If you’re reading this article, then you’re probably aware of the growing problem of identity theft in today’s world. In fact, according to a report by Javelin Strategy & Research, over 14 million people in the US alone were victims of identity theft in 2018. And while there are steps you can take to protect yourself against identity theft, such as monitoring your credit report and being careful with your personal information, sometimes these measures aren’t enough. That’s where identity theft insurance comes in – and this guide will help you choose the right policy for your needs.
What is identity theft insurance?
Identity theft insurance is a type of insurance policy that can help you recover from the financial losses and other damages caused by identity theft. Depending on the policy, identity theft insurance may cover a range of expenses, including:
- Lost wages due to time off work to deal with the issue
- Legal and other fees associated with clearing your name
- Costs of replacing government identification, credit cards, and other documents
- Reimbursement for money stolen from your accounts
It’s important to note that while identity theft insurance can provide financial assistance and other resources, it won’t prevent identity theft from happening in the first place.
How to choose the right policy
When shopping for an identity theft insurance policy, there are several factors to consider. Here are some key things to keep in mind:
Coverage limits
One of the most important factors to consider when choosing an identity theft insurance policy is the coverage limits. This refers to the maximum amount of money that the policy will pay out for any given type of expense. For example, the policy might have a $10,000 limit for legal expenses.
When considering the coverage limits, it’s important to think about the potential costs you could incur in the event of identity theft. For example, if you have a high credit limit and several bank accounts, you may want to choose a policy with higher limits to ensure you’re fully covered.
Types of coverage
Not all identity theft insurance policies are created equal – some may offer more comprehensive coverage than others. Some policies may only cover certain types of expenses, while others could cover a wider range of costs.
Before choosing a policy, it’s important to understand exactly what expenses are covered. Some common types of coverage include:
- Reimbursement for lost wages and other expenses related to time off work
- Reimbursement for money stolen from bank accounts and credit cards
- Coverage for legal and other fees associated with clearing your name
- Coverage for costs associated with replacing lost or stolen identification and other documents
Some policies may also offer additional resources, such as access to credit monitoring services.
Cost
As with any insurance policy, the cost of identity theft insurance can vary depending on several factors. These could include the level of coverage and coverage limits, as well as your location, age, and other personal details.
Before choosing a policy, it’s important to shop around and compare prices from multiple insurers. Keep in mind that while choosing the cheapest policy might save you money in the short term, it could lead to gaps in coverage and higher costs in the event of identity theft.
Reputation and ratings
Finally, it’s important to research the reputation and ratings of the insurance companies you’re considering. Look for reviews from other customers and check ratings from independent agencies, such as A.M. Best and J.D. Power.
Choosing an insurance company with a strong reputation for customer service and financial stability can give you peace of mind and help ensure that you’re covered in the event of identity theft.
Conclusion
Identity theft is a growing problem, and it’s important to take steps to protect yourself against the financial losses and other damages that can result. By choosing the right identity theft insurance policy, you can have peace of mind knowing that you’re covered in the event of an identity theft incident. So take the time to research your options and choose a policy that meets your needs and budget – it could be one of the smartest financial decisions you make.