An insurance experience letter or letter of experience insurance is a document that an insurance company writes to confirm and provide proof of a person’s driving history.
You may request this letter from your past insurance company to show your driving record to another potential insurance company.
When it comes to car insurance issues I don’t like high premium rates.
I believe you don’t like it too.
Of course, nobody does.
How can we deal with that?
With a well-written Insurance experience letter from my past insurance company, I was able you can reduce my premium by more than 50%.
I know it sounds UNBELIEVABLE!
But that single document took my monthly premium from $300 to $150 within seconds.
That was a shot up from a 0 to a 9-star driver.
And this post is all about how you can explore that magic through the same WAND called an Insurance experience letter.
Here I will take you through
- What is an Insurance experience letter?
- How can you obtain an Insurance experience letter from your previous insurer?
- How does an Insurance experience letter work?
- Why do you need an Insurance experience letter?
- When is an Insurance experience letter necessary?
- What does an Insurance experience letter contain?
- Insurance experience letter example
- Can an Insurance experience letter really help you get a premium discount?
- What if your Insurance experience letter does not help you to get a discount?
Let’s get started
Jump to section
What is an insurance experience letter?
An insurance experience letter is a brief statement of facts written by a former or present insurance company to provide a verified record of a driver’s insured history.
This letter is also known as an Insurance Letter of Claims Experience, Proof of Prior Insurance Letter, or simply a letter of experience insurance.
You can only get this letter after a formal request from your current or previous insurance company.
You may need this letter when you want to change insurance providers or you have moved from one country to another (let’s say from Canada to the USA) and you have successfully found a new suitable insurance company for your car.
In that scenario, your new company may ask you to provide an insurance experience letter to verify your records before taking you on board.
To obtain the letter, you will need to request it from your former or current insurance provider.
How can you obtain an Insurance experience letter?
You don’t need to stress much about this.
The procedure for obtaining an Insurance experience letter from your previous insurer is very simple and straightforward.
And most of the time it is FREE of charge.
All you have to do is ask your insurance company for an experience letter through a formal request letter, email, or call.
Tell them why you want the letter- you have moved out of the country, your new insurer needs to prove claims on your record, you have been covered by someone’s else insurance and now you own your car, etc.
To help them provide an effective experience letter, make sure you give as many details as possible.
REMEMBER only the insurer who at least issued you a policy can supply you with a letter of experience.
The best practice is to request an insurance letter of experience whenever you switch providers.
This will ensure that you always have an up-to-date insurance record and will save you the time and trouble of requesting one in the future.
Don’t worry if you didn’t request it, you can still request this letter anytime, even years later
How does an Insurance experience letter work?
An Insurance experience letter works as a letter of recommendation from your previous insurance company.
It gives your potential insurer vital information about your insurance history.
An Insurance experience letter is your former insurer’s mode of vouching for you to new insurance providers.
It is essentially a legal method for moving your verified insurance record between insurers.
Why do you need an Insurance experience letter?
As I explained from the outset of this post, I don’t believe I need much energy to explain why you need an insurance experience letter.
You already know!
Here’s the snapshot!
Insurance companies frequently require a letter of experience to verify and update your coverage information.
Therefore, a letter of experience showing your strong history of coverage may qualify you for insurance discounts.
This is especially true if you have few or no claims in your history.
A letter of experience might also assist you in obtaining insurance if you are having difficulty finding someone willing to insure you.
NB: An insurance experience letter is not a mandatory requirement but is one of the components that an insurance company may consider when calculating your insurance premiums.
When do you need an Insurance experience letter?
Generally, you need an insurance experience letter when;
- You have moved to the USA from another country
- You need to prove claims on your record
- For whatever reason, you haven’t had an insurance policy in several years.
- Your new insurance company needs clarification on your insurance history,
- Despite having insurance, you weren’t the primary insured under your previous insured policy, for example, you had insurance coverage through a parent, spouse, or roommate, or were covered by any other unique situation)
The good news is when you switch from one domestic insurer to another, the majority of American insurance companies do not demand a Letter of Experience.
American insurance companies have shared Comprehensive Loss Underwriting Exchange (CLUE) database that compiles all insurance data in a single handy spot.
CLUE keeps track of information about drivers and automobiles.
Insurance companies can quickly examine your driving record and accident history through this database.
What does an Insurance experience letter contain?
Generally, the format of a Letter of Experience may differ from company to company, but it must contain all pertinent information about the driver and their insurance history including;
- Your personal details (name, address, and contact information)
- The personal details of other individuals covered by the same policy
- The policy number
- The details of the insured object eg. vehicle SN and other description
- the start and end dates of the policy.
- All insurance claims
- claims-free status. The Letter of Experience may declare, for example, that “no claims were paid during this period,” this may help you qualify for a claims-free rate with your new insurer.
- Claims for additional drivers on the policy. If you had a clean driving record but your son wrecked a vehicle while covered by your policy, your son may be included on the Letter of Experience.
- Reasons for any insurance cancellations
Insurance experience letter example
The following is a simple sample of a letter of experience car insurance from an insurance company.
City, State, Zip code
Dear Mr./Mrs./Ms. [Recipient’s Last Name]
This is to certify that Mr. Very Good of [address] has been insured by our company under [name of policy] policy number [policy number] from [policy start date] to [policy end date].
During our coverage term, there have been no claims filed, no reported accidents, and no criminal charges against Mr. Very Good.
We understand that Mr. Very Good is now looking for another affordable insurance company that will meet his financial expectations. We strongly believe that this letter offers significant information that will help you make a reasoned decision.
If you have any questions regarding this letter or require further information concerning Mr. Very Good insurance experience with us, feel free to contact us through [email] or [phone]. We will be thrilled to discuss with you Mr. Very Good coverage history.
Can an Insurance experience letter really help you get a premium discount?
Yes, an Insurance experience letter can really help you get a premium discount and it may do that for more than 50%.
That means proving that you are a reliable individual may take your premium monthly fee from $400 to $200.
In case you don’t believe my words (they are too simple to be true) the following real-life examples may make more sense.
First, we have hesh0925 (Reddit username)
In his post, Hesh witnessed that with a simple letter of experience, her wife was able to shoot up from a 0-star rating to a 9-star driver and reduced their premium drastically from $340 a month to $180 a month.
Here is an embedded full post
Another one is snirpvill
In his post snirpvill said through an experience letter from his car insurance company and a driving record from his former province (needed when he moved to Manitoba) he got a nice discount on his monthly insurance, however, he did not say how much but at least he got a discount.
Here is an embedded full post
If it worked for others, it will also 100% works for you.
The bad news?
That result is not guaranteed.
What if an Insurance experience letter did not help?
Sometimes even a strong Insurance experience letter may not help you get a premium discount.
Here is why
Each insurance company has its own pricing system, and your letter of experience may or may not result in the savings you were hoping for.
Although your letter may indicate 24 months of excellent standing, your new insurance carrier may have a system that offers a claims-free discount only after three years.
In this situation, regardless of your experience letter, you’ll still have to wait a year to earn the discount.
Insurance company prices can be influenced by a variety of things.
Subtle differences in pricing can have a significant impact.
It is best to compare insurers to find the best plan and price for you.
You really need to do your homework here.