Identity theft, both here in the UK and around the world, is a massive crime which often has devastating effects on it’s victims.
Identity theft is also a popular reporting subject for the media which means that the man on the street is likely to think it is occurring far more than it really is.
Either way, insurance companies have spotted an opportunity.
Insurance cover against identity theft is something that is available to purchase from more and more companies.
Personally, I think it’s benefits are dubious though – most credit card companies and banks will waive any losses caused to an individual by identity theft anyway.
For some people, however, it may offer peace of mind and a quicker solution to money worries should the worst happen.
If you are contemplating such a product then I would recommend researching it thoroughly in advance.
Read the small print so that you are sure what is, and what is not, included in the cover that you are buying.
If you are thinking that such a product can help in resolving matters after a case of identity theft then you are mistaken.
Any creditor who has suffered a loss due to your identity being stolen will only speak to you.
Certainly in the UK, the Data Protection Act would prevent an insurance company from acting upon your behalf in such instances anyway.
Do you think identity theft insurance is a worthwhile policy to have or is it just another drain on your finances?
{ 2 comments… read them below or add one }
So are you saying id theft insurance is a waste of $$$ ?
Not necessarily – I’m saying make sure you know exactly what you are buying before handing your money over!