With more than 1.1 million cases of identity theft reported in 2022 by the Federal Trade Commission in the US, it is important that you consider purchasing identity theft insurance coverage. The high number of reported cases suggests an increase in online hackers who can manipulate data to access your personal information, accounts, and credit cards. When this occurs, it can result in significant challenges in restoring your identity, leading to various expenses such as legal fees, lost wages, credit monitoring costs, and more.
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But by understanding what identity theft insurance covers, you can better safeguard yourself against the potential financial and emotional impact of this increasingly common crime. In this article, we’ll explore what identity theft protection covers, the different types of policies available, and the companies that offer them.
What is identity theft insurance?
Identity theft insurance is a policy designed to cover or reimburse you for the expenses incurred in the process of restoring your identity. Identity theft occurs when someone uses your personal information, such as bank account or credit card details, to make purchases, conduct transactions, or engage in activities as if they were you.
What are the different identity theft insurance policies?
Identity theft insurance policies typically vary by provider, with each offering its own policies and coverage benefits. Certain costs and expenses may be covered by one policy but not another. Here are some common identity theft insurance policy covers:
1. Cost Reimbursement
Most policies will help you recover expenses incurred while trying to restore your identity. These costs could include:-
- Legal fees: Fees for hiring an attorney to assist during civil suits or court hearings.
- Lost wages: Compensation for time off work taken to deal with the theft.
- Bank fees: Fees incurred when applying for a credit card.
- Child care costs
- Notary fees.
2. Credit Monitoring Services
Depending on your provider, you may receive credit monitoring services, where your credit reports from different bureaus and databases are closely monitored to detect any suspicious activity early.
3. Identity Recovery
You may receive guidance and support from specialists who help resolve fraudulent accounts, replace documents like licenses and passports, and overall restore your identity.
4. Cyber Monitoring
Your social media accounts and other online presences are monitored, and you will be alerted to any suspicious activities. The policy may also include guidance on setting stronger security measures and passwords to protect your identity.
Is identity theft protection worth it?
Just like any other insurance policy, identity theft protection is a valuable purchase. If your identity gets stolen, you could face numerous expenses and lose significant work time while restoring your identity. This can lead to lost wages and additional costs. However, with identity theft insurance, you are protected from these expenses and may even receive other benefits included in the package.
Alternatively, you can take personal measures to protect your data, such as monitoring your credit card activities and using strong passwords for your accounts. If you decide you need this type of insurance, research different providers, understand their coverage options, and choose a package that fits your budget, whether it’s monthly, quarterly, or yearly, depending on the provider and policy types.
When might identity theft insurance be worth it?
Identity theft insurance might be worth it if:
- You are a high-profile individual or have substantial financial resources, you should consider getting this type of insurance for added protection, as you may be at a higher risk of identity theft.
- You frequently engage in activities that expose your personal information, such as online businesses, shopping or social media usage.
- You’ve been a victim of identity theft before, you might want additional protection to avoid the hassle and costs associated with restoring your identity again.
Finally, the decision to buy identity theft insurance depends on your personal risk factors, preferences, and financial situation. If you decide it’s worthwhile, here are some top companies in the USA that provide identity theft protection.
1. Aura.
| Plans | Costs | Benefit |
| Individual plan (1 adult) | Annually, $9 per month. Monthly, $12 | $1 Million Identity Theft Insurance |
| Couple plan (2 adults) | Annually $17 per month, Monthly, $20 | Up to $2 Million Insurance ($1M insurance per adult) |
| Family plan (5 Adults, Unlimited Kids) | Annually $25 per month . Monthly ,$30 | Up to $5 Million Insurance ($1M insurance per adult) |
This company offers identity theft protection services with plans for individuals, couples, or families, available at monthly or annual rates. Their plans include a range of coverage options and benefits such as:-
