Identity theft insurance is one of the ways that you can help to protect yourself if your personal information is compromised.
In this digital age, the sharing of information and knowledge over the internet and other technology is rapidly growing. Many people post information of all kinds on sites like Facebook and MySpace, while many others do their banking and bill paying online.
Protecting your identity is one of the most important things you can do to keep your information and your credit safe.
Studies and statistics show that at least 10 million people are victims of identity theft on a yearly basis. The many hours that people spend straightening out the many problems that arise from identity theft is staggering, not to mention the cost and the stress inherent in this particular type of victimization.
Credit can be damaged and debts can be incurred in your name, and your personal confidential information is compromised. Even if you take all the necessary precautions to protect yourself, you may still become the victim of a sophisticated hacker.
This is where insurance for identity theft comes in to the picture. The purpose of identity theft insurance is to cover the costs and expenditures that arise from clearing your name and your credit.
Some policies will cover basic fees, such as phone calls, photocopying documents, and other smaller charges. Some policies have deductibles that you’ll have to pay out-of-pocket before they will reimburse you.
Other policies are more comprehensive and will cover all the fees associated with identity theft, including legal costs and long distance phone calls.
Some companies, such as American Express, offer identity theft coverage as a free service to all cardholders.
The Zander Insurance Group is an example that offers an identity theft protection program for a small fee that is quite comprehensive. Although it is not considered to be an insurance product, they offer fully managed recovery and reimbursement of fees up to $20,000 with no deductible.
If you become a victim, having identity theft insurance will help you through the stressful process of trying to clear your name, information, and credit.
The monthly expense is well worth the peace of mind and the protection that it will offer you, as well as helping you to recoup some of the expenses that you will likely incur as a part of the recovery process. Remember, a good name is worth more than any amount of money!
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