When Should You Keep Your Car Insurance Records?

Posted on: Sep 23, 2022 | | Written by:

When Should You Keep Your Car Insurance Records?

Published on September 21, 2022. EST READ TIME: 3 minutes

Financial records of any kind are important documents, and keeping them safely pays in the long run. Accessibility is the main criterion when storing either a physical or a digital document, and thus, you should be stored in a place where the documents are easily accessible. The same rule holds true for car insurance papers. These papers should be kept in an accessible position so that when asked for can be presented easily.

These days the insurers provide a digital copy of the car insurance policy and, thus, give easy access to the policy, especially when asked for by the authorities. The question that arises is for how long should car records insurance be kept and if it really is required. Let us read on to understand this in detail.

Why should you keep your car insurance records, and for how long?

The insurance policy must be kept safely during its validity. Once the insured decides to switch the car insurance to a new insurer or the policy lapses and a new one is taken, it is important to keep the car insurance policy carefully. It is also possible that the policy expires, but there is a claim which is being processed. In this case, it is very important to keep the policy till the time the claim is settled.

On May 29, 2015, the Insurance and Regulatory Authority gave insurance companies the authority to issue digital policies. These are easy to store and can also be given to the authorities as valid documents when asked for.

What documents should you keep, and for how long?

All physical documents have to be kept properly in files to ensure they are safe and easily accessible. However, times have changed and with the availability of digital documents and these can be stored on phones and laptops and can be accessed easily. The DigiLocker app by the government is a safe and secure place to store digital copies of all important documents.

When it comes to car insurance, the car insurance policy is the most important document which must be stored. Besides the policy, it is also advisable to keep the claim documents carefully till the time the claim is settled, and the policy is renewed. If all the documents are on emails, mark these emails and keep them so that when needed, you can look for them easily.

Following are the documents that should be saved and also for how long.

● The car insurance policy certificate should be kept from the time of inception of the policy till the expiry. Also, if any claim is pending, the policy should be kept till the time the claim is settled.

● Emails related to the claims should be kept carefully till the time of claim settlement, and the claim amount is received.

● Receipts of premium paid must be saved till the expiry of the policy

● Receipts of payment

● As a reminder, you should keep the email reminders for renewal flagged to ensure you renew the policy on time. Driving a car without valid third party insurance is illegal.

● Keep a record of the FIR in case of accident or theft till the claim is settled and sometimes if any legal proceedings are being carried out.

● In case of theft claims, a non-traceable certificate should be retained as it might be needed in the future.

Why is the car insurance policy document important to save?

The car insurance policy is an important document as this is the agreement between the insurance company and you. The car is insured on the basis of the terms and conditions mentioned in this document and also the inclusions and exclusions.

At any point when there is a claim, the policy copy is the reference document for the insurer and the appointed surveyor, and they will settle the claim based on it. Also, as the policy details the coverage, it helps the insured take a decision if they need to file a claim or not.

Once the claim is settled, you should check the details on your policy to ensure you have got the right amount based on the terms and conditions given.

When and for how long should you keep expired insurance policies?

In a normal scenario, there is no use for an expired insurance policy for your car. The policy is of use only till the time it is valid. There are some specific cases when the expired car insurance policy must be kept. Some of these are:

● If there is any requirement to keep the policy for some legal or other matters

● Suppose there is any pending claim against the policy. In this case, the policy should be maintained and kept safely till the claim is settled.

Managing old policies and papers is not easy. In case of a claim for own damage or third-party liability, the policy must be retained. This is because the settlement will be as per the terms and conditions of the policy, which was in effect at the time the claim was filed with the insurance company.

Should you retain the old policy when you shift to a new insurer?

It often happens that one shifts the insurance company when they get a better price or better coverage or sometimes both. In such a scenario, you can change the insurer before the expiry of the policy or at the time of renewal.

If the insurance company is changed before the expiry, then the policy should be kept till it is valid, especially if there is a provision of the insurance company giving a refund.

Also, when you buy a new policy, it is mandatory to provide the details of the previous policy to get the new policy. This is also needed to get the no-claim bonus.

If there is any claim pending on the old policy, you should retain the policy till the time the claim is settled.

If a third-party liability claim is expected to be filed, the policy should be retained as the claim will be settled on the basis of the policy that was valid at that time.

Conclusion

Keeping old documents and papers is cumbersome and not necessary most of the time. Thus, it is important to know which documents can be needed in the future and when. The same holds true for your car insurance policy . You should only keep the ones that are relevant and might be needed in the future. Understanding the time till when it is needed is important as also understanding how to store them so that they are accessible.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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