Identity theft is on the rise and of growing concern to many. It is considered to be a federal criminal offense and can drastically affect a person’s life. While the best way to prevent identity theft is through safe identity protection practices, identity theft insurance can provide other protection in the event a person becomes a victim of identity fraud. Insurance against identity fraud provides many benefits, making it a recommended form of personal insurance that individuals should consider.

What Is Identity Theft?

Identity theft is the illegal acquisition of another person’s personal information, such as social security number, credit cards, and financial details, then using such information to commit crimes. Identity fraud typically results in thieves opening financial and credit accounts, taking out loans, and entering into other contracts based on the merit of the stolen information. It is also used as a way to obtain government benefits and assistance. Those who have had their identity stolen are then faced with these unlawfully opened accounts often with high charges, as well as the task of dealing with these accounts. Victims of identity theft can be drastically affected by this crime, as it can ruin their credit history, their reputation, and cause many other negative results as well.

What Is Identity Theft Insurance?

Identity theft insurance is a form of personal insurance that covers a policyholder in the event they become a victim of identity fraud. This type of personal insurance provides protections and benefit by paying for such things as:  the cost of credit bureau reports; penalties and reapplication fees for loans and other credit affected by identity fraud; costs incurred to regain one's identity and correct fraud; and coverage of some fees for legal issues resulting from the theft of their identity.

Perhaps the most useful benefit of identity theft insurance is that it provides critical identity restoration services to help victims restore their identity and deal with the problems encountered while their identity was being used illegally. Even after identity theft has been reported, actually getting things back under control can be a lengthy and complicated process.

Who Should Purchase Identity Theft Insurance?

Identity fraud can happen to anyone, regardless of age, gender, race, income, or any other specifics. It only takes the ability to access a social security or credit card number to commit identity theft. Today’s widespread use of the internet for shopping and financial transactions have increased the incidence of identity fraud, making it the most frequently committed type of consumer fraud.

Most identity theft insurance policies are fairly inexpensive, making them a worthy investment as this form of theft continues to rise. Yet buyers must understand what they are purchasing in order to make the most informed decision. Insurance fraud protection covers policyholders for the expenses incurred in restoring identity and helps them manage the complicated process to do this.  It does not cover the actual damages incurred, which must be dealt with through individual merchants and lenders.

Considering the low cost and type of crucial assistance it provides, identity theft insurance is something many may find to be a great help should they become a victim of identity fraud. To learn more about identity theft insurance and why it is an important addition to personal insurance coverage, contact an experienced insurance company for help!

Need Help With Personal Insurance In College Station TX?

See Jones & Associates For Identity Theft Insurance!

Call (979) 599-7532!

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