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| *Loan,banking and credit>>>social insurance |
Why do auto insurance company ask for social security number when asking for a quote? |
must i give my social security number if i were to purchase a auto policy? To distinguish you from someone else of the same name in there database. They want to check your credit report. It sucks Oregon is trying to pass a law to prevent this. believe it or not......they base it based on your credit bureau report. if it sucks, you get higher rates. not sure when and who thought of that, but i think that is just terrible. i know there are some states that want to stop this practice. i sure wish i was in one of those states! seems like it should have nothing to do with the credit report. oh by the way, each time someone looks at your credit bureau report, this shows an inquiry on your report and reduces your score. It is not required for a quote at http://www.surfquotes.com/autoinsurance.... you can get a low rate quote without providing your social security number. Insurance companies use information contained in your credit report to help determine rates because statistical data collected has indicated that people with better credit are less likely to file claims and are considered a "lower risk" client. NO, it isn't fair across the board, but it also doesn't mean that you always pay higher premiums. It means that if you have better credit you have the potential to be placed in a better pricing tier...or the opposite can happen. YES, there are people with sucky credit that have perfect driving histories and this ruling STINKS for them. There are several states that have disallowed the usage of credit even though these same states had to approve it several years ago before it could be used to begin with--the insurance industry is one of the most highly regulated that exists and EVERYTHING your insurance company does in the way of pricing and underwriting criteria has to be APPROVED by your state's DOI before being put into effect, BUT the states that have disallowed the usage of credit scoring (very different than if you went to go get an actual loan--it is considered a "soft hit" and in most situations does not affect your credit score at all, it actually has it's own category and isn't a regular 'inquiry') have higher rates across the board because the supporting statistical data and subsequent underwriting criteria are disallowed. Due to the Patriot Act, they must ask for SSN to verify you are not on the governments list of known terrorists, it has absolutely nothing to do with your rates, rates are based on age, marital status, and driving record only. |
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