Should You Get A Letter of Experience for Insurance?

Finding the right insurance policy can feel like a tedious task; you need to research your options, compare quotes and go over lots of "fine print" before you can make an informed decision.

If you're actively shopping for insurance, it's only a matter of time before one of the insurance companies asks you to provide a letter of experience. Without a letter of experience, insurance companies may not be able to verify your credentials, which means that you could miss out on valuable discounts and deals.

This leads to the question, "what is a letter of experience, and when should you get one?".

Continue reading to find out!

What is a letter of experience for insurance? — An expert guide

A letter of experience is an important document containing information about your auto insurance history. Insurance companies can request a letter of experience to verify specific information about the policyholder's history and level of experience.

Simply put, a letter of experience is somewhat similar to a reference letter that you'd bring to a job interview. However, instead of helping you get a new job, your letter of experience can help you get insurance faster and, potentially, at a better price.

When should you request an insurance letter of experience?

As mentioned earlier, insurance companies ask for letters of experience to verify certain pieces of information related to your driving history.

You should always ask for a letter of experience every time you switch insurance providers; taking the time to do this prevents you from having to request one later on.

Car insurance companies don't always ask for a letter of experience, but there are certain situations where you'll most likely be asked to provide one. Some of these situations include:

• You've moved to Canada from a foreign country (the Letter of experience must be written in English)
• You've moved to a different province or territory
• The insurance company noticed an inconsistency or discrepancy in the information that you've provided
• You experienced a lapse in coverage
• You weren't listed as the primary driver on your most recent policy

Contact your Surex insurance advisor to learn more about the instances where you may need to provide an insurance letter of experience.

What information can insurance companies verify with a letter of experience?

When you provide a letter of experience, insurance companies can use it to verify the following information:

• Personal information (name, address, etc.)
• Your insurance policy number
• The start/end date of your insurance policy
• Policy cancellations
• The reason the policy was canceled
• Auto insurance claim history
• Licence suspensions
• Whether you took government accredited driver training or not

Can you only get a letter of experience for auto insurance?

No, policyholders can request a letter of experience for a variety of different types of insurance, including home and condo insurance. Policyholders should note that different types of letters of experience provide different details, but all of the information is related to their insurance history.

How do you get a letter of experience for insurance in Ontario?

If you want or need to get your hands on your letter of experience, all you need to do is contact your current or previous insurance companies. Your insurance companies will then provide you with a letter of experience that you can give to prospective providers.

If you're having a hard time contacting your previous insurance companies, you can contact your broker or Surex insurance advisor. Insurance brokers can't provide a letter of experience, but they can help you correspond with your previous provider or providers.

Letter of experience vs driver history report — What's the difference between the two documents?

Letters of experience and driver history reports (also commonly referred to as abstracts) are somewhat similar, but there are some key differences that policyholders should know about. Both documents contain important information that insurance companies can use to verify a driver's history, but they focus on different details.

Unlike a letter of experience (which contains information about your insurance history), a driver history report generally features the following types of information:

• The type of driver's licence you have
• Driving convictions
• Demerit points

How does providing a letter of experience benefit you as a policyholder?

Getting a letter of experience doesn't necessarily guarantee that you will get access to cheap insurance, but it can increase your chances.

By providing an updated record of your insurance history, you can potentially get access to a number of discounts, like claims free or customer loyalty discounts. However, policyholders should note that the types of discounts/levels of savings will vary depending on the insurance company you're with.

Additionally, when you provide a letter of experience, insurance companies can verify your information in an efficient, timely manner, which further streamlines the process. All in all, even though it isn't always required, it's generally a good idea to ask your current insurance provider for a letter of experience.

If you want to get access to even more competitive rates, you should consider teaming up with an online insurance brokerage like Surex. Online insurance brokerages can help you find and compare insurance quotes from several of Canada's top-rated providers, like Aviva. Online insurance advisors can help you compare quotes until you've found the best product for your lifestyle, needs and, of course, budget.

Save up to 25% when you team up with a Surex insurance advisor today

Finding the ideal insurance policy can feel like finding a needle in a haystack, especially if you don't have anyone to lend a hand. Thankfully, you don't have to compare insurance quotes by yourself; you can rely on your personal Surex insurance advisor.

Instead of pairing you with the first available advisor (like many insurance brokerages in Canada), we pair you with your own personal advisor. This means that you don't have to re-explain your situation to a new broker each time you call; you can jump right into the action with an advisor who sees you as a person, not a number.

Contact us today to receive cheap insurance quotes in ten minutes or less and to learn how we can help you save (up to) 25% when you bundle multiple policies with a Surex insurance partner.

Note — Many insurance companies in Canada will no longer provide letters of experience unless the policyholder is moving out of province/out of the country. As all brokers have access to AutoPlus Insurance History report, they feel that is sufficient unless moving to a different province where a broker wouldn't have access to it. Normally the only time brokers can ask for an LOE if the customer hasn't moved out of province is if there is a discrepancy on their Autoplus report.