Here’s a secret that very few people know about: most drivers are overpaying on their auto insurance policies. These are not slightly over-payments either. It’s typical for drivers to be paying between 15% to 35% more than they need to be. These high insurance bills can add up to hundreds, if not thousands, of extra dollars each year. The reason why so many people are unaware of this fact is that they signed up with the first insurance quote they got.
To combat this wastefulness, all you have to do is get insurance quotes from a bunch of different auto insurance companies, right? Not quite. If you don’t know what you are doing, you could be hurting your credit score or increasing the chances of having your identity stolen.
Auto insurance companies use a variety of factors to figure out the correct insurance premium for an individual. Some of the factors deal with the vehicle that you are insuring: make and model, safety features, anti-theft devices, mileage, etc. The most important factors, however, deal with your own personal information: your driving experience, your claims history, your credit risk, etc. The riskier the auto insurance company sees you; the more expensive your insurance policy will be.
Why Do Some Auto Insurance Companies Use Your Personal Information?
How do you think some car insurance companies determine your risk as a driver? They do this by analyzing various pieces of your personal information. Auto insurance companies have a wealth of statistical data to assist them in estimating your risk. They don’t do this manually. Instead, they enter all of this information into specialized actuarial software that does all of the calculations for them.
Now Here’s Where Things Tricky:
Another thing that insurance companies use to determine risk, and therefore what to charge on a policy, is the credit score of the person needing to be insured. Keep in mind that the best way to find the cheapest auto insurance policy is by getting quotes from several different insurance companies. But the funny thing about credit checks is that getting too many requests for them can negatively affect your overall rating. So in your pursuit to ensure that you are not paying too much for auto insurance, if you provided your social security number to 7-10 insurance companies that then each sent requests to the credit bureaus inquiring about your credit history, you might be inadvertently hurting your credit score.
Not only will having your credit score go lower make you end up paying more for your auto insurance, but it could also affect your ability to secure low-interest rates on a mortgage, hurt your chances of getting a job, preventing you from renting a car, and so forth. In our credit-based society, the last thing in the world that you want to do is to damage your credit history.
Make no mistake, when you do choose an auto insurance policy to purchase, you will need to provide your social security number for the insurance company to verify your personal information, including your identity. But when you are at the stage of comparing insurance quotes and want to remain anonymous, there’s no good reason to give sensitive information like your social security number.
To provide an accurate quote, the insurance company will need to know various pieces of information about you. They will need to know your age, gender, occupation, and the type of residence in which you live. They’ll also want to take a look at your driving history and how you plan on using the vehicle.
Reliable insurance companies typically start with just asking for your zip code. They need this information to learn about the community that you live in, especially wanting to discover what the crime rates are in that area. Using this info along with the necessary, non-sensitive personal information you provided about yourself, an insurance company should be able to give you a reasonably accurate insurance quote.
Getting an Anonymous Quote Without Your Personal Information
Auto insurance companies that ask for sensitive data like social security numbers or driver’s license numbers in order to give you an insurance quote should be avoided. Besides the possibility of negatively affecting your credit score with excessive requests for your credit history, providing this type of sensitive information improves your chances of having your identity stolen. With this data, identity thieves have everything they need to create multiple accounts in your name, ruining your credit for years and causing intense stress and frustration trying to find these fraudulent accounts and clear your name.
If you do decide to use a smaller insurance company that you have never heard of before, it’s a smart decision to verify their business identity and make sure that they are who they say they are before giving them your sensitive personal information.
Why jeopardize your credit score, your SSN, or increase the possibility of getting your identity stolen to get an auto insurance quote? At 4AutoInsuranceQuote.com, you won’t have to provide sensitive information like your social security number just to get an accurate quote. Scroll back up to the top of the page and submit your zip code now to safely begin your search to find the best auto insurance rates online.