Auto Insurance / Credit History / Trailing Spouse question
#1
Forum Regular
Thread Starter
Joined: Sep 2007
Posts: 140
Auto Insurance / Credit History / Trailing Spouse question
Sorry for yet ANOTHER credit related / insurance question. I've used search and have not found the answer.
I've read all the credit guides on the forum - thanks for those; really useful, particularly FatBrit's.
I will be arriving as a trailing spouse on an O-3 visa (so similar to H-4 in that it is a non-working visa).
As I understand it, no SSN = no credit history - ever. As an O-3 I won't have an SSN (or an ITIN either, because I won't be filing taxes).
I presume this means that the only credit available to me will be as a named card holder against my wife's credit history. We already have a US bank account and credit card set up.
I don't particularly see a problem with this scenario. I won't have a US income in my own name, so why should the CC companies want to deal with me?
But auto insurance quotes are quite heavily affected by credit scoring, so presumably I could never get a really good quote in my own name - correct?
From the (very) limited quotes we have received so far, the concept of primary driver of a vehicle doesn't seem to have cropped up. Does this exist? I suspect auto insurance is very different in the US compared to the UK.
So, the real question is :
Can we just have 2 cars on one policy (in my wife's name) and skip away with the 2 car and (eventually) credit discounts even though I would be the primary driver on the second car? What do other people do?
I am not looking to be dishonest in any way - it just isn't worth it with insurance companies in particular.
Thanks for the answers and please feel free to demolish my reasoning.
I've read all the credit guides on the forum - thanks for those; really useful, particularly FatBrit's.
I will be arriving as a trailing spouse on an O-3 visa (so similar to H-4 in that it is a non-working visa).
As I understand it, no SSN = no credit history - ever. As an O-3 I won't have an SSN (or an ITIN either, because I won't be filing taxes).
I presume this means that the only credit available to me will be as a named card holder against my wife's credit history. We already have a US bank account and credit card set up.
I don't particularly see a problem with this scenario. I won't have a US income in my own name, so why should the CC companies want to deal with me?
But auto insurance quotes are quite heavily affected by credit scoring, so presumably I could never get a really good quote in my own name - correct?
From the (very) limited quotes we have received so far, the concept of primary driver of a vehicle doesn't seem to have cropped up. Does this exist? I suspect auto insurance is very different in the US compared to the UK.
So, the real question is :
Can we just have 2 cars on one policy (in my wife's name) and skip away with the 2 car and (eventually) credit discounts even though I would be the primary driver on the second car? What do other people do?
I am not looking to be dishonest in any way - it just isn't worth it with insurance companies in particular.
Thanks for the answers and please feel free to demolish my reasoning.
#2
Re: Auto Insurance / Credit History / Trailing Spouse question
From the (very) limited quotes we have received so far, the concept of primary driver of a vehicle doesn't seem to have cropped up. Does this exist? I suspect auto insurance is very different in the US compared to the UK.
So, the real question is :
Can we just have 2 cars on one policy (in my wife's name) and skip away with the 2 car and (eventually) credit discounts even though I would be the primary driver on the second car? What do other people do?
Can we just have 2 cars on one policy (in my wife's name) and skip away with the 2 car and (eventually) credit discounts even though I would be the primary driver on the second car? What do other people do?
I am not looking to be dishonest in any way - it just isn't worth it with insurance companies in particular.
Thanks for the answers and please feel free to demolish my reasoning.
Thanks for the answers and please feel free to demolish my reasoning.
#3
Re: Auto Insurance / Credit History / Trailing Spouse question
You will require an ITIN as your wife will need to list you on her tax return and can only do so if you have said number. The ITIN can be used in place of a SSN in some cases for credit cards and banking.
