Identity theft is one of the fastest growing crimes in the world. As technology advances, it’s becoming easier for criminals to access your personal information and use it to their own financial gain. And while there are steps you can take to protect yourself from identity theft, many people also opt to purchase identity theft insurance as an extra precaution.
But how much does identity theft insurance cost? In this blog post, we’ll explore the cost of identity theft insurance, discuss what types of coverage are available, and explain why it’s important to have this type of protection in place. Read on for more information about the costs associated with identity theft insurance.
What is Identity Theft Insurance?
Identity theft insurance is a type of coverage that can help you financially if your identity is stolen. It can reimburse you for certain expenses, like lost wages and legal fees, that result from identity theft. Some policies also provide coverage for things like credit monitoring and identity restoration services.
How Much Does Identity Theft Insurance Cost?
According to the National Association of Insurance Commissioners (NAIC), the average cost of identity theft insurance was $25 per year in 2018. However, prices can vary depending on the features and coverage included in the policy. For example, some policies may cover lost wages and legal fees incurred as a result of identity theft, while others may only provide reimbursement for financial losses.
Some insurers offer identity theft insurance as part of a homeowners or renters insurance policy. Others sell it as a standalone product. Some credit card companies also offer it as a benefit to cardholders.
When considering an identity theft insurance policy, be sure to read the fine print carefully. Some policies have strict limits on the types of expenses that are covered, and many exclude coverage for certain types of identity theft, such as tax-related fraud. You’ll also want to make sure you’re comfortable with the insurer’s process for filing and resolving claims.
How Does Identity Theft Insurance Work?
When it comes to identity theft insurance, there are a few different ways that it can work. The most common is for the insurance company to reimburse you for any financial losses that you incur as a result of identity theft. This can include things like unauthorized charges on your credit card, fraudulent withdrawals from your bank account, and even legal fees if you have to go to court to clear your name.
Another way that some identity theft insurance policies work is by providing you with access to services that can help you recover from identity theft. This can include things like credit monitoring, restoration assistance, and even ID theft protection services. These services can help you keep an eye on your credit report for any suspicious activity, restore any damage that has been done to your credit score, and protect your information from being stolen in the future.
No matter how your policy works, identity theft insurance can give you peace of mind knowing that you have some financial protection in place in case your personal information is stolen. It’s important to compare policies and coverage levels to find the right fit for your needs, but identity theft insurance is definitely worth considering if you want an extra layer of protection against this growing problem.
What Are the Benefits of Identity Theft Insurance?
There are a few benefits to having identity theft insurance. The most obvious benefit is that it can help you recover financially if you become a victim of identity theft. Identity theft insurance can reimburse you for things like lost wages, legal fees, and other financial losses that result from identity theft.
Another benefit of identity theft insurance is that it can help you prevent identity theft in the first place. Many policies include features like monitoring services and fraud consultation services that can help you keep an eye on your personal information and spot potential threats.
Finally, having identity theft insurance can give you peace of mind knowing that you have some protection against this growing crime. Though no policy can completely protect you from identity theft, it can provide some financial assistance if the worst does happen.
Is Identity Theft Insurance Worth It?
There are a lot of different types of insurance out there, and it can be hard to know which ones are worth the money and which ones aren’t. When it comes to identity theft insurance, there are a few things you should consider before making a decision.
First, what does identity theft insurance actually cover? Most policies will reimburse you for any financial losses you incur as a result of identity theft, including things like unauthorized charges on your credit card or bank account. They may also cover the cost of restoring your credit report if it’s been damaged by identity theft.
Second, how much does identity theft insurance cost? premiums can vary depending on the level of coverage you want and the insurer you choose, but they typically range from $25 to $100 per year.
Third, is identity theft insurance worth the cost? That’s a harder question to answer since it depends on a lot of factors, including how likely you are to become a victim of identity theft and how much financial damage you could incur if it did happen. If you think you might be at risk for identity theft (for example, if you have a lot of debt or keep sensitive information like your Social Security number on your computer), then buying some kind of insurance policy could give you peace of mind. On the other hand, if you’re not particularly worried about becoming a victim, then you might decide that the cost isn’t worth it.
How to Get Identity Theft Insurance
There are a few things to keep in mind when shopping for identity theft insurance. First, consider the limit of the policy. This is the maximum amount that the insurer will pay out if you are a victim of identity theft. Second, look at the coverage. Does the policy cover lost wages, legal fees, and other expenses associated with identity theft? Third, check the deductible. This is the amount you will have to pay out-of-pocket before the insurance company starts paying. Fourth, make sure to read the fine print. Some policies have exclusions or limitations that you should be aware of before buying.
Now that you know what to look for, here are a few companies that offer identity theft insurance:
1. Allstate Identity Protection
2. LifeLock Ultimate Plus
3. Identity Guard Total Protection
4. TrustedID Premier
Compare prices and coverage to find the best fit for you. Keep in mind that you may already have some coverage through your homeowners or renters insurance policy, so check with your agent to see if you need additional coverage.
Conclusion
Identity theft insurance is a great way to protect yourself and your finances, but it can be confusing trying to figure out how much you need. We hope that this article has helped clear up some of the confusion by providing an overview of the different types of identity theft insurance available, their benefits, and how much each one typically costs.
Remember that no matter which type you choose, having identity theft insurance is always better than not having any at all – so make sure to do your research and find the right plan for you!