- Online & Device Security
- Identity Theft Protection
- Financial Fraud Protection
- White Glove Fraud Resolution
- 24/7 U.S.-based Customer Support
2. Identity Guard.
| Plans | Individual package (costs) | Family Package (Costs) | Benefits |
| Value | Monthly, $7.20 Annually, $6.67 per month | Monthly, $11.99 Annually, $10.00 per month | $1 Million Identity Theft Insurance |
| Total Plan | Monthly, $13.33 Annually, $15.99 per month | Monthly, $23.99 Annually, $19.99 per month | $1 Million Identity Theft Insurance |
| Uiltra | Monthly, $14.99 Annually, $12.99 per month | Monthly, $31.99 Annually, $24.00 per month | $1 Million Identity Theft Insurance |
Another identity theft protection service provider, Identity Guard, offers three different plan types. Their coverage includes protection for individuals, families, and children, with benefits such as:-
- Online & Device Security
- Identity Protection for each plan (Basic, Standard, and Premium)
- Credit Card Protection for the Total and Ultra plans
3. Lifelock
| Plans | Costs | Coverage Benefit |
| Standard individual Plan | Annually, $7.50 per month Monthly, $11.99 | $1,050,000 |
| Ultimate Plus, individual | Annually $19.99 per month, Monthly, $34.99 | $3,000,000 |
| Ultimate Plus 2 adults | Annually $32.99 per month Monthly, $69.99 | $3,000,000 per adult |
As another company that offers identity theft insurance protection, by covering the key aspects of identity theft protection. It also provides variety of comprehensive plans to choose from, with benefits such as:
- Social Security number monitoring.
- Credit monitoring
- Social media monitoring
- Coverage benefits up to $3,000,000 for the Ultimate Plus plan
4. Force.
In the US, Identity Force offers comprehensive identity theft protection plans for both families and individuals. Their annual plan costs $21.66 per month, while the monthly package is priced at $25.90. They provide excellent online protection with a system that alerts you to potentially harmful websites. Additionally, the service includes credit and Social Security number monitoring.
5. IdShield
IDShield offers affordable identity theft plans for both individuals and families. Their individual plan starts at $14.95 per month, while the family plan, which covers you, your partner, and any dependents under 18 living with you, costs $29.95 per month. Both plans include features such as:-
- Personal information protection
- Credit monitoring
- Identity fraud protection
- Access to licensed private investigators
- Cybersecurity and device protection
When choosing a policy plan, consider its limitations and the costs associated with maintaining it.
Editor’s Remarks
As we conclude our article, we hope we have addressed most of your questions about this type of policy. Recovering from identity theft is a lengthy process that requires a lot of time and resources, so being prepared for it can protect you from financial losses associated with identity theft. Therefore, make sure to research and compare insurance quotes from different providers so that you get a policy best suited for your needs. Additionally, you can consult with insurance agents who have detailed knowledge of these policies for further assistance.
Frequently Asked Questions
Identity theft insurance is intended to protect not only victims of identity theft but also other people from the financial losses that they may incur during the identity restoration process. With an identity theft insurance policy, you’ll receive all the necessary support to help you recover from identity theft. The costs, benefits, and limitations of each policy will vary depending on the provider.
Identity theft happens when someone uses your personal information, such as your Social Security number or bank account details, to steal your identity. With access to your credit card information, they can make transactions and purchases as if they were you.
Theft insurance is a policy that covers your personal belongings or assets in the event they are stolen. This type of policy is often included in home insurance, so if your insured property is stolen, the premium will cover the replacement costs.
This generally means that, according to your policy, you could receive up to $1 million in coverage benefits as an identity theft victim. This reimbursement can help cover financial expenses such as lost wages or legal fees incurred while restoring your identity.
Identity theft occurs when someone gains access to your personal information, such as credit card details or bank account numbers, and uses your identity to obtain goods and services. It’s advisable that you protect yourself from the financial losses associated with being a victim of identity theft.
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