#4
Mr. Grumpy
Joined: Jun 2003
Location: Nashville, TN
Posts: 3,100
Re: Auto Insurance / Credit History / Trailing Spouse question
credit score can have some effect on insurance premiums, this is a fact. BUT many insurance companies do not include it as part of their underwriting guidelines
geico does for example (according to the rep I spoke to ages ago), but farm bureau who I use does not for example
just find a company that does not pull your credit. Them asking for a SSN is a dead giveaway
geico does for example (according to the rep I spoke to ages ago), but farm bureau who I use does not for example
just find a company that does not pull your credit. Them asking for a SSN is a dead giveaway
#5
BE Enthusiast
Joined: Feb 2006
Location: Maryland
Posts: 667
Re: Auto Insurance / Credit History / Trailing Spouse question
http://www.consumerreports.org/cro/m...urance%20score
#6
Re: Auto Insurance / Credit History / Trailing Spouse question
#7
Forum Regular
Thread Starter
Joined: Sep 2007
Posts: 140
Re: Auto Insurance / Credit History / Trailing Spouse question
Thanks for the replies Rete.
I was basing this on Fatbrit's Guide:
Thanks. That makes sense.
Again that makes sense, except that I think I need to get the ITIN issued afterwards, if this is correct.
Originally Posted by Fatbrit
Credit, credit, my kingdom for a credit score
Okay, look at it this way: your status back in Blighty was directly linked to your accent, schooling, whether the Fotherington-Smythes invited you to their little soiree, or even whether HM has graciously dished out the gongs in your favour. Unfortunately but deservedly, the foremost measure of your social status in America is your credit score. Moreover, this number will affect not only the rate at which you borrow money (would you rather pay 0% for a new car or 21%? 5% on your mortgage or 10%? 5% on your credit card or 30%?) but also your insurance costs ($2000 or $1000 p.a.?) and, possibly, your job (yes, your employer might also ask to see it!).
To have a credit score, you must possess a kosher social security number. There's no way round this.
Okay, look at it this way: your status back in Blighty was directly linked to your accent, schooling, whether the Fotherington-Smythes invited you to their little soiree, or even whether HM has graciously dished out the gongs in your favour. Unfortunately but deservedly, the foremost measure of your social status in America is your credit score. Moreover, this number will affect not only the rate at which you borrow money (would you rather pay 0% for a new car or 21%? 5% on your mortgage or 10%? 5% on your credit card or 30%?) but also your insurance costs ($2000 or $1000 p.a.?) and, possibly, your job (yes, your employer might also ask to see it!).
To have a credit score, you must possess a kosher social security number. There's no way round this.
You may only file W-7 for an ITIN *with* a tax return now.
"Foreign persons who are individuals should apply for a social security number (SSN, if permitted) on Form SS-5 with the Social Security Administration, or should apply for an Individual Taxpayer Identification Number (ITIN) on Form W-7. Effective immediately, each ITIN applicant must now:
Apply using the revised Form W-7, Application for IRS Individual Taxpayer Identification Number; and
Attach a federal income tax return to the Form W-7."
"Foreign persons who are individuals should apply for a social security number (SSN, if permitted) on Form SS-5 with the Social Security Administration, or should apply for an Individual Taxpayer Identification Number (ITIN) on Form W-7. Effective immediately, each ITIN applicant must now:
Apply using the revised Form W-7, Application for IRS Individual Taxpayer Identification Number; and
Attach a federal income tax return to the Form W-7."
#8
Re: Auto Insurance / Credit History / Trailing Spouse question
From the (very) limited quotes we have received so far, the concept of primary driver of a vehicle doesn't seem to have cropped up. Does this exist? I suspect auto insurance is very different in the US compared to the UK.
So, the real question is :
Can we just have 2 cars on one policy (in my wife's name) and skip away with the 2 car and (eventually) credit discounts even though I would be the primary driver on the second car? What do other people do?
So, the real question is :
Can we just have 2 cars on one policy (in my wife's name) and skip away with the 2 car and (eventually) credit discounts even though I would be the primary driver on the second car? What do other people do?
On the "how to do it" front, I'd have both the cars in both your names and both the cars insured through the same company. The insurance companies will insist that everyone who lives at the address is listed on the policy anyway.
Don't be surprised to find customer service people who get stuck and refuse when you don't have a SSN. You will learn the gentle art of pushing your issue higher up the ranks until you find someone with a brain large enough to understand this strange concept.
