ID Theft Insurance: What To Expect

Author: Andy Mitchel | Filed under: Identity Theft Protection | Tags: ID Theft Insurance | No Comments »

Identity theft prevention is being pursued by many who are looking to avoid or at the very least minimize the losses if victimized. One such way is to obtain credit card protection, but this won’t protect from all types of identity theft. The other option is ID theft insurance, which is designed specifically for those who want coverage in case they are victims of identity theft.

What is ID Theft Insurance?

The concept of ID theft insurance is no different than insurance for anything else, it’s to provide reimbursement for the incurred losses that result from identity theft. Because more and more identities are being stolen, obtaining ID theft insurance is being seriously considered now more than ever. Insurance companies that offer this may offer several different policies depending on what best suits you.

The policies available will vary in terms of the types of theft and the amount of money that will be covered. For instance, one policy may provide protection for credit cards, debit cards, ATM cards and up to $30,000 for the family. So it’s possible that you could still lose money if you are a victim despite having ID theft insurance.

Credit card companies sometimes offer ID theft insurance as well. You might find that the protection plans through your credit card company may be less than what insurance companies offer. Discover card offers a plan that will insure victims up to $25,000. Contact your creditor to see if they offer such a service if you aren’t sure.

Terms And Conditions

Learn the terms and conditions of any ID theft insurance policy that you are considering before making any decisions. As you research what companies offer, you will find that the terms will vary based on the policy. Some for instance may pay for cost for notarizing fraud affidavit, long distance telephone calls that deal with the fraud, and other fees associated with the recovery process. Others may not provide this much coverage. Compare and decide what is best for your situation.

Legal costs will generally be covered in most insurance policies when you hire an attorney. A portion of lost wages due to missing time from work may be provided over a short period of time. Fees that incurred from loan re-application because of inaccurate credit information could be included in the policy, as well as mailing costs.

Prevention is the best way to combat identity theft. If peace of mind is important to you, then ID theft insurance may be a good option for you. The key point is to know exactly what you are getting with a policy.