*Loan,banking and credit>>>social insurance

Why is it ncessary to supply your social security number when applying for auto insurance ?

The purpose of giving your SSN has nothing to do with verifying your identity. It is for credit purposes. Insurance companies have recently started rating policies partially according to your credit score. They have found a correlation between someones credit score, and their frequency of claims. However, most insurance companies will still provide you with a quote if you refuse to give your SSN, however, it will probably be pretty high, because they are going to rate you in the "worst credit" category.
Hope this helps! Source(s): Property/casualty agent.

to prevent fraud, they have to make sure that the driver of the car is the person getting the insurance and vice versa. If you are in an accident and you are not the driver that is insured to that vehicle, they dont have to pay. Car insurance is really for the drivers of the car and the car, not just the car only.
Your credit rating lends to determining your rates as well. So they need that to pull your credit report.
It is to verify your identity and now many auto companies run credit checks before writing insurance, so it is used for that purpose as well.
I work in insurance in NC
im a licensed insurance agent in ca. i ONLY need someones SSN AFTER ive quoted them and determined their premium based on their driving record, what type of car they drive , how many miles they drive and where they live. i need the SSN to determine how much down payment i require, if they decide not to pay in full. the better your credit rating ( idont get a full report, its a "soft" check) the lower your down payment is. the reason for that is to determine the likelyhood that youll make your payments on time.