Yesterday’s post was the first article in the Insurance You Can Do Without series. The second topic is a relatively new insurance product, identity theft insurance.

If you become a victim of identity theft, an identity theft policy covers lost wages and any other expenses you incur to clear it up. It does not cover the actual loss, since this is often covered by the bank. The majority of crimes classified as identity theft are unauthorized purchases with a stolen credit card number. This can usually be dealt with with a phone call and sending in any information you have to back up your claim. So if identity theft doesn’t insure the loss, and it obviously can’t protect you from the crime of identity theft, is it worth the cost? You might decide it’s not. Identity theft insurance can cost $25-$50 a year, and if you eventually need to make a claim, expect to pay a deductible in the hundreds of dollars.

A better way to protect yourself from identity theft is to shred your documents, review your bank statements for unusual charges and check your credit reports. If you’re a CAA member, you can register all your  credit cards with them for free. Then if you lose your wallet or purse, you can phone one number and have all the card issuers notified. Being diligent with your personal identification and financial information will go much further in protecting you from identity theft.

• Identity Theft: A Double Tragedy
• Choose a Shredder for All Your Needs
• Fraud, Identity Theft Grow At ATMs

Related Posts:

• Insurance You Can Do Without – Involuntary Unemployment Credit Insurance
• Insurance You Can Do Without – Credit Life Insurance
• Insurance You Can Do Without – Life Insurance For Your Child