See How Identity Theft Insurance Can Protect You

While identity theft insurance cannot prevent you from becoming a victim of identity theft, it does provide you with protection against the high costs and headaches that results from identity theft. Clearing up identity theft issues can be very expensive and time consuming.
Most all standard identity theft policies issued will provide for 100% reimbursement of all out of pocket expenses up to a predetermined amount. these policies are very similar to other forms of insurance such as auto, homeowners, and health insurance in that you are responsible for paying a deductible.

An identity theft insurance policy covers:

• Lost salary and wages for time taken off to deal with the fraud.
• Mailing costs associated with the required affidavits and legal papers.
• Any application fees for loans that were declined due to errant information caused by the fraud.
• Phone charges associated with dealing with the fraud.

Perhaps the greatest expenses incurred while dealing with identity theft are the legal fees. This is where having identity theft insurance really pays off. If the fraud is extensive enough then an attorney will be needed to assist you with the following:

• Defending against lawsuits, liens, and collections that creditors erroneously file against you as a result of the identity theft.
• Having criminal and/or civil charges entered against you as a result of the fraud dismissed.
• Dealing with the three credit bureaus, Experian, Equifax, and TransUnion to get your credit reports cleared up.

Bear in mind that identity theft insurance is different than an identity restoration service. The difference lies in the fact that identity restoration services will help you with all the paperwork that you will have to deal with, but will not cover the costs associated in dealing with identity theft.

As stated earlier, while identity theft insurance cannot prevent you from becoming an identity theft victim, it can help by covering all the legal costs associated with it. And as we have pointed out, these expenses, depending on the severity of fraud, can be rather substantial.