Identity theft is a topic on everyone's mind these days and with it, insurance against it also a hot topic. Many of these identity theft insurance policies, while priced reasonably, are extremely limited in their benefit structure and are "typically not worth the money," stated the editors of Consumer Reports magazine.
While there are numerous statistics being collected about the number of identity theft victims annually, there is no real, solid figure. The Federal Trade Commission estimates that there are about 9.3 million individuals unlucky enough to make this list. However, a recent report delivered by the Justice Department puts the figure at 3.6 million households that were victims of id theft, and the majority of these incidents revolved around a stolen credit card, and not the account opening and fake ID crimes that are considered to be much more serious.
Publicity has been high regarding identity theft as it is considered one of the fastest-growing consumer crimes in the country today. People are more than willing to buy some insurance and peace of mind for $20 to $100 a year on their basic homeowner's policy or from a stand-alone product marketer. It seems a small price to pay to save one's financial privacy and stability. Encouraged to get some form of protection, Karl Newman, president of the Northwest Insurance Council, feels that something is better than nothing.
The real question then comes down to, what are you getting for your money?
There are many cautions for consumers when buying identity theft insurance in that some "cannot protect the consumer from becoming a victim of identity theft, nor does it provide direct monetary compensation when losses are incurred. What it actually provides is coverage of expenses to deal with the problem when it arises including the costs of making calls, copies and mailing of documents necessary to resolve the issue. It can also provide, in some cases, help with legal bills.
When looking to invest in a identity theft policy, Jay Foley of Identity Theft Resource Center in San Diego, cautions that some policies don't cover legal fees or lost wages from time lost at work. He also says that when looking for a policy, look at the deductible which can usually range from $100 to $250. Read the fine print, because he's also seen some deductibles that went as high as $1,000.
There is a free alternative also available in that you may qualify for free ID theft protection depending on which credit card you have. For example, American Express offers free identity theft assistance for its cardholders and more and more credit card companies are following suit. Amex gives you round-the-clock telephone access to their representatives who will quickly help you determine if identity theft has occurred and what to do to recover from it.
To find out more about how you can protect yourself against identity theft, visit http://www.identitytheftprotectionsite.com/identitytheftprotection.php and learn 10 methods for identity theft protection.
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