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How a Claims Experience Letter Can Save You Money

We all want to save money on insurance and a big 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. Providing your broker with a claims experience letter has benefits for both the insurer and the policyholder and might even be necessary in certain circumstances.

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.  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.

How to get a letter of experience

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 DPM Insurance Group

Still have questions about claims experience letters? At DPM Insurance Group, our brokers and CSRs 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, DPM Insurance Group can help.

Click HERE to find the office most convenient for you.

Keep in mind that letters of experience are provided directly by insurance companies. So, an insurance brokerage like DPM Insurance Group cannot provide you with a claims experience letter directly; but we can help explain what they are and how you may benefit from procuring one and may also be able to assist if you have any trouble getting one from your current or past provider.

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