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Is Identity Theft Insurance Worth It?

April 19, 2011
Credit Cards
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This is a guest post from Jacqui with Ask Mr. Credit Card. She’s busy looking out for consumers and writing some of the best credit cards reviews on the ‘net.

That seems to be the Million Dollar question these days. While there are no concrete statistics of how many people are affected by Identity Theft, it is a major issue. With the advancement of technology, it can only be assumed it is on the rise. At least hundreds of thousands of people are affected by this concern.

What does this Insurance cover? This is the question you want to ask when trying to decide if this is coverage you want to get. Each carrier offers different policies and the specifics will vary. Generally, identity theft insurance policies should cover any costs you put out while trying to not only restore your identity and in repairing your credit history. Some policies may even cover legal fees if you are not able to resolve it on your own. There may be a deductible that can range from $100 to $250 and possibly higher. Before you pay for the insurance, make sure the deductible is less than you would have to spend to resolve things on your own.

While there may be hundreds of thousands of people that are affected by this, there are millions of people that are not affected. Taking precautions, such as shredding mailings and other important documents that you are throwing away, can help in lowering your risk of being in the first group.

So, is it worth getting identity theft insurance? Personally, I am not convinced it is. However, I’m sure if I was affected by this rising issue, there is a possibility I would feel different. If you choose to get Identity theft insurance, research all avenues. Ask the company you have your car or home insurance with. Even check with your credit card companies since they sometimes offer policies at a discount; as do the three credit bureaus.