This guide is for anyone staring at a drawer full of old insurance paperwork and wondering what’s actually safe to throw out.
To give you useful timelines, our team reviewed the CRA’s record-retention rules and the provincial limitation periods that determine how long a claim can still be brought, with the insurance-specific parts checked by a licensed broker on our team. By the end, you’ll have a better idea of what to keep, for how long and what you can safely shred.
How Long to Keep Your Insurance Documents
As a rule of thumb, keep anything tied to an open claim until it’s fully closed and paid. How long you should keep it afterward depends on the type of claim, the policy, the province and whether the documents support a tax return.
Keep life insurance paperwork indefinitely.
For tax purposes, keep insurance records that support a tax return for at least six years (Canada Revenue Agency).
We recommend scanning everything connected to an open or recent claim and backing it up off-site using cloud storage or a physical drive.
Do You Have to Keep Old Insurance Claim Documents?
Once a claim is resolved, you don’t necessarily need to keep the documents forever. However, records that support a tax return should be retained for at least six years.
A resolved claim means the insurer has closed the claim and made all entitled payments.
Should You Keep Insurance Documents After Switching Insurers?
If you still have unresolved claims after switching insurers, keep the old documents until the claims are closed.
Which Insurance Documents Should I Keep?
You don’t need to keep every insurance document forever in your safe. Here are the documents you should keep:
- Insurance card: Your current insurance card, or pink slip for auto insurance, is proof that you’re a policyholder. Keep your current auto insurance card available when driving in case you need to show proof of insurance.
- Declarations page: A declarations page summarizes your insurance coverage in one handy document.
- Open claim documents: You shouldn’t throw away open claim documents because you might need them to settle the claim. This applies to the claim filing document and related paperwork, such as receipts for medical bills or vehicle repairs. You should also keep documentation such as police reports or accident photos.
- Billing statements: There’s generally no legal requirement to keep insurance billing statements for personal use, but they may be useful for tax purposes or financial records. You might also find past billing statements useful for comparing rates when you’re shopping for new policies.
Insurance Documents You May No Longer Need
You can dispose of some documents once they expire. Not having them around means they can’t be used for identity theft.
Documents you may no longer need include:
- Expired policies: Your main policy document details everything you need to know about your insurance coverage. These documents are usually lengthy and take up space. You may not need to keep an expired policy once any related claims, disputes and tax matters have been resolved.
- Old insurance cards: If you have received a new card from the insurer, the old one is generally obsolete. You can destroy it once you’re sure the replacement is active and correct.
How to Safely Dispose of Old Insurance Documents
Insurance documents are sensitive because they contain confidential information. If your policy documents fall into the wrong hands, you could become a victim of identity theft or insurance fraud. That’s why you should dispose of old insurance documents properly.
- Put paper documents through a cross-cut shredder. Cross-cut shredders destroy documents more thoroughly than strip-cut shredders. You can buy a shredder, use one at your workplace or hire a document-destruction service.
- Securely delete digital copies only after ensuring that you no longer need them for legal, insurance or tax purposes.
Destroying old insurance documents helps prevent other people from misusing them.
How to Keep Insurance Documents Safe
Keeping insurance documents safe helps protect you from identity theft. It also helps you find the documents when you need them.
Here are some tips:
- Store your insurance documents in a secure and fire-resistant home safe.
- Don’t store your documents in the basement if it may be exposed to flooding.
- Put your insurance documents in binders or plastic sleeves before storing them in a safe to reduce wear and tear.
- Scan paper documents to make digital backups.
- Copy your digital backups to physical and cloud storage so you don’t lose everything if one backup fails.
- Tell your beneficiaries where your documents are located and how to access them. This is especially important for life insurance because it can make the claims process easier after you die.