you up with ongoing monitoring after fraud occurs
Regardless of your coverage under an identity theft policy, understand the deductibles, limitations and exclusions.
Where to buy identity theft insurance
|American Family|| |
|Liberty Mutual|| |
|MetLaw/Hyatt Legal Plans|| |
|State Farm|| |
Many major insurers offer identity theft insurance as an add-on to existing homeowners or renters insurance policies. You may also be able to get coverage — and access to legal counsel to put the pieces back together— as a benefit through your employer.
“People would rather go to the dentist than go see a lawyer,” Tolentino says. In response, MetLife recently added CyberScout’s credit monitoring and identity theft resolution service to MetLaw, its legal-services employee benefit plan.
Prices for identity theft insurance vary but are usually between $20 and $50 per year when added onto your homeowners or renters insurance policy.
Plans also are available from direct-to-consumer companies such as LifeLock and Experian.
Is identity theft insurance worth it?
Banks and credit card companies rarely hold consumers responsible for unauthorized charges or withdrawals, as long as you report the problem right away. Likewise, most homeowners and renters insurance policies provide some coverage when money or credit cards are stolen, but often with very low limits.
When it comes to identity theft, stolen money is often only the beginning of your worries. Thieves may use your personal information to:
- Establish phony insurance policies
- Open unauthorized credit cards
- Obtain unauthorized loans
- Rent an apartment
- Establish unauthorized utility accounts
- Get a job
- File taxes and steal the refund
- Expose your private life
Consequences of a stolen identity can include:
- Lower credit score
- Incorrect credit history
- Incorrect criminal history
- Higher insurance rates due to poor credit
- Difficulty qualifying for loans
- Stolen tax refunds
- Difficulty finding employment
- Exposure of sensitive personal information
- Theft of physical property
“It’s not just financial exposures, it’s your digital reputation,” Cullina says.
These long-term consequences, which can be very expensive to fix, leave many wishing they had a way to recoup costs and get expert advice. Depending on the policy, identity theft insurance can deliver both.