Identity theft is one of the fastest rising kinds of crimes of modern times. This involves the use of the name and information of a person for any purpose of fraudulent transactions. Because of the widespread nature of this crime, insurance companies have devised protection plans for people who might be victimized by the criminals.
Identity Theft Insurance
This is a kind of insurance that can help you recover expenses in the process of restoring your identity if you become a victim of an identity theft crime. This will also include expenses in the clean-up report. The expenses that you will incur in fixing the adverse effects of identity theft can be massive, thus you should get this type of insurance, especially if you are involved in risky activities on the internet or real world.
Expenses covered by identity theft insurance
- Credit report copies
- Lost wages
- Notary, courier and mailing costs
- Phone bills, faxes and photocopying
- Attorney's fees etc.
The average cost of identity theft insurance with a $20,000 cover is $200. You can have this as an add-on cover that can be included in your homeowner's insurance. You can also buy it as a separate and distinct policy on your name.
Although the expenses for restoring your identity are covered by the insurance, you have to take note that the process also takes a long time. This makes the procedure of clearing the damage abominable and exhausting.
What is not covered by the id theft insurance?
Although most of the expenses are covered by the identity theft insurance, the policy applies only to frauds on credit. It will not cover other common law violations such as driving offense; it does not restore your good credit record and neither does it clear any criminal records For the clearance of your name, you will have to follow other procedures yourself and the process takes longer than you could imagine. Still, id theft insurance can be helpful in obtaining lost money. The insurance will protect you from losing your assets once you become a victim of the heinous crime.
It is advisable that you take necessary measures to ensure the protection of your identity. Do not throw away your documents without consideration. Moreover, do not share your information online without making sure that you are dealing with the legitimate entities. Such small measures along with a proper insurance cover can prove to be really helpful in the long run.