Identity theft can happen to anyone these days. All it takes is for someone to get your passwords off your computer, get your credit card number, or steal your wallet and find your social security card or license. ID theft can happen very quickly (and without your knowledge), but getting your identity back can take a lot of time and money on your part.
According to an article from our partners at Mainstreet.com, over 217 million people have been affected by identity theft, making it one of the fastest growing crimes worldwide. This is a huge problem and it continues to grow! Most people are never caught for stealing your identity, but many of your banks will take the financial burden upon them and cover the debt that was accumulated in your name.
However, Identify Theft Insurance could save you a lot of wasted time and money that you may have spent re-gaining your own identity. This type of insurance is fairly new to the insurance industry. Your bank and credit card companies are still responsible for the money that you have lost due to others using your name against your will. However, this new type of insurance will help you through the time and money you could potentially lose filing all the legal paperwork, etc. to get your name back.
Depending on the insurance company, they offer Identity Theft Insurance in a variety of ways. Some insurance companies offer it through homeowners or renters insurance and others use it as a stand-alone policy. You want to make sure to check with your current insurance company to see if you are already covered before purchasing additional coverage. This way you aren’t duplicating what you already have!
The cost for this type of insurance will depend on what insurance company you have/use. Often times costs can range from about $60 to $160 per year for coverage but can also cover anywhere from $15,000 to $25,000 worth of costs that you may incur due to your identity being stolen. These types of costs could be legal costs, shipping costs for documents that must be sent out, and other costs you may not even consider such as loss of wages due to being in court instead of at work.
Another Geezeo article lists several ways to protect yourself against ID theft so you might not have to use your insurance.
Some of these suggestions include:
Monitoring your bank and credit card accounts
Pay with cash
Don’t carry important/personal documents with you unless you need to
Use a shredder
(To see the reasons behind these suggestions check out the full article here.)
Just remember, ID theft can happen to anyone regardless of if you have 15 credit cards or no credit cards. As long as someone can get a hold of your name and personal information, anything can happen. Just be safe and make sure you keep track of your finances and personal documents.
Photo: Jane M. Sawyer
Related Articles:
Protect Yourself from the Politics of ID Theft
A Stolen Wallet May Be Worse Than You Thought
Carrying Cash – Dangerous?
