Happy New Year! Our first blog of 2017 is adapted from the recent Consumer Reports. The question is whether to invest in identity theft coverage.
Seeking to tap into another area of anxiety, insurance companies are offering identity theft coverage. According to money editor Jeff Blyskal, most coverage, which tends to cost between $25 and $50 per year won’t prevent or even alert you to identity theft. It will reimburse you for losses or expenses that you may incur as a result of the crime. Though that sounds good, most bank and credit card companies already cover most or all losses due to fraud.
According to the Department of Justice’s statistics, 88% of identity fraud victims suffered no out of pocket loss in 2014, the latest year which data are available. Of those who lost money, the median loss was $70.
Insurance company coverage usually includes assistance in straightening out the aftermath of identity theft which is generally easy when the fraud involves credit cards–the most common type–but can be more time consuming for accounts at banks and other institutions.
If you purchase protection, make sure you know what it provides.
Best case scenario is to take all precautions to protect your identity in the first place–including shredding all obsolete confidential records.
For more on best practices for identity theft prevention, please visit www.hvshred.com or www.legalshred.com
Happy New Year!