A Quick Guide on the NAIC Number

Sometimes, there’s no avoiding car accidents on the road. If that happens, you’ll have to file an insurance claim to cover the cost of damages, injuries, and repairs. You must acquire and provide critical information like your insurance policy number, file number, and the NAIC number.

But what is the NAIC number, exactly? What is its purpose in insurance claims? And how can you find it?

What’s the NAIC Number?

The NAIC number is a unique identification code assigned to an insurer. It bears relevant information about the insurance company, such as the state of the insurer’s finances and any complaints filed against it. The NAIC number helps streamline claims and grants credentials to the insurance company.

Every authorized insurance company in the US has a NAIC number. The insurer receives its identification code upon joining the commission.

Large insurance companies might have more than one NAIC number. Each affiliate organization will have unique numbers assigned to them to distinguish them from their parent companies.

Other factors can affect NAIC numbers. For instance, different types of insurance policies will have different arrangements of number identifiers in their corresponding NAIC number. Another example is how an insurance company might have one NAIC number in one US state and a different number in another state.

When an insurance company issues an insurance policy to their client, it also provides the policy’s NAIC number.

Currently, NAIC numbers have five character identifiers. The NAIC can increase the character limit to a total of six identifiers to accommodate a large influx of new insurance companies in the future.

NAIC stands for National Association of Insurance Commissioners. Founded in 1871, the commission sets standards and regulations for the insurance industry in the US. Its chief insurance regulators come from all US states.

The NAIC roster of members includes all the big American insurers and almost all the minor insurance companies.

What’s the NAIC Number Used For?

The NAIC number is a critical piece of information for anything related to car insurance. The following are the most common uses for the identification number:

Insurer and Insurance Policy Identification

First and foremost, the NAIC number shows who your insurer is. It also identifies what insurance policy you have.

Insurance Claim Processing

The NAIC number helps enable the fast processing of an insurance claim. You’re usually required to provide your insurer’s NAIC number when you fill out a claim or file a report with the Department of Motor Vehicles (DMV).

Legal authorities can enter the NAIC number into the insurance claim process files. The police, the DMV, and the insurer of the other party can use the identification number to pull up information about the insurance company handling the claim on behalf of the client.

Compared to earlier methods that required going through every source and double-checking manually, the NAIC number allows legal authorities to find the information they need quickly.

DMV Registration

You’re also going to need the NAIC number for paperwork at the DMV. When you register your vehicle, you must enter the NAIC number in the document.

The DMV tracks the information of the insurance company through the NAIC number. For example, the local DMV office can find out the insurer’s address and send a message there.

Checking Practices and Conduct

Are you worried about how your insurance company behaves and how the public views it? You can use their NAIC number to track down their official profile and find out if they’re facing criminal cases or having problems with their finances. If you file an official complaint against your insurer, you’ll also need the NAIC number.

Insurance Number vs. NAIC Number

At first glance, you might mix up the NAIC number with the insurance number. However, the two identification numbers aren’t the same thing.

For one thing, the NAIC number is issued at the insurance company level. In comparison, the insurance number is given at the individual level.

Furthermore, the NAIC number identifies the insurer. Meanwhile, the insurance number identifies the policyholder.

How To Find the NAIC Number

While the NAIC number is vital for insurance claims, you don’t usually use it. Therefore, it’s likely that you haven’t memorized it. Fortunately, it’s fairly easy to find the NAIC number.

Start by checking your insurance policy card. Formally called the proof of vehicle insurance card, it should have the NAIC number. Look for the insurance policy number. Depending on the state and insurance company, the 5-digit NAIC number code is located before or after the policy number.

If you don’t see any number labeled NAIC number, look for the insurance company number beside the insurer’s name. Count how many digits it has. If the company number has five digits, it’s the NAIC number.

The NAIC number might be located on the insurance card’s reverse side. Look for the guidelines that cover what you should do during an accident. You might find the 5-digit identification code there.

You can also check the insurance policy documentation for the NAIC number or Company Number. The policy contains the identification number, a convenience when you file your insurance claim and have to provide the identification code. Furthermore, the NAIC number on the insurance policy will match the one on the insurance card.

Sometimes, you might not find the NAIC number on the insurance card or the insurance policy documentation. You might not even have either document available. In such an extreme scenario, visit the NAIC website. Use the website’s consumer insurance search tool to find the company number of your insurance company.