Why would an insurance company need a person’s social security number if its insured hit that person?

UPDATED: Oct 13, 2014

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Why would an insurance company need a person’s social security number if its insured hit that person?

My 16 year old and I were involved in an auto accident. We both had minor injuries. The other driver admitted fault and now his insurance company tells me that they need my child’s social security number in order to settle. The insurance company never asked for mine. What should I do?

Asked on October 13, 2014 under Accident Law, Indiana


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Do you mean for settlement of a bodily injury claim that you are making?  Because the insurance company has to send the information about pay outs to the IRS.  In most states a bodily injury settlement is tax free to the recipient but the payor has reporting requirements.  I would talk to an attorney.  Good luck.

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