The impetus of this article is simple – we are asked multiple times a day by well-intentioned investors... More...
That is a question we get asked all of the time and it has NOTHING at all to do with InsuranceForInvestors! Almost all standard insurance companies doing business in the United States require both a Social Security Number as well as a Date of Birth for the primary applicant on an insurance policy in order to be able to process a quote. This pertains primarily to dwelling and homeowner policies. You may not agree with it and you may not like it, but that’s simply the way it is. The carriers use your social security number and date of birth to verify prior losses and claims as well as to develop an insurance score – if appropriate. If you choose not to provide this information that’s fine and it’s certainly your prerogative, but be aware that we may be limited to only a few select companies that will provide quotes without an SSN being provided and these quotes may not be completely accurate because no insurance score was developed. It is not up to InsuranceForInvestors as to whether or not to obtain this information, it is a requirement of almost all insurance companies and we have no control over this.
Also, insurance agents NEVER see anyone’s credit score, all that is seen is a premium at the end of the quote. All premium and insurance score calculations occur internally and agents have no access to your credit information. Although you are not applying for ‘credit’ in the true sense of the word, the insurance industry is based on statistical and actuarial risk analysis and management, and statistically speaking, individuals with lower FICO (credit) scores have a higher propensity to file a higher-than-average number of claims for higher dollar amounts. Therefore, when creating an accurate quote for the risk involved, the insurance carrier needs both the applicant’s Social Security Number and Date of Birth to verify identity and retrieve credit data in the background in order to determine a premium rate appropriate for the risk.
For a more detail explanation of how and why your social security number is used, read our related article by clicking here.