Identity Theft Insurance – Is It Worth It

September 25th, 2008 by admin | Filed under Debt, IVA, Money Management, UK Bank Accounts, UK Credit Cards.

Since, last few years there has been a tremendous increase in cases of identity thefts in the United Kingdom. However, with identity theft insurance, it is now possible to protect yourself from such type of intrusion. Identity theft insurance will help you to resolve any doubtful activities, thereby giving you a mental harmony.

In case you become a victim of identity theft, your insurance company will help with the potential problems that may arise and assist you in bringing the financial life again on the track

What Does It Include?

Identity theft insurance covers all the expenses, which you will have to incur, if some one steals your identity. It includes bearing the entire legal cost for defending the criminal charges connected with the identity theft, lost wages (in case you need time to reclaim the identity), cost of telephone calls, redundant loan application charges and so on. Next, if you do not possess identity theft insurance, then you will have to bear all these expenses on your own. Therefore, it becomes very important to have such an insurance policy.

Several financial institutions offer identity theft insurance. To obtain such insurance, you will be required to pay annual fees or monthly fees through direct debit. Most policies cost around £ 3.75 to £ 6.99 each month or £ 45 to £ 84 each year. The insurance company then access your credit report and notifies you by sending alerts, if they come across any changes made to the credit report. Thus, if you have not applied for a loan and your credit report shows the loan details, or if changes occur in the bank account, then insurance company will immediately contact you and will lend a helping hand.

Although, identity theft insurance offers good value, there are typical criticisms about the same, which includes:

1. Identity theft insurance policies give the customers a false sense of protection, as they do not do anything to prevent the identity theft at first sight.
2. These policies do not offer full coverage to the victim. For instance, you may have to incur other expenses such as travel cost, stationery cost, phone bills and so on.
3. At times, you may find it troublesome to claim the amount
4. Some policies do not provide you with legal fees
5. Many policies may not give you lost wages

However, it is always better to shield yourself from the perils rather than regretting later.

Overview:

If you cannot afford to cope up with the money loss, if you lose your credit cards or debit cards and do not know as what to do, having identity theft insurance will be really worth at such times. To obtain the policy, simply contact the insurance provider and obtain details of policies offered by different companies and choose the company, which offers good services and help you with recovering the loss in an easy and quick way.
Thus, although, the cost of having identity theft insurance seems affordable, the benefits it offers are quite limited