Letter of Experience Insurance – All You Need to Know

Your new car insurance company needs a lot of information to be able to give you a fair insurance rate. It’s not a simple task, as they have so many metrics and factors to consider. One way you can help them is by providing a letter of experience. It helps the insurance providers learn about your auto insurance history to set a reasonable price for your premiums. In this blog, we tell you all you need to know about letter of experience insurance.

What is a Letter of Experience?

A letter of experience is a document you can obtain from your previous insurer that confirms information about your insurance history. You may need one if you’re shopping from different insurers for a new car insurance policy. In some cases, the new insurance company you chose may request one. A letter of experience is not strictly required when applying for insurance, but it can help secure discounts and verify insurance history.

If you’ve switched between multiple insurance companies before, you may need to obtain a letter of experience from each insurance company. You can get one for home or car insurance, but this blog mainly focuses on auto insurance.

Why Do Insurance Companies Ask for a Letter of Experience?

Car insurance companies make extensive calculations to determine the cost of your insurance policy. Factors like age, location, driving and insurance history, type of car you drive, and payment history length are all crucial to help them set a number.

With a letter of experience, you can give them an accurate idea about your driving record, insurance claims history, and payment history, all of which can tell a lot about the risk they face when they insure your car.

For example, finding out that you have no prior at-fault accidents who always paid your insurance premiums on time shows that you’re an upstanding policyholder who poses no risk of making future claims or delaying payment. In that case, you get a discounted rate in comparison to other types of drivers.

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When Do You Need an Insurance Letter of Experience?

Your car insurance history is usually easy for auto insurance companies to obtain from a public database. However, in these situations, you may need a letter of experience as a form of confirmation:

You have recently moved to a new province. Brokers and agents only have access to your insurance information in their region.
You were insured under a company car insurance policy. In that case, you may not have an individual insurance history available for them. You will need to get a letter of experience from the fleet car insurance provider.
There’s a lapse in your insurance coverage.
You have recently moved from another country to Canada.
Your insurance company found inconsistent information in your application. Sometimes, insurance companies make mistakes that cause discrepancies in your insurance history.
You weren’t the primary driver on your previous insurance policy.

What Does the Letter of Experience Contain?

A letter of experience, also known as a car insurance letter, is brief and straight to the point. It contains this information:

Your name and policy number.
Dates of Coverage from the day your policy started until it ended.
Claims history, including frequency, severity, and fault.
Driving history.
Types of coverage and whether there are any gaps.
Information about cancellations and lapses.
Driver information.
Previous insurance provider contact details

Letter of Experience – Car Insurance Template

Below is an example of what a letter of experience looks like. All names and information here are made up for the sake of demonstration.

ABC Insurance Brokers Ltd.
123 Main Street
Toronto, ON M5V 2N8
www.abcinsurance.ca | 1-800-555-9876

Date: May 6, 2025

To Whom It May Concern,

This letter is to confirm that Mr. Daniel Thompson, residing at 456 Oakwood Drive, Toronto, ON, has held an automobile insurance policy with ABC Insurance Brokers Ltd. under policy number A1234567 from March 15, 2020, to April 30, 2025.

The policy provided coverage for a 2019 Honda Civic (VIN: 2HGFC2F59KH123456) and included third-party liability, collision, and comprehensive coverage.

During this time, Mr. Thompson’s insurance history is as follows:

Claims Filed:
- June 10, 2021 – At-fault collision claim – payout: $4,200
- January 3, 2023 – Not-at-fault collision (hit-and-run) – payout: $2,300
- November 22, 2024 – At-fault single-vehicle accident – payout: $3,800
Payment History:
- Multiple NSF (non-sufficient funds) occurrences: 3 (in July 2021, March 2022, and October 2024)
- Policy was suspended due to non-payment twice, in August 2021 and November 2024, but was reinstated upon receipt of payment.
Policy Status: Cancelled at insured’s request, effective April 30, 2025.

If further details are required, please feel free to contact us at the number listed below.

Sincerely,
Jane Roberts
Senior Account Manager
ABC Insurance Brokers Ltd.

[email protected]
1-800-555-9876 ext. 104

How to Request a Letter of Experience

Obtaining a letter of experience is usually straightforward and involves contacting your insurance provider. All you have to do is ask the insurance provider for one. And no, your insurance broker can’t provide one for you, even if you bought your insurance with them. The broker can still assist with the process, but the letter of experience has to come directly from the insurance company. Here are the steps to request a letter of experience.

Contact your previous insurance provider.
Provide necessary information, like full name, policy number, dates of coverage, and contact details.
Clearly state the information you need in your letter. This may be the policy start and end dates, types of coverages held, claims history, payment history, and reasons for policy cancellations.
Ask about processing time and fees. The time at which you’ll receive the letter varies from one insurer to another. You may receive it instantly or after several days.
Review the letter of experience when you receive it. If any information is inaccurate or unclear, contact the insurance provider again.

How Can a Letter of Experience Help You Get Cheaper Car Insurance?

A letter of experience doesn’t just help the insurance company price your insurance policy. It can also help you get lower rates, especially if you have a good driving record and payment history. Here’s how:

Clean Driving Record

A letter of experience shows your driving history, including claims made. A clean record with no at-fault accidents or violations can make you a low-risk client and qualify you for lower premiums.

No-Claims Discounts

If you’ve had insurance without making claims, a letter of experience will confirm you’re eligible for no-claims discounts, which many insurers offer for safe driving.

Smooth Transitions between Insurers

When changing insurers, a letter of experience ensures your new insurer has the correct information about your insurance history, so you’re not classified as a new or high-risk customer.

Discount Eligibility

A letter of experience can help you qualify for multi-policy or loyalty discounts by providing a documented history of your insurance coverage and claims.

Special Circumstances

If you’ve had a coverage gap or are moving to a new area, a letter of experience will provide context to your insurance history so insurers can assess your risk more accurately and offer better rates.

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Letter of Experience Insurance FAQS

Can an insurance company deny me a letter of experience?

Yes, while rare, an insurance company can refuse to issue a Letter of Experience. Reasons may be company policy, outstanding balances, or unpaid premiums on the account.

Do I need a letter of experience to drive in Ontario?

No, a letter of experience is not required to drive in Ontario. But if you’re moving to Ontario from another province or country, a letter of experience can help you get credit for your previous driving experience and potentially reduce the time and requirements to get a full Ontario driver’s license.

How can a letter of experience save me on insurance?

A letter of experience can show a history of good driving and insurance coverage, which may qualify you for discounts or lower premiums with a new insurer. It provides verifiable proof of your insurance history so insurers can assess your risk profile more accurately.

Can my car insurance documents be a letter of experience?

No, standard car insurance documents are not a Letter of Experience. While they outline your coverage details, they don’t have the comprehensive information about your claims history and overall insurance experience, which is needed to assess risk and determine premiums.

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