Why Do Insurance Companies Ask for Social Security Numbers?

Many people get protective when they need to give sensitive information about themselves, especially online. That is why they often ask these questions. Is social security number (SSN) required to buy an auto insurance policy? What is the significance of social security number in car insurance premium calculations? These questions are answered below.

A lot of information is loaded on your social security number. It is like a national identification card. Driver license numbers don’t offer this much information as they are issued by one state and mostly records the information within that state. Also, SSN is like a key auto insurance companies need to open up reports about you. Therefore, it is a significant information to be had before they can properly assess the risks that come with insuring you.

When you ask to be insured by a company they carry out some checks on you. They look at your driving history and CLUE (Comprehensive Loss Underwriting Exchange) report to see if you have been obeying driving rules and avoiding accidents. Nearly all of them run insurance credit score checks on you as well. So, yes, they will need your (and other drivers’ in your household) Social Security Number, Driving License Number and date of birth to offer you the best car insurance rates possible.

Nonetheless, it is perfectly legal to refuse providing your SSN to any company that asks for it. However, this could be interpreted as you are hiding incriminating details. If an auto insurer accepts to offer you vehicle insurance coverage without your Social Security Number they would probably bump up your rate due to extra risk associated with unknown information. Furthermore, they can report your refusal to credit agencies which could result in loss of credit score points.

Can You Get Auto Insurance Quotes without SSN?

On the other hand, you can get automobile insurance quotes without Social Security Number (SSN). There are some questions on quotation forms relating to information they can find using your SSN and you will need to answer them. It is probably best to get your quotes first as you wouldn’t want to give your sensitive details to every company you want prices from. You should get at least five quotes before worrying about which car insurance is best for you.

Once you make a choice you will probably be asked to provide all these details for the company to complete their checks. All being well, the quotation you received earlier would stand. Otherwise, you may see slight difference in the final premium on offer. That is why it is important to provide accurate details in the first place.

It is possible to get car insurance without social security number with few auto insurers. This would be especially handy for arranging car insurance for non-US citizens visiting the country. Vehicle insurers may appear to be too noisy and want to know a lot about you and other drivers insured. However, this is the new trend in the insurance industry. They try hard to get premiums as accurate as they can so that good drivers aren’t penalized unnecessarily and bad drivers don’t slip through without paying enough premium for their risk profile.

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