If you have encountered identity theft personally, or know someone who has, then you likely know that the process to redeem all of your information as the victim is slow, expensive, and frustrating. This is why identity theft insurance exists. This type of insurance will cover these costs through reimbursements on the costs of getting one’s financial identity reclaimed, as well as the money needed to repair credit that is often harmed by identity theft. Depending on the plan, it can even be used to help victims with the costs of seeking legal measures.
There are a few options to buy identity theft insurance. Many people do not realize they have it but already are covered for identity theft through their homeowners and renters insurance policies. If you do not have it included already, you can get it added typically for an additional $25 to $50 a year. You can also purchase it as a standalone insurance plan separate from homeowner’s or renter’s insurance
If you are considering purchasing identity theft insurance, you should be aware of the specifics that each individual policy would offer, what the limits are, and if there is a deductible. 25 to 50 dollars a year is certainly worth the cost should you ever run into identity theft, as most coverages can help you significantly. It is also worth mentioning that identity theft has a higher chance to have long-term consequences that will cost you even more money down the road, particularly if your credit score is lowered by it. Identity theft insurance can help answer these concerns, which is a tremendous positive. It really only is worth it, however, if you know you are protected from the most likely kinds of identity theft in full. This is why it is so important to do adequate research into the extent to which each policy will protect you and your family from fraud.