If you are shopping for a new car insurance policy, the insurance company you apply to must have the correct information about you it needs to give you the cheapest possible rate.
Insurance companies look at a broad range of information when assessing what your rate should be. But if they cannot get your full driving history, or some of the details they have are incorrect, it can affect how high your auto insurance premium is. For instance, if you weren’t the primary driver on a policy despite being previously insured. Should that happen, you will need to provide them with what’s known as a letter of experience.
A letter of experience is a document from your former insurer that confirms the information you’ve provided about your driving and insurance history. Your new auto insurer may ask you for one, or you can request one from your former insurer to use while getting multiple quotes. If you have switched insurers several times, you may need letters from each of the previous providers that insured you.
There’s a lot that goes into an insurer’s calculations when determining an auto rate, like where you live, your driving record, the car you drive and your insurance history. Your insurance history plays a significant role, and insurers consider the following factors when calculating your premium:
A letter of experience will be written on the insurance company’s letterhead, and will typically include the following details about your current, or previous policy:
There are multiple situations where a broker or agent will request that you provide a letter of experience:
A letter of experience will provide them with that information if they’re unable to access it through a public database. Generally, brokers and agents only have access to driving records and insurance history in the regions for which they are licensed.
Though an experience letter doesn’t guarantee a lower premium, if needed, it may help you clear up any discrepancies or help you get credit for your experience behind the wheel when shopping for an affordable car insurance rate.