In this day and age, identity theft has really increased making it one of the leading concerns worldwide.
It has been projected that approximately 10 million people in the US have been victims of this crime already.
Due to the sheer number of people falling victim to this fraudulent crime, identity theft insurance companies are springing up in huge numbers.
There is so much competition as people receive mails from a number of these companies informing people of the services they offer and how vulnerable they are without these services.
Identity Theft Insurance
To begin with, this type of insurance is there to cover you from all the costs that you may incur if and when you become a victim of identity fraud.
This insurance also promises to protect you from all the time spent in dealing with the mess and all the problems that arise as a result of your identity being stolen.
Your insurance cover also comes with an extra service known as credit monitoring that works to continuously check your credit report.
This report is usually gotten from one of the three credit reporting companies.
The main reason for them checking on your credit report is to look for any discrepancies such as any changes in your residential address, new accounts opened using your details or any investigations on your account that may be suspicious.
It is important to know that a good number of these companies that are offering identity theft insurance and other connected services are banks and credit card companies which is ironic when you consider that these are sometimes the same companies that are unsuccessful in guarding your private and financial details in the first place.
Is Identity Theft Insurance Really Necessary?
Some consumer specialists claim that you do not require protection against identity theft, the main reason being that this insurance will not give you back the money stolen from you.
Some plans are known to reimburse a person’s lost earnings which amounts to $2,000 or so and also cater for all the legal fees.
However, the latter is not necessary since lawyers are not needed in identity theft cases due to the fact that creditors always deal directly with the individual concerned.
It has been estimated that a large number of identity theft criminals are people close to the victims, in most cases family members.
However, even with this fact, insurance companies that deal with identity theft do not pay up if the person who committed the offense is related to the victim.
As much as insurance can protect us to some extent we are better off safe than sorry, therefore you can also work towards protecting yourself.
This can be done through simple and easy ways.
You can begin by simply guarding your social security number and pay your bills online as opposed to receiving them through mail.
You can also read my tips on how to protect yourself against identity theft.