Do you need to keep old car insurance documents?

If you’ve got a drawer (or maybe even a whole box) stuffed with old Canadian car insurance papers, you’re not alone. Most of us hang onto them just in case, but is it actually safe to let them go? The truth is, there’s no one-size-fits-all rule when it comes to keeping insurance paperwork. Some documents are worth holding onto for years, while others you can safely toss once they’ve done their job.

But whether it’s for resolving a delayed claim, filing taxes, or even handling a legal dispute, having the right documents on hand can save you a lot of time and maybe even money. So, how do you know what to keep and what’s just clutter? Let’s break it down.

Why should you keep old car insurance documents?

You might be tempted to toss out those old car insurance papers the moment your new policy kicks in, but don’t reach for the shredder just yet. There are a few good reasons to hang onto them, at least for a while:

For handling open claims

If you filed a claim during that old policy period, and it’s still open or being processed, definitely hold onto the paperwork. You’ll want that information handy until everything’s fully settled.

For handling disputes

Old insurance documents can be a lifesaver if there’s ever a dispute with your insurer. Maybe a claim gets reopened months later, or there’s confusion about whether you had coverage on a certain date. Having the original policy or proof of coverage on hand can help clear things up quickly.

For tax purposes

In some cases, if you’ve used your vehicle for work, like as a delivery driver or contractor, your insurance documents might support deductions at tax time. The Canada Revenue Agency (CRA) may ask for documentation, so it’s a good idea to have everything in order.

So, while you don’t need to keep every piece of paper forever, hanging onto your old insurance documents for at least a few years can save you time, money, and frustration later on.

How long should you keep old auto insurance documents?

Some insurance documents, especially the big ones like the full policy jacket (also called the policy form), usually don’t need to stick around for more than a year. However, that can vary depending on a few things, like whether you’ve got an open claim and how you use your vehicle. Here's a handy breakdown of car insurance documents and how long you might want to keep them:

Now, use this as a general guideline. If you want to keep your documents longer, you absolutely can. When in doubt, it’s safer to hang onto documents for a few extra years, especially if there’s ever a chance of legal action or future insurance disputes.

Canadian taxes

Now, as we mentioned earlier, if your car is used for business, that’s a different story. You may need to keep your insurance documents for tax reasons, and according to the Canada Revenue Agency (CRA), you need to keep those for up to seven years. It’s a good idea to double-check with a tax professional on what’s required in your situation.

What if I accidentally tossed out important car insurance documents?

If your last decluttering session got a little too enthusiastic and you accidentally tossed your important documents, there's no need to panic. You can almost always get them back.

Just log into your insurance account online. Most car insurance companies let you view and download all your policy documents right from your dashboard.

But if you can’t find what you need or prefer to talk to a real person, just give your insurance agent or broker a quick call, and they can resend anything you’re missing. Also, if your insurer has a mobile app, it’s worth checking there first. A lot of them now give you full access to your documents on the go.

What could happen if you don't hold on to your insurance documents?

It might be tempting to clear out that overflowing file folder, but tossing old insurance documents too soon can come back to bite you. While not every piece of paper needs to be saved forever, there are real risks to not holding onto key records:

Disputes over past claims

Sometimes, a claim might be reopened months (or even years) after the fact, especially if the other party decides to pursue damages later on. Without your original insurance policy or related claim paperwork, proving what was covered and when can get tricky.

Lawsuits

If you're involved in a lawsuit related to a past accident, having access to your old insurance records could be crucial. Without them, you may be left scrambling to prove your side.

A scenario where you tossed your paperwork too early

You live in Alberta, where you're allowed to sue the at-fault driver for damages, including pain and suffering, income loss, and medical costs. Almost two years ago, you were involved in an at-fault accident. At the time, it seemed minor—no major injuries. The claim was processed quickly, and everything was settled, so you tossed your old insurance and claim documents.

Today, you get served with legal papers. The other driver is now filing a lawsuit, claiming they suffered late-onset long-term injuries from the crash. You're stunned and unprepared. With no paperwork to reference, you're now struggling to remember the exact coverage you had, what was said during the claim process, or what documents were filed.

Your insurance provider may still have some records, but after a few years, full documentation isn’t always guaranteed. Without your own file, it’s harder to defend yourself, verify timelines, or support your case if it goes to court.

How to store important car insurance documents

Whether it’s your car insurance policy, vehicle registration, or repair receipts, keeping your documents safe and organized is key. After all, you never know when you might need to access them in a hurry, especially in the middle of a claim or if you're asked for proof of coverage. Here's how you can store them:

Paper documents

For paper copies, a portable, fire-resistant lockbox is a great option. Just make sure to store it somewhere safe. For example, avoid the basement or directly on the floor, since flood damage can wipe out your records in one unfortunate event. It's even better if the box is also waterproof.

Digital documents

For digital storage, you’ve got lots of great tools. An encrypted USB stick or secure cloud storage (like Google Drive, Dropbox, or iCloud) keeps your files protected and accessible anywhere you have internet access. Just be sure to use strong passwords and enable two-factor authentication for added security. Organize your files into folders with clear names so you're not digging around when time is tight.

How to properly dispose of old car insurance documents

When it’s finally time to get rid of old car insurance paperwork, don’t just toss it in the trash. These documents often contain sensitive personal details, like your name, address, policy number, vehicle info, and sometimes even your driver’s licence number. That’s exactly the kind of information identity thieves look for. Here’s what to do based on your auto insurance document type:

Paper documents

Shredding your documents is one of the safest ways to prevent identity theft. A cross-cut shredder is especially effective, as it cuts your papers into tiny pieces that are nearly impossible to reassemble. Simply ripping the document in half isn’t enough these days. Dumpster diving for personal info is still a real risk, especially in larger cities or apartment buildings with shared bins. While the rates of identity theft have decreased in Canada, according to Statistics Canada, that doesn’t mean it’s not still a real threat.

Digital files

If you’ve gone paperless and keep your car insurance records digitally, make sure you delete files securely and encrypt anything you’re hanging onto long-term. This means using password protection or secure file storage tools that scramble your data so it’s unreadable to hackers.

Get in touch with BrokerLink for more information on auto insurance

When you purchase an auto insurance policy, the odds are that you will receive a slew of paperwork, whether physical or digital. Since insurance policies typically last one year, this could add up to a significant amount of paperwork after a few years. Knowing which documents are worth keeping and why, as well as which can be disposed of and how to dispose of them, can help you manage it.

If you have questions about important car insurance documents, contact BrokerLink today. Our insurance advisors are knowledgeable, friendly, and always willing to share their expertise. You can reach us by phone, email, or in person at any one of our locations throughout Canada.

And if you're looking for car insurance coverage, you can also use our online quote tool to request your free car insurance quote right now. All quotes are accurate, competitive, and obligation-free. What do you have to lose?

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