Friday, May 20, 2022

Do Insurance Companies Need Your Social Security Number

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Can The Insurance Company Legally Require That I Share My Ssn And Drivers License Number

Changes That Could Come to YOUR Social Security Benefits? (Hardly!)

Yes. And in turn, you can refuse to provide it. And in turn again, the insurance company can decline to sell you a policy.

In other words, both parties are basically free to deal with this request however they like, so long as no federal laws are violated. This is why the advice you find online about guarding your Social Security number encourages you to push back and ask why it’s needed instead of arguing about the law.

There are some times when you’re legally required to give your SSN, specifically with some government agencies.

What Is Social Security Number

This was not the case in the past where people filed for social security numbers after birth, and in fact, it was not necessary to do so until they were approaching working age. So it may be possible that you have one and you are not aware of the number. There is a database that the Social Security department keeps, so it is possible to contact them to find out if you have a social security number. If you do not have one, you must obtain one via filing form SS 5 and providing specific proof of birth and other characteristics, so the IRS has documentation that this is you. Therefore, a social security number is significant to have and is a requirement for all US citizens.

Re: Use Of Social Security Number To Obtain Insurance Quote

Question Presented

1. Are automobile insurance premiums based solely upon an individuals driving record?

2. May an insurer obtain an applicant’s social security number in order to give an insurance quote?

3. What steps does an insurer need to take to protect the privacy of insureds and applicants?

1. No, there are a number of factors, including the applicants driving record that determines an automobile insurance premium.

2. There is no law prohibiting insurers from requesting a social security number. An insurer has the right to ask for a social security number where the information is reasonably related to underwriting. One such purpose is to obtain a credit report of an insured.

3. The use of the social security number is subject to the requirements of the Department’s Privacy Regulation, N.Y. Comp. R. & Regs. tit. 11 Part 420 and N.Y. Comp. R. & Regs. tit. 11 Part 421 .

Facts

The inquirer states that the inquirer requested auto insurance quotes from the inquirers local insurance agent who informed the inquirer that he needed the inquirers social security number to obtain the quotes. The inquirer would like to know why insurers need the social security numbers, and whether driving records are the only factor that determines an automobile insurance premium. Second, is it mandatory to give the social security number, and finally what steps must an insurer take to protect the privacy of the insureds and applicants.

Analysis

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Can I Get Car Insurance Without A Social Security Number

Some car insurance companies let you buy coverage without a social security number. There is no federal law that says they must or must not demand a social security number. Instead, it depends on the companys policies.

You may find companies through CarInsurance.com that make your SSN optional during the purchase process, while others require it. If you don’t have a social security number and need to get car insurance, you can call our service center at 855-430-7753 and see about getting insurance auto insurance quotes without a SSN. They will assist you so you can purchase a policy.

CarInsurance.com uses auto insurance companies that check credit-based insurance scores as a factor in your insurance rate. We also have carriers that don’t use credit in their calculations in some states. Even without an SSN, some car insurance companies will use your name, date of birth and address to obtain an insurance score .

There are controversies over the use of credit scores for rating, but the bottom line is that car insurance companies have not been able to find a better indicator of risk other than using a simple credit-based insurance score. Its not less controversial than the use of gender or marital status as a factor. Each of these items has come under public scrutiny as biased and a form of profiling.

Why Life Insurance Companies Need Your Driver’s License Number

Do Car Insurance Companies Need Your Social Security ...

The insurer uses your driver’s license number to check your driving record for any moving violations, accidents or license suspensions.

As with the prescription drug database check mentioned above, this is a way for the insurer to find things that have been proven to affect an applicant’s risk profile but that the applicant might not think is important.

Life insurers, long-term disability insurers, auto insurers and more will use motor vehicle reports, or MVRs, to see what sort of dings against your driving record, like speeding tickets or DUIs, you’ve accrued over the years. Because insurers want to see how risky you are to insure, they’ll use these to determine your final life insurance rates.

Your driver’s license number may also be used along with your SSN to help verify your identity, since most states require your SSN before issuing you a driver’s license.

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Not sure which company is best for you? Our licensed experts can help you make the right choice.

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Fears Over Revealing The Social Security Number

If there was one thing many people feared, it would be identity theft. Access to personal information opens the door to being a victim of this crime.

A social security number that falls in the hands of an identity theft could create major havoc. Hence, many would be unwilling to easily give out the number.

