We all want to save money on insurance. Part of receiving the best insurance rate is understanding how insurance companies determine premiums. Insurance providers use a wide variety of factors to assess risk, and knowing these can be helpful when it comes to saving money.
Beyond age or location, one detail insurance companies will want to know is your claims history - and that’s what a claims experience letter provides. Procuring a claims experience letter has benefits for both the insurer and the policyholder and might even be necessary in certain circumstances.
Keep reading to learn more about claims experience letters, including what they are and why you might need one.
What is a letter of experience?
A claims experience letter, otherwise known as a letter of experience, is a document that policyholders can request from their current or previous insurance provider. Claims experience letters are always provided directly from the insurance company.
Think of them as formal letters or records that show your insurance claims history.
It can act as a letter of reference and provide other insurance providers with key information about you. This can help verify the information you’ve provided to your new insurer and can even help you save money on your policy.
Why do I need a claims experience letter?
Examples of scenarios when a policyholder might need a letter of experience from their insurance provider are as follows:
- If you’ve recently moved to a new province.
- If you’ve recently moved from another country to Canada.
- If you were not the primary policyholder on your previous insurance policy (for example, if you were one of the secondary drivers listed on another person’s auto insurance policy.)
- If the insurance company has identified discrepancies or inconsistencies in the information you provided on your insurance application and wants to verify your information.
- If you had a lapse in insurance.
Ultimately, you might need to provide a letter of experience to your new insurance company to help them better understand your insurance history. If you recently moved to a new province or were not the primary policyholder on your last insurance policy, your provider might be looking for more clarification about your history.
A claims experience letter offers just that. As a record of the most up-to-date information on your insurance history, it can help an insurance company assess your risk. From this one document, they can find out about any claims filed, policy cancellations, and the length of time you’ve been insured.
Claims experience letters aren’t just for the benefit of the insurance company, they can also benefit the policyholder. If the letter of experience shows the insurance company that you are not a risk, they might lower your premium, saving you money on your policy.
Information needed for a claims experience letter
A claims experience letter is a record detailing your insurance claims history. A letter of experience typically includes the following information:
- The name and address of the policyholder.
- The policy number.
- The effective and expiry date of the policy.
- All claims (if any) made during the policy period.
- The names of all people included in the policy (for example, all drivers listed if there are multiple).
- Reasons for any insurance cancellations.
Depending on your previous insurance provider, the terms of your contract and your liability limits may also be included in the letter of experience.
Obtaining a letter of experience from your current or past insurance provider
The process of obtaining a claims experience letter from your current or past insurance provider is relatively simple. All you need to do is contact your provider by phone or email and request a letter of experience.
We always recommend obtaining a letter of experience whenever you switch providers. This way, you always have an updated record of your insurance history, which can save you time, money, and hassle down the road, especially if you move around frequently.
Contact BrokerLink for more information on claims experience letters
Still have questions about claims experience letters? BrokerLink has been in business for over 30 years and we know the ins and outs of the industry. So if you aren’t sure how to obtain a letter of experience from your old insurance provider or you need help understanding what they are or how they can benefit you, BrokerLink can help.
Contact us by phone, email, or in person at one of our many locations, and an insurance advisor will be pleased to assist you.
Please note that letters of experience are provided directly by insurance companies. Therefore, an insurance brokerage like BrokerLink cannot provide you with a claims experience letter. However, we can help explain what they are and how you may benefit from procuring one.
We may also be able to assist if you have any trouble procuring one from your current or past provider.
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