#10
Re: Auto Insurance / Credit History / Trailing Spouse question
credit score can have some effect on insurance premiums, this is a fact. BUT many insurance companies do not include it as part of their underwriting guidelines
geico does for example (according to the rep I spoke to ages ago), but farm bureau who I use does not for example
just find a company that does not pull your credit. Them asking for a SSN is a dead giveaway
geico does for example (according to the rep I spoke to ages ago), but farm bureau who I use does not for example
just find a company that does not pull your credit. Them asking for a SSN is a dead giveaway
Strange I have had a GEICO policy since my first husband was employed in the government back in 1972. Have had the present policy with them now since 1976. Like I said until the last ten years, my credit rating was minus 0 as a single parent raising two girl without child support.
#12
Re: Auto Insurance / Credit History / Trailing Spouse question
After what? I suggest you apply for an ITIN as soon as you arrive. Despite what you may have heard, it can be used in ~75% of cases where you would otherwise need an SSN. My wife (who spent 3 years in H4 purgatory) used her ITIN to open an bank account with me, register for my company's health insurance plan (they insisted on an SSN or no coverage), register with Dentist and Doctor (it's easier than explaining to them that they're not allowed to demand an SSN to register you) and to be listed as joint account holder on our credit cards. It's a trivial thing to apply for, and you'll need it before you know it for its real purpose of filing taxes in the Spring anyway.
#13
Re: Auto Insurance / Credit History / Trailing Spouse question
After what? I suggest you apply for an ITIN as soon as you arrive. Despite what you may have heard, it can be used in ~75% of cases where you would otherwise need an SSN. My wife (who spent 3 years in H4 purgatory) used her ITIN to open an bank account with me, register for my company's health insurance plan (they insisted on an SSN or no coverage), register with Dentist and Doctor (it's easier than explaining to them that they're not allowed to demand an SSN to register you) and to be listed as joint account holder on our credit cards. It's a trivial thing to apply for, and you'll need it before you know it for its real purpose of filing taxes in the Spring anyway.
#14
Forum Regular
Thread Starter
Joined: Sep 2007
Posts: 140
Re: Auto Insurance / Credit History / Trailing Spouse question
US car insurance is indeed very different compared to the UK. And premiums vary widely. The answer is to shop around a lot -- pain though that may be.
On the "how to do it" front, I'd have both the cars in both your names and both the cars insured through the same company. The insurance companies will insist that everyone who lives at the address is listed on the policy anyway.
Don't be surprised to find customer service people who get stuck and refuse when you don't have a SSN. You will learn the gentle art of pushing your issue higher up the ranks until you find someone with a brain large enough to understand this strange concept.
On the "how to do it" front, I'd have both the cars in both your names and both the cars insured through the same company. The insurance companies will insist that everyone who lives at the address is listed on the policy anyway.
Don't be surprised to find customer service people who get stuck and refuse when you don't have a SSN. You will learn the gentle art of pushing your issue higher up the ranks until you find someone with a brain large enough to understand this strange concept.
Thanks for the guide.
When you say "both cars in both your names" is that both Titling and Registration.
I'm thinking Registration is the important one, since the Title is, in many cases held by a finance company.
You may only file W-7 for an ITIN *with* a tax return now.
"Foreign persons who are individuals should apply for a social security number (SSN, if permitted) on Form SS-5 with the Social Security Administration, or should apply for an Individual Taxpayer Identification Number (ITIN) on Form W-7. Effective immediately, each ITIN applicant must now:
Apply using the revised Form W-7, Application for IRS Individual Taxpayer Identification Number; and
Attach a federal income tax return to the Form W-7."
"Foreign persons who are individuals should apply for a social security number (SSN, if permitted) on Form SS-5 with the Social Security Administration, or should apply for an Individual Taxpayer Identification Number (ITIN) on Form W-7. Effective immediately, each ITIN applicant must now:
Apply using the revised Form W-7, Application for IRS Individual Taxpayer Identification Number; and
Attach a federal income tax return to the Form W-7."
I don't qualify under any exceptions, so the W-7 can only be submitted with a tax return.
#15
Re: Auto Insurance / Credit History / Trailing Spouse question
Also, consider whether you want to finance both of them since this will force you to take full insurance instead of just liability. Respectable runarounds can be found at very good prices through private sales.