Identity theft got you going crazy?

Relax, where there's a will, there's a way. As a result of the ever increasing rate of identity theft a number of financial institutions are now offering Identity theft insurance to help us ease our fears. But before you go and buy insurance here are a few things you should know. Identity theft insurance and other services are sometimes included in Homeowner and stand-alone policies at no real additional cost. These policies usually cover costs such as legal fees and telephone bills. So check your homeowner policy first. In some instances you can even get identity theft insurance through your credit card. Have a chat with the financial institution that issues your card and see what options they have available. MasterCard on the other hand provides identity theft insurance to member banks as an optional benefit.

Most ID theft policies involve monthly or annual fees, along with different payment options. The services provided usually include access to your credit report and updates on any changes made to your report. An identity expert may be allocated to you should you find yourself a victim of identity theft or find evidence thereof. But let’s not forget that identity theft insurance does not cover direct monetary losses.

When looking for the right ID insurance there are a few things you should consider;

• Find out what all the policy limits are with regards to legal fees, lost wages etc.

• Find out if there is a deductible. Some policies require you to pay the first $100 - $500 of costs incurred for reclaiming your financial identity.

In general Identity theft insurance should cost you between £3.75 and £6.99 a month or between £45 and £84 a year. And usually covers up to $10,000 or $15,000 of your loss.

The following are the most popular financial institutions to offer Identity Theft Insurance;

• BT Identity Protection offers insurance for £3.75 per month by direct debit, for identity restoration.
• Sainsbury’s Bank offers Privacy Guard for £6.99 a month.
• Card Protection Plan offers a Complete Protection policy for £4.99 a month or £59.99 a year.
• Travelers offers different forms identity theft insurance starting from $49 per year.
• HBOS (Halifax Bank of Scotland) offers Identity care insurance for £6.95 a month.

Each institution offers different services, so it would be wise for you do some research and see which policy would best suites you. Assuming that Identity Insurance will protect your social security numbers would be a big mistake though. Still the best way to safeguard your identity is to keep a watchful eye over your personal details and leave the ID theft insurance to be just that, insurance.

References:

Identity Insurance Guide

Identity Theft Insurance Policy

Identity Theft Insurance