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Identity theft insurance is a low-cost insurance policy designed to cover the out-of-pocket costs to the victim of identity theft.
Although consumers aren't held accountable for any spending on the part of a thief; phone calls, time out of work, hiring legal representation and fees to repair credit reports can all add up and are all covered by identity theft insurance. The average cost of all these things is approximately $535.
Insurance premiums are usually between $25 and $50 annually and provide protection in the amount of $15,000 to $20,000.
Although ID theft is still a major expense to US businesses, it is on the decrease as consumers and companies get smarter. 8.4 million people were affected last year, which was a half a million fewer people than the year before and almost a full million from 2004.
There are a couple of things to know before paying for identity theft insurance. First, does your homeowner's insurance already cover this type of loss? And second, is the deductible more than you would be likely to pay out of pocket if someone did steal your identity?
Not everyone is convinced of the necessity of ID theft insurance, believing that diligence on the part of consumers is all that is really needed to prevent identity theft. Of course, some people aren't interested in taking the time and effort required.
"The insurance isn't a large amount of money," stated Joe Lester of Traveler's Insurance Co.," Insurance is all about piece of mind." |
