Introduction: My Journey with Letter of Experience Insurance
When I first switched my auto insurance provider a few years ago, I was surprised when the new company asked me for something called a “letter of experience insurance.” At first, I had no clue what it was or why it was so important.
But after going through the process, I realized that this document can literally save you hundreds of dollars in premiums while helping insurance companies understand your true risk level. Since I’ve personally gone through the hassle of requesting and submitting one, I want to share my real experience, insights, and advice so you know exactly what to expect.
In this article, I’ll walk you through:
- What a letter of experience insurance is
- Why insurance companies ask for it
- My personal story and how it helped me
- How to request one easily
- Common mistakes to avoid
- FAQs from other policyholders
Let’s dive in!
What is a Letter of Experience Insurance?
A letter of experience insurance is an official document issued by your previous or current insurance company. It summarizes your insurance history, including:
- The dates you were insured
- Types of coverage you had (auto, home, renters, etc.)
- Claims history (accidents, damages, or none at all)
- Whether your policy was canceled, non-renewed, or lapsed
Think of it as your insurance report card. When you move to a new provider, this document proves your reliability as a customer.
Read Also: My Honest Review of Finding the best Affordable Auto Insurance
My Personal Experience with Letter of Experience Insurance
When I moved states, I had to find a new car insurance provider. During the application, the agent asked:
“Do you have a letter of experience from your old insurer?”
At first, I panicked because I had never heard of it before. But when I requested it from my old provider, they emailed it to me within 3 business days.
Here’s how it helped me:
✅ Lower Premiums: My clean claims record proved I was a low-risk driver. My new insurer gave me a 20% discount.
✅ Faster Approval: Instead of going through a long verification process, the letter acted as solid proof.
✅ Trust Factor: It showed I was a responsible policyholder, which helped when choosing add-on coverages.
If I hadn’t provided it, my new insurer would’ve charged me higher rates, assuming I was a new, inexperienced driver.
Why Do Insurance Companies Require It?
Insurance companies request a letter of experience insurance for three major reasons:
- Risk Assessment – To know if you’ve had prior claims.
- Premium Calculation – Discounts for no-claims history.
- Fraud Prevention – Ensures applicants don’t hide past insurance activity.
Basically, it’s their way of saying, “Show me your track record, and I’ll decide how much I trust you.”
How to Request a Letter of Experience Insurance
Based on my experience, here’s the exact process I followed:
- Call your insurance company (customer service or your agent).
- Request in writing – Some companies require an email or signed form.
- Wait for processing – It usually takes 2–10 business days.
- Receive by email or mail – Keep a digital copy for future use.
👉 Pro Tip: Always request your letter of experience before canceling your old insurance policy. It’s much easier while you’re still an active customer.
What Does a Letter of Experience Insurance Cover?
From what I’ve seen, most letters include:
- Your name & policy number
- Coverage dates (start & end)
- Insurance type (auto, home, renters, business, etc.)
- Claims history (accidents, theft, property damage)
- Payment history (if relevant)
- Status of policy (active, canceled, non-renewed)
This helps your new insurer decide if you qualify for safe driver discounts, loyalty benefits, or reduced rates.
Common Mistakes People Make (and How I Avoided Them)
When I first researched this, I noticed a lot of people ran into issues. Here’s what to watch out for:
❌ Not requesting it early enough – Some insurers delay, leaving you uninsured.
❌ Forgetting multiple policies – If you had both auto and renters, request letters for both.
❌ Not keeping a copy – Always save it digitally in case you switch again.
Collateral Benefits of Having a Letter of Experience
Apart from insurance savings, having this document handy also helps in:
- Rental car companies verifying your driving record.
- Credit applications where financial history overlaps.
- Future insurance renewals – saves time when switching.
I learned the hard way that keeping my documents organized makes every renewal smoother.
Letter of Experience Insurance Refunds & Adjustments
Interestingly, my new insurer adjusted my initial quote downward once they received my letter. That means without it, I would’ve overpaid!
In some cases, insurers may even issue refunds if they charged higher premiums before seeing your official letter. Always double-check with your agent.
FAQs About Letter of Experience Insurance
1. How long does it take to get a letter of experience insurance?
Usually between 2–10 business days, depending on the provider.
2. Can I request it after canceling my policy?
Yes, but it’s easier to request while you’re still insured.
3. Is it required for all insurance types?
Not always, but it’s common for auto and home insurance.
4. Do I have to pay for it?
In most cases, no. It’s a free document.
5. Will every insurer accept it?
Yes, most major companies recognize it as valid proof of insurance history.
6. Can it affect my premium immediately?
Absolutely. I saved nearly 20% just by providing mine.
Conclusion: My Honest Review of Letter of Experience Insurance
Looking back, requesting my letter of experience insurance was one of the smartest things I did when switching providers. It not only lowered my rates but also built trust with my new insurer.
If you’re planning to switch insurance soon, my advice is:
👉 Request it early
👉 Keep a digital copy for future use
👉 Use it to negotiate better rates
From my personal experience, this small step can save you hundreds of dollars annually while ensuring a smooth transition between insurance companies.
