Identity

• Even though it was never initially meant to, your SSN is an almost foolproof way to verify your identity. In fact, you will be hard-pressed to find a business willing to extend insurance coverage, credit, or even employment to you without first getting a valid SSN.
  
  

Residency

• Some drivers attempt to obtain insurance coverage through a state other than their state of residency to take advantage of reduced premiums. With your SSN, an insurance company can pull a background report and determine your true state of residency.
  
  

Driver's Abstract

• Your SSN is linked to your driving history, which an insurance company can review by obtaining your driver's abstract. This helps the insurer determine your future policy's premiums and limits, or determine whether they should offer you a policy at all.
  
  

Credit History

• Credit history and score both play a big part in an insurance company's decision to cover you. Your SSN is needed to review your credit history.
  
  

Security

• If an insurance company does choose to cover you, your SSN will likely become a telephone security feature, which is an easy way to verify your identity and protect your account.
  
  

Legal Requirement

• Regulatory insurance agencies at both the state and federal level require insurance companies to report certain information about their customers, including their SSNs.