits, and details of what could get excluded from your policy. You must retain the policy copy in a safe place, such as a desk file or a drawer until the period is no longer active. 

Moreover, you need to keep the declaration page until all the open claims get resolved. Acko car insurance also provides 3rd party insurance to car users. Having the declaration page with you will help ease communication with the insurance provider. 

3. Documents about the claim:

It is mandatory to keep all the receipts, payment bills, and other paperwork about the claim if you have an open claim with your insurer. In this case, Acko car insurance will check the receipts and pay bills related to the car, even if it is a 3rd party insurance. You may dispose of the documents once you receive the check and the claim gets closed. The claim document will help you keep track of all the claims and proceeds of that particular tenure. 

4. Monthly billing statement:

It may be a good idea to keep monthly billing statements until the policy payment gets processed. Also, you may dispose of the bills if the policy period has ended. 

However, your tax professional would recommend keeping the monthly statements for a few years if the policy pertains to your business. You must keep the billing information safe, such as in a cabinet or drawer. Moreover, if you are looking for good 3rd party insurance, opt for Acko car insurance. 

Documents that are not mandatory to keep:

There is a list of documents that are not mandatory to keep for long. These are as follows:

1. Your main policy document:

It is a multi-page document that includes all the details about the policy limits, coverage, 3rd party insurance, policy endorsement, discounts, and more. Mostly, people opt to hold these documents until they renew their policy. However, Acko car insurance offers digital access to these documents. 

2. Cancelled cheques from paid premiums:

Many banks do not return your cancelled cheques. You may shred the cheques once you reconcile them with your account. 

3. Prior ID cards:

Most auto insurance policies last for six months to a year, such as 3rd party insurance. When the Acko car insurance policy renews, you will get a new set of ID cards with the current policy dates and future expiration dates. Once your previous ID cards have expired, they are no prolonged required. 

How long should you keep the policy documents?

This question is the most asked in the car insurance buyer’s circle. However, if you are a car insurance holder, make sure to keep all the necessary and related documents in hand until the time of policy renewal. Having such documents will help you make the most out of your insurance policy. Also, you need not worry about any documentation or information hassles that come your way. 

The Acko car insurance provides the following details:

  • You do not need to retain the original policy documents for more than a year. 
  • Once you renew the policy, even if it is a 3rd party insurance, you can toss the old policy papers.
  • You may discard any records from policies that are no longer effective. 
  • You must retain all the insurance papers and anything related to the accident if there is an open claim. 
  • It is mandatory to keep all the insurance documents for seven years if your policy is for a business, as determined by the tax professional. 

Shafie SEO

SEO Blogger

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