Q&A: Why does my insurer need my Social Security number?
Q. Before my homeowners insurer would give me a quote on auto coverage, it wanted my birth date and Social Security number. Why is this necessary?
A. Your personal data allow the insurer to access your credit records, which companies use to place drivers in risk classifications. Those with good credit histories tend to pay less for car insurance.
Of course, you can refuse to give information to any business that requests it. Before you give out your Social Security number, ask why it’s needed, how your number will be used and protected, and what the consequences will be if you refuse. And "don’t give the information out to a company or agent you’re not familiar with," cautions Jeanne Salvatore, vice president for public affairs at the Insurance Information Institute.
Posted by: Dave | Apr 24, 2008 9:03:41 PM
It's amazing how many organizations ask for your SSN. I always ask and most of the time, they don't really need it. It's often a unique identifier many use for records. Most of the time, they don't demand it.
Posted by: John | Apr 27, 2008 3:41:16 PM
Enterprise Car Rental used to request a person's SSN, using it as a "unique customer identifier." When they asked for mine, I refused, knowing full well that their computers can easily generate such an index. I don't think they use SSN's this way any longer.
Sears requests your SSN if you forget your Sears charge card; this is more of an authentication method, so I believe it's warranted.