Understanding Auto Insurance Company Codes

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Every state has its own regulations when it comes to financial responsibility. Most have rules that allow drivers to purchase automobile insurance liability policies to satisfy their financial responsibility requirements. In order to prove one has purchased auto insurance, one has to carry an automobile insurance identification card issued by the insurance carrier.

Every automobile insurance card issued in the United States has what is known as a auto insurance company code on it. Even though the identification card lists the name and address of your insurance carrier, the code is used by state officials to identify the insurance company who issued the card.

Why would they need a code if the name is listed? Many insurance companies have parent companies and child companies. This means you might purchase an automobile insurance policy from a company that writes coverage under several smaller companies. The code will let DMV of state officials know exactly what company underwrites your policy, as well as what company is considered the parent.

What do Auto Insurance Company Codes Mean to Me?

Having the auto insurance company code doesn't necessarily mean much to you as a consumer. In most states you won't need to write the code on any insurance or motor vehicle documents.

You should, however, make yourself aware of the existence of auto insurance company codes in every state in which you live or do business. Make sure all of your identification cards prominently feature a code. If you are pulled over and present a card that does not show a code you may be accused of carrying a fake identification card.

Deciphering Company Codes

There are several websites online where you can check the company code against the one listed on your automobile insurance identification card. For most, however, it is easiest to visit either your own state motor vehicle agency or the state department of banking and insurance.

You can use the auto insurance company code not only to determine the name of the real company you are dealing with but to find information about that company's client relationships as well. By using the company code you'll ensure you're getting the most accurate information possible – about customer service, claims settlement, and anything else you deem important when choosing an insurance carrier.

Always ask your agent or the company offering your free insurance quotes to disclose the auto insurance company code corresponding to the quote you were given. You can use that information to do your own research to determine if you're really being given the best options available.

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