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Auto Insurance Q & A – What Is an Experience Letter and Should I Get One?

In your quest for cheap auto insurance, you want to do everything you can to get the best insurance rates possible. We’ve talked about this a lot here on the blog (like here and here). In this post, we’re going to talk about an experience letter, what it means for auto insurance and how it just might help you to get a better price on your coverage.

Experience letter defined

An experience letter is an official document that provides a record of your history of insurance with a particular company. It will include information like the number of your policy, the dates that you were covered, any claims you may have had and the details of those claims, whether other drivers were listed and other information such as why your coverage ended. You can think of it like a letter of reference when it comes to insurance.

When do I need an experience letter?

If a potential insurer does not have complete information about you and your insurance history or if they need some more details about that history, an experience letter can help provide them that. It can help to verify any of the information that you might share when getting a quote for coverage.

Some common scenarios for when an experience letter is helpful include:

~ You’ve recently moved to Ontario, whether from another province or another country.

~ You had a lapse in coverage or were not insured for a period of time. (This can cause some insurance companies to hesitate, thinking that you are a higher risk than someone with a proven history of insurance).

~ You were listed on another insurance policy, but you were not the primary driver. Being a first time policy holder can make you seem riskier to an insurer, so being able to provide a history of being insured could prove useful.

In the above examples, an insurance company might have a difficult time ascertaining your insurance history and important information that can help save you money. An experience letter helps to mitigate this.

How an experience letter can be helpful in saving on auto insurance

~ As we know, insurance companies have a multitude of factors they take into consideration when setting rates. Ensuring that they have the most complete information about you as possible is important when you’re looking for the cheapest auto insurance possible.

~ It can be helpful when getting multiple quotes. As we’ve talked about, doing your research and gathering a variety of quotes is an important way to get the best auto insurance rates possible. For this reason, we suggest you have one available when using our online quote system to find cheap auto insurance in Ontario as its such an easy way to verify your information.

~ Just ask. As we always say here, different insurance companies offer different solutions and have different policies. It never hurts to ask if an experience letter could help you get a better quote. Some providers will be able to provide discounts or other savings based on information provided in the letter. Others won’t. So it never hurts to ask.

How do I get an experience letter?

If you’ve now decided that getting an experience letter is in your best interest as you search for the best insurance rates possible, you’re probably wondering how you get one? It’s simply a matter of asking for one, either from your current provider or anyone that has insured you in the past. For each separate provider there will be a separate experience letter.

Are we only talking about auto insurance here?

A letter of experience can also be used when looking for home insurance coverage. And if you’re looking for a first time home insurance policy, but you had renters insurance before that, this can be a helpful tool in getting better rates. Again, don’t ever hesitate to ask! You can learn more about using a letter of experience for home insurance here.

Have some questions about an experience letter or not sure if you really need one? Get in touch with someone from our team to get some expert guidance. Looking for an auto insurance quote for Ontario? Head over here to access our online quote tool 24/7.

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