What Is a Letter of Experience From an Insurance Company?
Understand the Letter of Experience, your official insurance history document. Learn its importance for future coverage and how to access it.
A Letter of Experience from an insurance company serves as an official document that summarizes an individual’s past insurance coverage. This document is often requested when a person seeks new insurance coverage or wishes to demonstrate their prior history with an insurer.
Understanding a Letter of Experience
A Letter of Experience (LOE) verifies past coverage, claims history, and other policy specifics. This verification allows new insurance providers to assess the level of risk associated with insuring a prospective client. It helps them understand a policyholder’s record of payments and claims.
Individuals commonly request an LOE when applying for a new insurance policy, especially if they are switching providers or have moved to a different region. This document is also useful when there has been a lapse in coverage or when a new insurer cannot automatically access a person’s insurance history. Possessing an LOE can help a new insurer evaluate risk accurately, potentially leading to more favorable premium calculations.
Key Information Included
A Letter of Experience typically contains specific details about the policyholder and their coverage history. It includes the policyholder’s name and address, along with the policy numbers associated with their past coverage. The letter specifies the effective dates of the policy, noting both the start and end of the coverage period.
For auto policies, the LOE will list vehicle details such as the make, model, year, and Vehicle Identification Number (VIN), as well as the names and driver’s license numbers of all insured drivers. The claims history details the dates of any claims, their nature, the amount paid out, and whether the policyholder was deemed at fault. The letter also indicates any periods of continuous coverage or instances of no claims, which can be advantageous for a policyholder.
Requesting a Letter of Experience
Obtaining a Letter of Experience typically involves directly contacting the insurance provider that previously held the policy. This request can often be made through various channels, including phone, email, or sometimes via an online portal. Only the insurance company can issue this letter, not an insurance broker.
When making the request, policyholders should be prepared to provide essential information such as their full name, policy number, and the specific dates of coverage needed. Clearly stating where the letter should be sent is also important to ensure timely delivery. While some insurers may have a specific form to complete, the processing time can vary, generally ranging from a few business days to several weeks. Upon receipt, review the letter for accuracy.