When it comes to getting the best deal on a new car insurance policy, having the correct information and records are necessary. This is so you can be given the cheapest possible rate on your new policy. When your policy is being set up, insurance companies will look at a plethora of information when figuring out your rate. However, if they are unable to access your full driving history or you have provided some incorrect details, it can affect the price of your premiums. This is a situation where many people shopping for new insurance find themselves in. This is where a driver’s letter of experience comes in handy. When provided to your insurance company, it can help you retain cheaper rates, regardless of any bumps in the road you may run into.
What is a letter of experience?
A letter of experience is exactly what it sounds like. It’s a document that is given to you by a former insurer that confirms the information that you have provided regarding your driving and insurance history is correct. In many cases, your new insurer will ask for one. It is also regularly requested from your insurer to use while getting multiple quotes. It is important to keep in mind that if you have used multiple insurers in the past, you may need letters of experience from multiple providers, not just your most recent.
There are many things that go into your insurer’s calculations and determining your auto rate. Some examples include where you live, your driving record and the car you drive. On top of this, your insurance history will play a major role in your rate. Insurers will consider many factors when calculating your premium, such as:
- Collisions
- Tickets
- Claims history
- Length of time you were insured continuously
- Any previous insurance cancellations
- Records for your past policies within the province
What does a letter of experience entail?
All letters of experience will generally include the same details. As mentioned earlier, you may need multiple letters of experience from multiple insurance companies. All letters of experience will be written on the insurance companies letterhead, and will usually include the following details about your current or previous policies:
- Policy number
- Name of person(s) on policy
- Policy start date and end date
- Name of driver requesting the letter
- Why the policy ended
- The claims reported or paid against the policy
How can I get a letter of experience?
Generally, the process of receiving a letter of experience is straight forward! It can be done by simply contacting your insurance company and requesting a letter of experience. It is generally recommended to request a letter of experience each time you switch to a new provider. This will ensure your records are accurate. On top of this, it can save you time and hassle if you are asked to provide one in the future. Keep in mind that only the insurer that provided you with a policy can supply you with a letter of experience!
When is a letter of experience necessary?
There are a ton of situations where an insurance broker or insurance agent will request that you provide a letter of experience. Here are some of the most popular:
1. Recently changed provinces or immigrated to Canada
If you have recently moved from one province to another or have come to Canada from another country, it is likely you will need to provide a letter of experience from your previous insurer. If you have moved provinces within Canada, the process can be much easier, since your history will typically carry-over into your new province. In some cases, if you are coming from a different country, it is possible your driving and insurance history can be carried over as well. However, that is determined on a case-by-case basis, so check with your isure broker before making any changes.
2. Commercial driving history
If you have been insured on a company car insurance policy in the past, there is a good chance it isn’t included in your insurance history. In cases such as this, a letter of experience is necessary. If this happens, contact your commercial car insurance company or isure broker and request a letter of experience. This is so your driving history can be taken into account from your new insurance company when calculating your new premiums.
3. Lack of information or problems
In many cases, it can sometimes be difficult to provide your new insurance company with necessary information to insure you. If this is the case, a letter of experience may prove useful. In other instances, the driving history you provide may not be consistent with what is stated in your insurance history. A letter of experience may also be required here, as well. People who run insurance companies are only human, and can sometimes make mistakes that can affect your insurance history. By requesting a copy of your driving history, you can make sure there are no discrepancies.
How can a Letter of Experience help you save on insurance?
In order to get the best rates on your car insurance, a bunch of information is necessary to determine what you will be paying. When this information isn’t present, it can be difficult to receive the best rate. This is how a Letter of Experience can help you in saving on your car insurance premiums! In many cases, when the information is already present, your letter of experience can be that extra boost that shows you are skilled and safe behind the wheel. When your new or reoccurring provider sees that you are an experienced driver with a good driving record, you will begin to reap the benefits and save.
Though not always the case, a letter of experience may supply you with a lower premium. Overall, it is definitely recommended to have. On top of this, it can help you clear up any mistakes or instances in your driving history! This will help you get credit for your experience on the road when shopping for a new car insurance rate. Contact us or request a quote today!
