Identity Theft Prevention Insurance

If you have researched identity theft or identity theft prevention insurance you've probably noticed the ENORMOUS amount of information available.

This page will tell you the pros and cons of identity theft prevention insurance.

Type in identity theft insurance into google and you'll notice a bunch of different information is available. There are many companies out there pushing their version of identity theft insurance. However, if you read the real information (not the ads), you'll find that the "experts" think identity theft prevention insurance is not worth the money. Heres why...

...even though the insurance plans are cheap (anywhere from $25-100 a year!) they may not provide you with what you really want. Most people want these policies to cover their STOLEN MONEY. If my identity was stolen I know I'd want an insurance policy to cover my stolen money. However, these plans, dont do this.

Insurance is great for auto accidents, house fires, storm damage, etc. Typically, when you have a problem that needs to be fixed, you will get reimbursement for the damage. With identity theft its hard to evaluate what needs to be fixed. In some cases there may be not money stolen. Maybe your medical identity was stolen, or a crime was committed in your name. The insurance company can't reimburse you in these cases. How could they?

In most cases, identity theft takes place when someone tries to use a stolen credit card. Maybe they rack up tons of debt in your name. How would identity theft prevention insurance reimburse you? They cant in this situation.

Is it worth purchasing?

Its both good and bad. I described above how it may offer nothing for you even if your identity was stolen. But in most cases it could help you out.

Most insurance plans cover expenses associated with RESTORING your identity. Whether its your phone bills, mailing and postage expenses, lost wages, or even attorneys fees, the insurance plans will reimburse you for these expenses. The insurance usually covers up to $20,000 in associated expenses. Most experts believe that the small cost of the insurance isnt worth it.

They think its not worth getting because in most cases you wont have many expenses. The cost of MOST identity theft restoration is minimal and the insurance providers are essentially making money off you and providing little in return. The problem with identity theft is not the associated expenses, but the TIME it takes to restore your identity. Identity theft prevention insurance cannot reimburse your time spent trying to restore your identity. This is something you will never get back!

Fortunatly there are identity theft prevention plans that actually assist and do MOST of the work in restoring your identity. These are more valuable than identity theft insurance plans.

In the end, the insurance plans are legitimate products and may help cover your expenses when you are restoring your identity. They'll help cover your expenses and assist in getting your life back, often for under $100 a year. Combining an insurance plan with a legitimate identity theft prevention AND restoration service will virtually eliminate any headaches you might get from an identity theft. Just make sure you read the fine print before purchasing an insurance plan.

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