Many identity protection services include identity theft insurance as part of their packages. But what does this insurance actually cover, and is it worth having?
What Identity Theft Insurance Covers
Identity theft insurance typically covers expenses related to recovering from identity theft, such as:
- Lost wages from time taken off work
- Legal fees
- Notary and certified mailing costs
- Phone bills related to recovery
- Credit report costs
What It Typically Doesn't Cover
- Direct financial losses (stolen money)
- Fraudulent charges on your accounts
- Losses covered by other insurance
Note: Most financial institutions already protect you from fraudulent charges, so the insurance focuses on recovery costs, not stolen funds.
Do You Need It?
Identity theft insurance can be valuable if:
- You want peace of mind knowing recovery costs are covered
- It's included with a service you're already using
- You've been a victim before and know the recovery burden
Services like IdentityIQ include identity theft insurance as part of their protection packages.
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