A letter of experience in insurance is a document from your current or former insurer that summarizes your coverage history: policy dates, claims filed, payouts, and how the policy ended. You request it directly from the insurer that issued the policy, and you hand it to a new carrier when you apply for coverage or switch companies. Underwriters use it to size up your risk and set your premium.
What the Letter Shows
The document ties your identity to a specific coverage record. It includes your legal name, policy number, the type of insurance (auto, homeowners, commercial liability, and so on), and the exact dates your coverage was active. Those start and end dates matter, because gaps in coverage are one of the first things underwriters look for.
Claims history is the heart of the letter. Expect it to list every claim you filed during the policy period: what happened, when it happened, how much was paid out, and whether any legal disputes or settlements were involved. For auto insurance, it typically notes whether you were at fault. Two water-damage claims in three years tells a different story than one windshield replacement, and underwriters read for those patterns.
The letter also records how the policy ended. A voluntary cancellation because you found a better rate looks very different from a non-renewal triggered by too many claims, or a cancellation for missed payments. If you added endorsements or raised your coverage limits during the policy, those changes may appear as well.
Why a New Insurer Wants It
Underwriters treat the letter as a risk profile. A clean record with continuous coverage and no claims almost always translates to lower premiums. A history of frequent claims, at-fault accidents, or coverage lapses pushes costs up and can lead to outright denial. The letter shapes the policy itself, too. Insurers may waive waiting periods, offer broader coverage, or reduce deductibles for applicants who can show a strong track record. A rough history can mean exclusions for specific types of damage or higher out-of-pocket costs before coverage kicks in.
Many auto insurers offer a claims-free discount if you’ve gone a certain number of years without filing a claim, and the letter of experience is how you prove it. The typical look-back window is about three years, though some carriers check further. Qualifying for that discount is often the single easiest way to lower your premium when switching carriers.
How To Request One
Contact your current or former insurer directly. Most companies accept requests through their online portal, by email, or by mail. You’ll typically need to provide your name, policy number, and some form of identity verification. Some insurers have a standardized request form; others just need a written request with those basics.
Ask early. Processing can take anywhere from a few business days to a couple of weeks, and delays are common if your policy is older or the insurer has changed systems. Requesting the letter well before your new policy’s start date or renewal deadline prevents a scramble. Most insurers will cover at least three to five years of history. CLUE reports, which insurers frequently cross-reference, go back a full seven years for both auto and property claims, so don’t assume an old claim has disappeared just because it feels like ancient history.1Consumer Financial Protection Bureau. LexisNexis C.L.U.E. & Telematics OnDemand
Check the Letter Before You Send It
When the letter arrives, read it carefully before forwarding it to your new insurer. Check every date, every claim amount, and every coverage period against your own records. Errors happen. An incorrect at-fault determination or a claim attributed to the wrong policy year can cost you real money in higher premiums.
A claim listed under the wrong date might fall inside a look-back window when it shouldn’t, or an incorrect payout amount could make a minor incident look major. When underwriters spot discrepancies between your letter and what CLUE or A-PLUS shows, they’ll pause the application and ask for additional documentation, which can delay coverage by weeks. If you find mistakes, contact the issuing insurer immediately and ask for a corrected version in writing.
When you do send the letter to a new carrier, use the insurer’s secure portal or encrypted email rather than an unsecured channel. The document contains enough personal and financial detail to matter.
If You Own a Business, Ask for a Loss Run Instead
Commercial policies use a different document called a loss run. It serves the same basic purpose as a letter of experience but tends to be more detailed, listing every claim filed under a commercial policy along with reserves (the amount the insurer set aside for claims still being resolved), individual payout amounts, and open-versus-closed status. Loss runs are standard in commercial lines like general liability, workers’ compensation, and commercial auto.
The requesting process is the same: ask your current or former carrier. Business owners should request loss runs at least 30 days before a renewal or new application, because commercial underwriting timelines are tighter and a missing loss run is one of the most common reasons a quote gets delayed. If your business has had multiple policies across different carriers, you’ll need a separate loss run from each one. Industries like construction, trucking, and hospitality face intense underwriting scrutiny, and a loss run showing repeated liability or property claims can meaningfully change policy terms.
When the Old Insurer Can’t or Won’t Provide One
Sometimes the old insurer has gone out of business, lost your records, or simply won’t respond. Industry databases can fill the gap.
The most widely used is the CLUE (Comprehensive Loss Underwriting Exchange) report, operated by LexisNexis. It collects up to seven years of auto and homeowners claims data and is one of the first places a new insurer will look to verify what you’ve told them. You’re entitled to one free copy every 12 months, and the company must provide it within 15 days of your request.1Consumer Financial Protection Bureau. LexisNexis C.L.U.E. & Telematics OnDemand You can request your report online at consumer.risk.lexisnexis.com or by calling 866-897-8126.
For property insurance specifically, Verisk operates the A-PLUS (Automated Property Loss Underwriting System) database, which tracks up to seven years of property loss history. Consumers can request a free copy of that report as well.2Verisk. A-PLUS: Loss History Reports for Personal Lines
Pulling your own CLUE and A-PLUS reports before you start shopping is one of the smartest moves you can make. You’ll see exactly what insurers will see, and you can dispute errors before they affect your quotes rather than after a surprisingly high premium arrives.
Fixing Errors and Handling Denials
If a new insurer denies your application or offers unfavorable terms based on information in a letter of experience, start by asking exactly which data point triggered the decision. You’re entitled to know. Then compare that data against your own records: past policy declarations pages, claim settlement letters, and your CLUE and A-PLUS reports.
When the error is in the letter itself, go back to the issuing insurer with documentation showing the correct information and request a revised letter. When the error is in CLUE or A-PLUS, file a formal dispute with LexisNexis or Verisk. Because those databases qualify as consumer reports, the Fair Credit Reporting Act gives you the right to dispute inaccurate entries, and the agency must investigate within 30 days. If the disputed information can’t be verified, it must be corrected or removed.3Office of the Law Revision Counsel. 15 USC 1681i – Procedure in Case of Disputed Accuracy Include copies of your supporting documents when you file, rather than just describing the problem.
One nuance worth knowing: the letter of experience itself isn’t directly governed by the FCRA, because it comes from an insurer rather than a consumer reporting agency. The databases insurers use to verify it are. If your letter is accurate but CLUE has an error, a new insurer will usually trust the database over the letter, so disputing the database record is the more effective fix.
If an insurer refuses to correct verified errors or you believe it has acted improperly, every state has a department of insurance that accepts consumer complaints and can investigate.4National Association of Insurance Commissioners. How Do I File a Complaint Against My Insurance Company