WHY INSURERS REQUIRE YOUR ID NUMBER
Thursday, April 9, 2015
With increasing pressure on consumer finances with increasing electricity costs and petrol prices more an more consumers are looking to switch their provider of car and home insurance, their credit card or cell phone company. The insurance industry like most that provide financial quotations require your consumer personal details. But why is it necessary to provide your identity number to insurers?
Derek Wilson, Head of the online comparison website, Hippo.co.za, says, “The credit check done by insurers does not impact your credit profile in a negative way. Insurers require your ID number to run an ITC credit check in order to calculate an accurate insurance premium for you. This is their underwriting rule, and it is common practice with all insurers.
“Conducting an ITC check provides insurers with an indication of how an individual is likely to conduct his/her account. This valuable information will also show an individual’s level of indebtedness with other credit grantors, giving the insurer sight of managing the client better,” says Wilson.
Hippo.co.za, is however not an insurance provider. Hippo.co.za, is a free comparison website that instantly compares the prices and benefits from a wide range of SA car, home, buildings and other insurance providers in order for consumers to much more easily find the best deal. As an example 8 out of 10 people could save an average of R427* per month on their car insurance by comparing and switching providers at Hippo.co.za.
“The website gives the consumer the option to select an accurate quote where the ID number is required and a credit check is run,” says Wilson, “When insurers do a credit check, it does not affect your credit rating as may be the case when you apply for credit at multiple credit or loan providers.
Established in 2007, hippo.co.za is South Africa’s leading comparison website that helps consumers save money by comparing a range of SA providers across financial products such as car insurance, home insurance, life insurance, medical and more. Hippo is free to use and saves consumers the time and hassle of shopping around for the best deal since the Hippo.co.za website instantly retrieves real-time quotes from the different providers using the latest Internet technology. At least 8 out of 10 people could save an average of R427* per month on their car insurance.
Hippo.co.za makes money by simply charging its partners a fee when a customer chooses to find out more about their products. The results consumers see, and the order in which they are presented, is in no way influenced by the fee hippo.co.za charges its partners or any other factors other than the price of the product being compared.
Hippo Comparative Services (Pty) Ltd is an authorized financial services provider (FSP number: 16357).
*Average savings based on a representative market research survey conducted by Kaufman Levin Associates, on behalf of Hippo.co.za in May 2014. Risk Profile Dependent.