Why Do Insurance Companies Need My Social Security Number?

WV & OH ONLY

"An agent asked for my Social Security number for a car insurance quote. Why do they need that, and do I have to give it?"

It's completely reasonable to pause before giving that number to anybody.

Mostly so the company can find the right person's records. Your Social Security number helps match you to your own credit file and history, and not to someone with a similar name. I haven't found a West Virginia or Ohio law that requires it for a quote, but without it the company may not find your records, so we usually can't trust the price.

I wish we could quote you with less paperwork. We ask because we want the best rate for you, and that takes the right records.

Companies handle this differently. Some will work with less, and some won't. We can tell you which is which, and you'll be giving your information to a person you can look in the eye.

Full disclosure, this post exists to get you on the phone. If you're nervous about giving your number out, that's healthy. Call and ask me anything about it first.

WV & OH ONLY

Matching. In a letter to the National Association of Insurance Commissioners, LexisNexis named Social Security number and date of birth among the things used to match someone to a file, and said missing or wrong information can keep a file from being found.

If you're John Smith, you can see the problem. Nobody wants John Smith's tickets on the wrong John Smith.

The clearest regulator opinion I've found is from New York, so it doesn't apply here directly. New York's insurance department said a company may ask when it's reasonably related to underwriting, you aren't required to provide it, and the company may decline to quote you without it.

The company may be unable to find your credit information, so the price you see usually isn't one you can count on. In West Virginia, Bulletin 20-12 sets out how missing credit information can be treated, and neutral is only one option. So leaving it off isn't automatically a win or a loss.

No. We pulled a paper auto insurance application from 1979, and it asks for a Social Security number. What's changed is how much a company can find once it has it.

• Give it by phone or in person, or through a secure form
• Don't send it by regular email or text
• If someone calls you out of the blue asking for it, hang up and call the agency's number yourself

Got questions about what we do with your information? Ask me. Then let's get you a real quote.

WV & OH ONLY

Next in the series: Part 6, Insurance Lapsed in WV? Start Here.