Why Do Car Insurance Companies Need My Social Security Number?


Would you allow an insurance agency to take your social security number when offering you a quote? Why do car insurance companies need my social security number? Some people may not know any difference, but there are those that stay on top of legal processes such as this. When an agent uses your social security number they will retrieve information based off your ability to pay your finances and your credit score. This is now legal in most states but you should check before you willingly give it out.

So Why Use Your Social Security Number

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Why do car insurance companies need my social security number to determine my credit score? Behind your back, researchers have determined from studies that credit scores and rates at which you might file a claim with your insurance are interrelated. If you have a bad credit score, chances of your insurance company paying for claim are highly likely.

Why Do Car Insurance Companies Need My Social Security Number To Give Me a Policy?

Ok, so now they have my social security number, now what? The number will be used to compare with any other information you have given them to confirm your trustworthiness. It is verified against your current address to confirm if you live where you state you do. It also determines if you are a legal US citizen and if you are legally licensed to drive. It is not always directly related to you. Insurance agencies also must report required information to certain agencies about customers they give policies to. In case of accidents, the police may also get involved and require documentation from the insurance company about your policy.

I do not want them to have my social security number so why do car insurance companies need my social security number? No matter your reasoning and debate, if an insurance agent asks for your social security number you should either give it to them, or research your state’s policies beforehand to prove if you should be giving out your personal information.

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  4. What Can I Do If My Car insurance Company Is Not Helping Me?
  5. Can Cheap Auto Insurance Ruin My Credit?

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