Have you ever wondered how insurance companies can magically know VIN’s, Drivers license numbers, and even loss histories?
Well here is an industry secret…Magic…
By magic, we mean reporting agencies such as Lexus Nexus. These companies, like Lexus Nexus aggregate data for a wide variety of industries. They then gatekeep who has access to such information through background checks and inspections on the property, then limit the data based on your need.
Even in the wonderful world of Harry Potter, using magic wasn’t always a perfect solution. Sometimes the data can be incomplete, or flat out incorrect based on the information provided by the insurance company. You will need a letter of experience to clear the air on any discrepancies with these reporting agencies.
Here are some examples of why you may need a letter of experience.
You may have an at-fault loss on your file and not know it!
You, the insured, are rear-ended by another party. If you have collision coverage, you can claim the loss on your coverage. The insurance company will then seek to subrogate their payout and your deductible back. Depending on the company policy, they may list this loss as an at-fault loss until they recover the money. Subrogating could take anywhere between 90 days to years, depending on the severity and other parties.
Even after the settlement has cleared, it may still appear to be an at-fault, causing you to have an at-fault loss on your file for at least five years.
Newly licensed/young drivers who are now paying for their insurance.
Young Drivers While it is crucial to have all household members on the same policy, the named insured is often given credit for the insurance history. For young drivers who decided to stay home or continue education within 100 miles of their parents, you may find yourself with higher than usual rates.
With a letter of experience, we can show reliable insurance history and often provide options to otherwise closed markets, allowing for greater coverage and lower premiums.
Moving out of the country or coming back
Many insurance companies will not insure individuals without at least six to twelve months of prior insurance history. Those companies who will charge an arm and a leg. There are exceptions to the rule, yet these are limited.
Getting these letters are often painless and as easy as calling the insurance company even if the policy is no longer in force. Make sure you are specific on what you want them to say. They should include details such as:
- Who, and what was insured.
- Timeline in which the company insured said items.
- Claims paid and details regarding claims.
- Details on the break-up.
A good insurance agent can accompany you on the phone with the said company as well! Having an advocate to speak the jargon can make the experience all the easier as well!