Do You Need Identity Theft Insurance?
Identity theft insurance is a hot commodity right now with the occurrences of identity theft so high. Even still, many people aren’t yet aware that identity theft insurance exists. To those who don’t yet have identity theft insurance, and to those who don’t know the details, I will provide you with the information you need to decide whether this is something that you might be interested in.
What is identity theft insurance?
Identity theft insurance cannot protect you from becoming a victim of identity theft. What it can do is cover the expenses you incur in bouncing back from identity theft. Most people spend up to $1,500 trying to resolve an identity theft problem, claims the Federal Trade Commission (FTC). This money can be spent in telephone calls, mailing, copies, and legal fees. Depending on the insurance, lost work time as a direct result from identity theft may also be covered. Identity theft insurance, in most cases, will not cover your losses from the theft.
How much is it?
The cost for identity theft insurance varies greatly, from a few dollars a year up to about $100/year. If you have a major credit card that offers it, it might even be free. Take care, though, that if you get the free identity theft insurance through your credit card that they cover more than just that credit card. The difference in the prices has to do with the amount of your policy and deductible. Policies range from $5,000 to $25,000 of coverage. Deductibles for identity theft insurance can range from $200 to $1,000 per year. Keep in mind that you are likely going to spend less than $1,500 on the covered expenses, so a $1,000 deductible may seem quite high.
Where can I find it?
Identity theft insurance is readily available through many credit lenders and banks. Some homeowner’s policies can include identity theft insurance as a rider. You may also be able to purchase it in a package deal along with a credit monitoring plan.
Should I buy it?
The answer to this question is not for me to give. The best insurance against identity theft is by taking steps to protect youself. If you are concerned that you will be victimized by an identity thief, then you should at the very least look into identity theft insurance. Look at several providers and find the best policy to fit your budget and lifestyle. Then only you can decide whether to purchase identity theft insurance.
