Identity Theft Insurance: Should You Buy One?
There is already so much awareness regarding identity theft. People have been informed
repeatedly about what happens when they become careless about sharing their personal and
financial details online but they often have the notion that out of millions of people, they will
never be victimized by identity thieves. However, these criminals can attack in the most
unprecedented manner at the most unexpected times, leaving victims of identity theft taken
aback and with ruined financial reputations. The good news is, there is now, what they call, the
identity theft insurance. But before investing in this kind of insurance, it is important to
understand what it is exactly, what it does and if it is worth investing for.
Identity Theft and Its Consequences
When someone unauthorized has possession of your personal information such as date of birth,
social security number, address and financial information such as credit card numbers, the
intention would always be to steal. He will misuse your information and your money and might
even leave you in big amounts of debt which will ruin your financial record and credit report.
Always make it a habit to regularly check your freecredit report and review it thoroughly. You
should be alarmed by any unusual spending habit. Reversing or cleaning up this criminal activity
imposed on you is not an easy task but it can be done by the ID Theft Insurance Company.
Job of ID Theft Insurance Company
The main job is to help you in the cleanup processes. Moreover, they also cover the fees for:
1. The amount of money that would be spent on the restoration of your financial history and
2. The fees for the legal advisers.
3. The money spent on phone calls made to the financial institutions and other governing
4. The cost of mailing necessary paper works.
5. The fees for the cancellation of loans made by thieves.
A Critical Eye
Many people are turning a blind eye on the identity theft insurance because they say that the
amount of money to be invested is not worth it. They say that they would pay more for the
insurance company but would pay less if they do the clean up processes themselves.
Moreover, people said that these insurances do not actually protect them from getting victimized
by identity thieves. They are only there to clean up a criminal activity but the total money that
would be stolen will not be covered or replaced.
One helpful way to determine where your financial status has been ruined is to go through your
credit scores. The need to get an insurance might not always be there depending on your
situation. If you just need to clear your name in a certain bank’s name, it might be wise to clear it
up yourself rather than investing a huge amount of money to an insurance company who will do
it for you but will actually make you spend more.
Want to protect yourself from Identity thefts? Keep an eye on your credit reports with credit
monitoring services and have credit check regularly.