Evaluating Identity Theft Insurance Policies

It is virtually impossible to prevent every potential occurrence of identity theft, but there are ways to make yourself less vulnerable - at least financially. Identity theft insurance policies help mitigate the costs should you ever become a victim, and although these policies can't stop the inevitable, they do provide consumers with peace of mind. If you think that you might want to pursue this type of protection, you will need to evaluate insurance policies to make sure you get a good deal.

Deductible

You will have a deductible on any identity theft insurance policy, which is the amount of money you must pay out of pocket for damages before the insurance will take over. For example, if your deductible is $100, and you spend $800 (the standard) to correct the damage from identity theft, the insurance company will pay out $700. Just make sure you read the fine print, because some policies will have higher deductibles in certain circumstances.

Attorneys

You might need an attorney to help rectify the damage from identity theft, particularly if you are sued over purchases you didn't make. A solid insurance policy will cover your attorney fees when they are directly associated with the theft, and this is very important because attorneys are expensive. Keep in mind that there may be a separate deductible for this expense, so be sure to compare every facet of the policy.

Court Costs

In addition to your attorney fees, some identity theft insurance policies cover court costs from litigation or anything else you have to do. Even if you aren't sued, you might have to go to court to change documents or attain a new social security number, all of which will result in incurred fees.

Wages

Anyone who has ever been a victim of identity theft knows that fixing it can be time-consuming. You'll have to notify all of your creditors as well as the credit bureaus, go to court if necessary, dispute items on your credit report, and talk to the social security administration and perhaps even the DMV. This will probably require taking off from work, so find out if the identity theft insurance policies cover lost wages.

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