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No one is immune to identity theft these days, with data breaches occurring at alarming rates. Preventing ID theft is a difficult task, even for professional ID theft experts. Monitoring your personal info and credit reports can help, but where you may need assistance the most is when your identity gets stolen. There are many insurance policies and services that can help you quickly and efficiently restore your identity with little out-of-pocket costs to you. Learn more about identity theft insurance, including our reviews of the best insurance available.
Identity Theft Protection vs Identity Theft Insurance
You might be asking yourself – “what is the difference between identity theft insurance and identity theft protection?” A lot of the companies that we rank in our best identity theft protection article offer identity theft insurance as part of their package. They also constantly monitor your credit reports and send you alerts if something seems suspicious. The companies here typically don’t do that. These policies offer expense reimbursement for dealing with the consequences of identity theft, but they do very little (if anything) to proactively help protect you. That said, these policies are much less expensive and, chances are, you already have a relationship with a company that can offer you coverage. If you have a homeowners or renters policy, identity theft insurance is usually an optional add-on that you can choose. Call your local agent to find out the specifics. Below we have some examples of identity theft coverage from some of the most popular insurers in the U.S.
Frequently Asked Questions About ID Theft Insurance
Here are some answers to commonly asked questions regarding personal identity theft insurance:
What Is Identity Theft Insurance?
Identity theft is a crime in which someone steals your personal information, such as a Social Security or driver’s license number to impersonate you. Most homeowners and renters insurance policies provide limited coverage for stolen money or credit cards, but identity theft insurance is an entirely different type of coverage. Some companies now include identity theft insurance coverage on homeowners insurance. Others sell it as either a stand-alone policy or as an add-on to a homeowners or renters insurance policy.
What Does an Identity Theft Insurance Policy Cover?
Identity theft insurance reimburses you for the cost of restoring your identity and repairing your credit reports. It typically covers expenses such as lost wages, phone bills, notary and certified mailing costs, and attorney fees ( but you usually need prior consent from your insurer). Some identity theft insurance companies also offer restoration services to assist you in the process of recovering your identity. But most ID theft insurance does not cover monetary losses you may have suffered from fraudulent charges or loans taken out in your name.
How Much Is Identity Theft Insurance?
The National Association of Insurance Commissioners (NAIC) says that identity theft insurance cost ranges from $25 to $60 per year. Most policy benefit limits range from $10,000 to $50,000 with deductibles ranging from $0 to $500.
Should I Get Identity Theft Insurance?
First, check your existing homeowners or renters policy to find out if it includes coverage for ID theft or if identity theft is available as an optional coverage. If coverage isn’t already included, is identity theft insurance worth it? It depends on the policy’s coverage. The NAIC advises consumers to read each policy’s fine print carefully.
Best Identity Theft Insurance Reviews
Identity theft policies probably won’t differ by much, if at all. Our advice is to contact your local agent to ask about adding identity theft insurance to product that you might already have. Below are some of the leading companies that offer identity theft coverage in alphabetical order.
Allstate Identity Theft Insurance Review
Allstate’s identity theft insurance is only available as an add-on to a property policy. Allstate’s identity restoration coverage provides both restorative and preventive services. You get unlimited access to fraud specialists from Identity Theft 911®, who handle everything from fraud alerts to creditor inquiries. But Allstate’s website isn’t transparent about exactly what kind of preventative measures they take or how much this add-on costs per year.
- Must contact Allstate for pricing
Nationwide Identity Theft Insurance Review
Nationwide identity theft insurance offers a stand-alone policy, which could be a good choice if you don’t need a property insurance policy. Their ID theft policy includes $25,000 reimbursement insurance and covers most types of ID theft, including medical ID theft. Like Geico, Nationwide outsources to Europ Assistance’s team of identity theft experts for your monitoring and resolution services. One insured member of your ID theft policy gets free credit monitoring and alerts for your TransUnion credit report, as well as online data protection against key logging and phishing attacks.
- Must contact Nationwide for pricing
State Farm Identity Theft Insurance Review
Like Allstate, State Farm identity theft insurance is only available as an add-on to a property policy. This protection from one of the nation’s largest insurance companies provides you $25,000 restoration insurance in the event your identity gets stolen. While State Farm doesn’t monitor your credit, they do assign you a dedicated case manager who works directly with credit card companies, credit bureaus and other financial institutions for up to one year after a covered ID theft incident. This protection is available as an add-on to a State Farm home, apartment, condominium, manufactured home, or farm policy.
Tips to Protect Yourself from ID Theft
Check out the tips below from Transunion about how to protect yourself from identity theft.
Want to Know More About Identity Theft?
If you want to learn more about identity theft, be sure to check out our ultimate guide to identity theft. We cover every question you may have, from how to know if someone has stolen your identity to how to report identity theft. And be sure to check out our reviews of the best identity theft protection services so you can act now to safeguard yourself from ID theft.
Do you think getting identity theft insurance is worth it?