It is worth pointing out that insurance companies go to great lengths to protect the privacy of their customers. Information given to the insurance company is hardly easily accessible.

Additionally, those who are worried about identity theft should think about buying identity theft insurance. Various companies that sell auto insurance may also provide identity theft protection insurance as well.

Why Do Car Insurance Companies Need Your Social Security Number

Your Social Security number doesn’t have much to do with your driving record, but it does help the insurer pull the reports that help determine your rates.

The online insurance quote process has two steps: getting a quote and purchasing a policy.

One reason a Social Security number is usually required is that it makes it easier to pull reports that verify the information you have given during the quoting process and help finalize the actual premium amount you will pay. Auto insurance companies can use your name and home address to pull your motor vehicle record, but there they have a much higher accuracy if they also use your Social Security number.

Another reason your Social Security number may be needed is so the insurance company can run a . Credit history has been shown to be a good predictor of insurance claims. Many auto insurance companies use insurance scores based on your credit report, and if your credit is not verifiable, you may pay a higher car insurance rate. Those carriers that don’t require a Social Security number will use your address and name in order to calculate an insurance score.

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Its All About You We Want To Help You Make The Right Legal Decisions

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesnt influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

You should never give an insurance adjuster your social security number you are not required to provide it and generally, it is not necessary for an adjuster to have it. No one, other than a taxing authority, has a right to that number since it is the key to your entire life, and now, the insurance company knows more about who you are, some of which could be damaging to you in any claims.

Is My Social Security Number Safe With An Insurance Agent

Who Needs Your Social Security Number?

From experience we can tell you that we try and not keep people’s social security numbers here are Marindependent and WholeVsTerm. What we do is input the number directly into a carrier system and then we more or less do not see it again. Of course this does not mean that socials can not be stolen. We recognize this and make numerous efforts to safeguard systems.

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If You Have Been Victim Of Fraud

You can ask for a new SIN only if you can prove that your SIN was used fraudulently.

However, getting a new SIN will not necessarily protect you from fraud or identity theft. If someone else uses your old SIN as identification and the business does not check the person’s identity with the credit bureau, credit lenders may still ask you to pay the impostor’s debts. Each time, you will have to prove that you were not involved in the fraud.

If we issue you a new SIN, you will need to contact all your financial institutions, creditors, pension providers and employers to ask them to update your files.

Note: Service Canada cannot correct a credit file. It is up to you to contact your financial institution, report any discrepancies and have them resolved.

If you have proof that someone else is using your SIN, an investigation is required.

An indication that your SIN is being used fraudulently is when you receive a Notice of Reassessment from the Canada Revenue Agency concerning undeclared earnings. This means that another person has used your SIN for employment purposes or to receive other taxable income.

You must visit your nearest Service Canada Centre with your original proof of identity documents and provide proof that another person has used your SIN.

Here’s what you will need to provide to Service Canada if you suspect someone is using your SIN:

Whose Social Security Numbers Are Needed

Believe it or not you will need more than just the insured’s social security number. In general you will need to know the beneficiaries as well. This is for their protection to assist them in getting any potential death benefit. If you do not have a social security number on file for your beneficiaries you may risk a legal proceeding or a delayed payment. From an insurers perspective having social security numbers when they pay money out allows them to file all of their important paperwork with the IRS.

  • The Insured / Policy Owner
  • Primary Beneficiary
  • Secondary Beneficiary

There is also another reason for this. If the beneficiary is not a US Citizen there is a complex process that must be followed if the proposed beneficiary is to get their money. Having a valid social security number confirms with the insurer that you are a US Citizen.

Also Check: How Much Do I Have To Pay Into Social Security

Cant Life Insurance Companies Check This Stuff Without My Ssn

The Social Security number has become a reliable and universal way to verify your identity. In fact, itâs tied to your identity throughout industries, for everything from your grades at university to checking your credit to checking court records and recent life insurance applications.

There’s technically no reason that each group can’t use an internal identification system instead of Social Security numbers. But many industries use the SSN as a catch-all identifier, and the insurance industry is one of them.

Why Insurance Companies Ask For Your Social Security Number

New or Replacement Social Security Number and Card

One of the more common questions that insurance agents get is: Why do Insurance companies Need my social security number? Consumers are smart to ask this intelligent question, given how many social security number thefts there are.

The good news on this front is that more and more Auto and Home insurers are not requiring social security numbers and are instead relying on drivers license numbers. This makes good sense since most auto insurance requires a drivers license. However the rules and regulations for auto and home insurers vary by state. Some states have more strict guidelines about the use of social security numbers in determining insurance quotes.

