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 the real timelines, our team has looked into 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 know exactly what to keep, for how long, and what you can safely shred today.
How Long to Keep Your Insurance Documents
The rule of thumb is that you should keep anything tied to an open claim until that claim is fully closed and paid. After your claim is settled, it is recommended to keep everyday auto and home policies for 2 years after they expire, matching the basic two-year limitation period most provinces apply to lawsuits (Limitations Act, 2002), and to keep life insurance paperwork indefinitely, until the estate is settled.
For tax purposes, keep insurance records that support a tax return for 6 years (Canada Revenue Agency).
We recommend scanning everything connected to an open or recent claim and backing it up off-site (cloud plus a physical drive), then setting a calendar reminder for two years out to shred whatever’s expired and claim-free. That keeps you covered for the limitation window without drowning in paper.
Do You Have to Keep Old Insurance Claim Documents?
Once a claim is resolved, you don’t necessarily need to keep the documents, but it is a good idea to retain them for six years for tax purposes. A resolved claim means the insurer has closed the claim and made all entitled payments. It also means the policy related to that particular claim has expired.
You can safely toss any resolved claims documents from expired policies. Some people keep them a little longer if they expect to file a similar claim, but there’s no requirement to.
Should You Keep Insurance Documents After Switching Insurers?
You’re not required to keep insurance documents after switching insurers, as long as all claims are cleared. But if you still have unresolved claims, you need to keep the old documents until they’re closed.
Which Insurance Documents Should I Keep?
Not every insurance document needs to be kept forever inside of your safe. Here are the documents you should keep:
- Insurance card: Your insurance card (or a pink slip for auto insurance) is proof that you’re a policyholder. You should carry these on you at all times in case you may need to show that you own an insurance policy. Your insurance card is especially important for auto and health policies since police officers or hospitals may ask you to show them when needed.
- Declarations page: A declarations page summarizes your insurance coverage in one handy document. You should keep this because it often explains how to file claims, which can be useful if you’re new to insurance.
- Open claims documents: You shouldn’t throw away open claims documents because you might need them to settle the claim. This applies to the claim filing document as well as related paperwork like receipts for medical bills or vehicle repairs. You should also hold onto any insurance claims documentation like 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. But you might find past billing statements useful for comparing rates when you’re shopping for new policies.
Insurance Documents You Don’t Have to Keep
On the flip side, you have documents that are fine to dispose of when they expire. In fact, disposing of these old documents is encouraged. Not having them around means they can’t be used for identity theft.
Insurance docs you can throw away include:
- Expired main policies: Your main policy document details everything you need to know about your insurance coverage. They’re usually lengthy and take a bit of space to store. Fortunately, you may not need to keep expired policy documents long-term, but retaining them for several years is often recommended in case of claims, disputes, or tax-related questions. You can safely throw them away without getting into trouble – as long as you don’t have any outstanding claims.
- Old insurance cards: Insurance cards work similarly to main policies. If you have a new one from the insurer, the old one is generally rendered obsolete. Feel free to throw them away if you don’t need them anymore.
How to Safely Dispose of Old Insurance Documents
Insurance documents are very sensitive because they contain confidential information. If your policy documents fall into the wrong hands, you can end up a victim of identity theft and insurance scams. That’s why you have to dispose of old insurance documents properly.
- Put the documents in a cross-cut shredder. Cross-cut shredders destroy documents more thoroughly than strip-cut shredders, so people won’t be able to piece them together. You can buy a shredder at an office supply store, use the one at your workplace, or hire a record destruction service.
- Submerge the documents in water. Leave the bucket out for a day, then mix it into a pulp with a paint mixer to completely destroy the documents. You can also use bleach to hasten the process.
- Burn the documents in an outdoor fire pit until they turn to ash. Observe proper fire safety measures to keep yourself and your home safe.
- Securely delete digital copies only after ensuring you no longer need them for legal, insurance, or tax purposes. Consider physically destroying the hard drives if you’re particularly concerned about your information’s safety.
Destroying your insurance documents ensures irresponsible parties won’t misuse them. Here are some easy ways to safely dispose of old insurance documents:
How to Keep Insurance Documents Safe
Keeping insurance documents safe is important to protect yourself from identity theft. It also ensures you know where the documents are, saving you a lot of effort when you need them.
So, how do you keep insurance documents safe? Here are our tips:
- Store your insurance documents in a secure and fireproof home safe.
- Don’t store your documents in the basement in case of 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 into physical and cloud drives so you don’t lose all your backups when one fails.
- Tell your beneficiaries where your documents are located and how to access them. This is especially important for life insurance to make the claims process easier when they find out you passed away.