When pursuing an insurance claim, the insurance company is likely to ask for your social security number (SSN). This is especially likely for a personal injury claim (a car accident, a product liability claim, a dog bite, etc.). If you are reluctant to give out this information, we don’t blame you. So, do you have to give this information? The short answer is no, you don’t.
There is no legal requirement for you to do so. It helps you to know why an insurance company might want this information, what they might do with it, and what might happen if it falls into the wrong hands.
Why the Insurance Company Might Want Your SSN
There are several reasons why an insurance company might want your social security number:
- Federal reporting requirements: If you are on Medicare or Medicaid, the insurer might need your SSN to comply with federal reporting requirements (see the next section to find out why that still doesn’t entitle them to your SSN).
- Identify verification: The insurance company might simply seek to use your SSN to verify your identity and thereby lower the risk that they will end up paying a fraudulent claim.
- Investigation: The insurance company wants to go on a “fishing expedition” with your data and personal history. For example, the insurance company may try to use your personal history and medical records to find a pre-existing injury. If they succeed, they may argue that your current injury is unrelated to the accident, potentially reducing or eliminating their liability.
- Future surveillance: The company might want to track you in the future by quickly learning about any new injuries or illnesses, for example. If they can do this, they can perhaps attribute some hypothetical future claim of yours to a ‘pre-existing injury.’
- Evaluation of your credit history: An insurance company can use your SSN to check your credit history. If they find out you have bad credit, they might attempt to discredit you by arguing that your financial problems, rather than your injuries, are what is really motivating your claim.
- Medicare and Medicaid: If you’re a Medicare or Medicaid beneficiary in a personal injury case, the insurance company may request your SSN to comply with the Medicare Secondary Payer Act. However, you can provide your Medicare Beneficiary Identifier (MBI) or authorize the insurer to access your information directly from CMS without disclosing your SSN.
Your lawyer can probably think of other ways to help the insurance company comply with its obligations without using your SSN.
What Can Happen If Your SSN Falls Into the Wrong Hands
Potential insurance company misuse is only one of the reasons why you should be careful. You don’t want the wrong people to get hold of your social security number. Here is an abbreviated list of some of the problems they can cause in your life:
- Identity theft: Criminals can use your SSN to assume your identity, opening bank accounts, credit cards, or loans in your name. They may rack up debt, destroy your credit, and leave you with the burden of proving you weren’t responsible for their actions.
- Tax fraud: Fraudsters could file false tax returns using your SSN to claim refunds they aren’t entitled to, potentially delaying your legitimate refund, triggering audits, or even resulting in penalties. This can be a lengthy process to resolve with the IRS, and you may have to prove your identity to reclaim your rightful return.
- Government benefits fraud: Your SSN could be used to fraudulently apply for government benefits, including Social Security, unemployment, or disability benefits. This can complicate matters when you need these services and may result in legal trouble if the fraud is discovered.
- Employment fraud: If someone uses your SSN to obtain employment, they could potentially cause issues with taxes or employment records. For example, your name might be linked to income or jobs that you did not authorize, which could impact your personal finances and tax filings. Additionally, if the fraudster engages in illegal activities while employed, you could be unjustly implicated.
All of the foregoing represent broad categories that can refer to many different types of fraud.
At Benton Accident and Injury Lawyers, we know how to fight back against insurance companies that try to take advantage of claimants. As experienced trial lawyers, we can do more than negotiate a settlement—we can take the opposing party to court and win. There is an irony involved here. Because the opposing party knows of our reputation in court, they are more likely to agree to a settlement that will keep you out of court.
Contact The Dallas Personal Injury Law Firm of Benton Accident & Injury Lawyers Today
If you’ve been injured in an accident in Dallas, TX, contact us for more information, please contact the experienced Dallas personal injury lawyers at Benton Accident & Injury Lawyers today. We offer free consultations.
We proudly serve in Dallas County and its surrounding areas:
Benton Accident & Injury Lawyers
1825 Market Center Blvd # 350, Dallas, TX 75207
Phone: (214) 777-7777
Hours Open: 24/7
Our firm is located near you. We have an office in Dallas.
Find us with our GeoCoordinates: 32.7950252,-96.8241861