The unfortunate news for life insurance and annuities is that just about every life insurance company in the United States requires social security numbers. Until such time that a national identification number is established I do not image this changing.

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Is My Social Security Number Safe With An Insurer

The short answer to this one is that your social security number is as safe as the insurer makes it. However given the fact that the pentagon is not entirely free of cybercrime, there really is no true safe place for social security numbers anymore.

However, life insurers do require social security numbers. If you believe and want a term or whole life insurance policy than you must hand over your social security numbers, .

Therefore if you want to protect your social security number, as you should, I always recommend that people Freeze their social security number with the big three credit agencies: Experian, Equifax, and Transunion.

When Opening An Account With Any Us Financial Institution

Since 1970, the federal government has required banks to obtain customers Social Security numbers or an Individual Taxpayer Identification Number .Financial institutions use your SSN to check your credit, to report your interest and investment income or losses to the IRS, to report your tax-deductible mortgage interest to the IRS, and to manage your account.

As an alternative, some financial institutions will accept a taxpayer identification number , which youll need to apply for through the IRS.

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How Service Canada Protects Your Sin

Service Canada stores personal information requested to apply for a SIN in the Social Insurance Register. This information includes your name, date of birth, place of birth and your parents’ names. Dates of death are also recorded in the Register.

Service Canada protects your SIN in the following ways:

  • we store your personal information carefully on our premises and in computer systems that are only accessible to authorized employees who have a “need to know”
  • we provide guidance about how to protect your SIN and your personal information

We Handle Your Personal Injury Claim So You Can Focus On Your Life

Open an LLC Business In USA Without a Social Security Number or ITIN

After a personal injury, contact the attorneys at Sally Morin Personal Injury Lawyers. We handle many areas of the law, including personal injuries in severe car accidents. We believe you should be able to focus on recovering while we handle the legal details.

We truly care about the people of California. Contact us today for a free online case evaluation.

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If You Have Medicare Or Medicaid

If you have either of these but you still dont want to give the insurance company your social security number, there is a form you can sign to verify you are not covered by Medicare or Medicaid. Simply ask your adjuster for this form instead.

You are not required by law to give out your social security number. If you feel uncomfortable doing so, its good to remember that in most cases, your insurance adjuster wont need it.

How To Get A Social Security Number

Social Security requires an in-person meeting to apply for the number. Furthermore, as Social Security shuts workplaces to general society back in March, this puts your new foreign Fiance or spouse in a difficult situation. Luckily, I, as of late, went through this process with a customer of mine. So you can get an SSN for your Fiance or spouse. I work for you to get ready and specialty your applications to submit to US Immigration. Once in a while, guests ask me, Do I fill in the forms for them, or do they need to do it themselves?. It will be ME filling in every one of the needed forms and assembling your application. After we present your application, I do not abandon you. I stay with you on this excursion.

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I proceed close by specifically helping and managing you until that sunny day your unfamiliar accomplice calls to say she or he is in transit. Now, we should discuss How to get that elusive Social Security number while Social Security workplaces are on Covid 19 lockdown. Normally to acquire a Social Security number , in the wake of moving to the USA on a spouse, relative, or life partner visa, one goes face to face to the closest Social Security Administration office presents distinguishing proof and gets the SSN a month later.

Steps

Stage 2: Over the telephone, give itemized data about your life partner, including his/her nearby contact data and phone numbers.

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Steps

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Your Social Insurance Number Is Confidential

If your SIN falls into the wrong hands, it could be used to obtain personal information and invade your privacy. When the SIN is not linked to you as its rightful owner, another person could receive your government benefits, tax refunds or bank credits. Your personal information could also be revealed to unauthorized people, which could lead to identity theft and other types of fraud.

If someone uses your SIN to work illegally or to obtain credit, you may suffer hardship. You could be requested to pay additional taxes for income you did not receive or you could have difficulty obtaining credit because someone may have ruined your credit rating.

There are a number of things you can do to protect your SIN:

  • provide your SIN only when you know that it is legally required
  • store any document containing your SIN and personal information in a safe placedo not keep it with you
  • contact Service Canada if you change your name, if your temporary citizenship status changes to a permanent resident status or if information on your SIN record is incorrect or incomplete
  • take immediate measures to protect your SIN when you suspect someone else is using your SIN fraudulently

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