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Identity Theft Insurance and Tips for Protecting Against Identity Crimes

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Indentity GuardIdentity theft is a serious danger you may experience anytime. Today when most of our transactions are done online, malicious persons have lots of chances to steal your personal details and use them without your knowledge for their own benefit, because of which you can come into serious trouble. In such a scenario, identity theft insurance can be a way out. There are also many other options to protect yourself from identity crime. Let’s understand them one-by-one.

What does Identity Theft Insurance Cover?

Some of you may be a bit misguided with the word “insurance” that identity theft insurance will reimburse them if they have to suffer any financial loss due to identity theft, just like other types of insurance does for other commodities. However, according to experts, ID theft policies often are not as traditional as consumers may think about insurance; but, though they are called “insurance”, more correctly, they are reimbursement programs for expenses.

ID theft insurance doesn’t compensate for the costs you had to pay because of identity theft or the loss you suffered due to getting victimized. It may cover expenses like lost wages, phone bills, certified mailing expenses, notary and even fees of attorney, according to some other experts.

beware of identity theft

How does Identity Theft Insurance Work?

ID theft insurance reimburses the policyholder for the costs incurred to recover her or his identity, up to the limits mentioned in the policy. The limit of the coverage ranges from $10,000 to $1 million. Though the range may seem generous, the coverage terms may include some hidden points which may fade out the delightful appearance. Therefore it is advisable to read the fine print in the offer document and understand the terms and conditions well, along with exclusions.

identity theft insurance

Some points you should check importantly are:

Whether the policy includes any other services: Even though ID theft insurance reimburses or compensate for the expenses involved in pulling through the incident, it doesn’t lessen the time and hassle put in to repair the damage. So, inquire if the insurance provider provides any help with the recovery process.

Whether there is a deductible: A sizeable deductible, like $500 or even more, is not uncommon for ID theft insurance. If the amount required to rectify the situation is less than the deductible, you may not be helped with any of those bills.

Whether the policy covers lost wages or legal expenses: ID theft policies may not cover the lost time from work and legal expenses. Or if they are present in the policy, there are limitations on payout and also there might be a requirement of preapproval. Since ID theft can be so pricey, an insurance policy that particularly offers reimbursement of legal fees or lost wages may be worth the amount of premium.

Other Ways of Identity Theft Protection

Besides the ID theft insurance, you can get many other options for protecting yourself from identity fraud, like identity theft protection services, like that provided by Identity Guard. Read a comprehensive Identity Guard review and find how you can be benefited by their services.

Indentity Guard

Another option is credit monitoring services; but they may not find out some types of identity theft. They also won’t alert you about many kinds of activities related to ID theft; e.g. if somebody is obtaining a birth certificate, Social Security card, driver’s license, or any such document on your name.

Getting and reviewing your credit reports may be another way to protect yourself from ID theft. You are entitled to get your credit report for free from each of the three credit reporting companies according to the federal Fair and Accurate Credit Transaction Act, once in a year. You can also consider freezing your credit which will keep identity thieves away from your accounts or starting new ones on your name.

To protect yourself from ID theft, you have several risk-management systems available, both free as well as paid. Lots of consumers fall prey to ID crimes despite being absolutely faultless; however, it is crucial that you should be vigilant and careful about protecting your personal information all the time.

More Tips for Protecting Yourself from Identity Theft

Avoid keeping a lot of your personal information in your wallet or purse. Keep it to the minimum. Also avoid carrying Social Security card, extra credit cards or passport unless it is extremely necessary.

avoid carrying multiple credit cards

Don’t forget to take receipts of ATM or credit card transactions. After taking them, don’t throw these receipts into public trash cans. Don’t even forget them on the counter or tuck into your shopping bag from where they can fall out easily or taken out by the thieves.

Don’t share your bank details, insurance details or any money-related details over phone, email or anywhere on the internet, unless you are sure that the line you are communicating through is safe.

Be careful while shopping online. Make use of only authentic websites for the purpose. Before you submit any personal details, check that the website name starts with https:// rather than http:// or ensure that the padlock image is present on the status bar of your browser.

look for padlock

Beware of pharming and phishing scams. These scams are characterized by fake emails as well as websites to imitate legitimate organizations. Be careful while opening emails and messages from mysterious senders and never share your personal financial details through emails.

Remember to install firewall, antivirus and antispyware in your computer and keep them updated always.

Keep monitoring your accounts. Don’t wait till your bank or credit card company to alert you of any distrustful activity. Review your credit card and bank statements regularly and ensure that all the transactions are correct. If you are doubtful about a particular transaction, contact the bank or credit card company at once.

Take care of destroying any document containing your personal information before throwing them away.

Safeguard your credit card at the time of making purchases. While using ATM machines, shield your hand. Take the same care while making remote phone calls. Keep an eye on whether there are any “shoulder surfers” around and remain alert from them.

shoulder surfer

Identity theft can put you in serious trouble and it may encounter anytime. So, you should protect yourself always and take help of identity theft insurance if necessary to recover from the loss.

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