Identity Theft Insurance

[rduell]

Does anyone have identity theft insurance? Do you think it's worth the money? With it being such a problem now I've been thinking about getting it. I see that Zander's is $140 a year for a family. Do you think it's worth it to have someone else do all the work if your identity is stolen rather than have to do it yourself?

[creditcardfree]

It probably is worth it, because of the financial devastation it could cause. From what I've heard on Dave Ramsey, it is very time consuming to get things corrected and can take years. It's only $11.66 per month...many of us spend more than this on movie rentals, cable, soda and liquor.

Just my thoughts...I personally have not bought it yet. Thanks for the topic of discussion.

[rduell]

Originally Posted by creditcardfree

From what I've heard on Dave Ramsey, it is very time consuming to get things corrected and can take years.

That's what got me thinking about it. My boss isn't here today so I'm taking the opportunity to listen to past shows on the internet while I work.

[vsjhoc]

IMHO, I don't think it's worth it. What is the insurance supposed to do for you?

1. Cover any liability you have from fraudulent charges? You don't need this if you report the loss as soon as you discover it. Most major cards (Visa, MC, Disco) now have a zero liability policy.

2. File paperwork for you? You still have to give them all the information about your creditors, etc. So you have to dig up all the info in order to give it to the insurance company. And they can't file a police report for you; that's up to you.

3. Call all the credit bureaus and lodge a fraud alert? You can do this with one phone call, because one bureau is supposed to tell the other two (but of course they don't always comply).

4. Cover your loss from the time spent clearing up the mess? Very difficult to show you suffered quantifiable damage. You can't really justify taking an unpaid day off work to make a few phone calls.

I think you end up spending just as much time working w/the insurance company and checking that they are doing what they are supposed to do, than if you handled it yourself. Save your money, IMHO.

[instantinfo4you]

I agree with vsjhoc,
This is most definitely up to YOU. If you feel like you are at a slightly higher risk of identity theft then go ahead. If you dont shop online, or make a lot of cc purchases, you probably could get by without it. They are just playing on everybody's fear of getting their identity stolen. Sure it is a big mess when it happens, but notice how they don't tell you how often it happens. You probably have a better chance of getting struck by lightning, or getting mauled by a bear. This companie is striking your fear chord, and obviously doing a good job too. So to recap, this is a decision that is totally up to you.

[poundwise]

Not worth it.

The insurance companies are really pushing this because it represents a huge profit stream for them. They primarily use scare tactics to convince you that you need this coverage. Frankly, when you look at the angle of "what do you get for your money in the event you are a victim of ID theft?" it becomes clear to me that it's not worth it.

ID theft IS a growing problem and represents a huge headache and hassles for the victim. You should protect yourself. But taking care of your information and acting wisely is the best insurance.

[tabbycat31]

Also keep this in mind. Who has access to your mail, information, etc? Many people think that shopping online, etc cause ID theft. However more often than not, the ID thief is someone who has had face to face contact with a consumer, and perhaps has a legitimate reason to know thier information (ie ex spouse, parent, child, etc). It could also be a coworker, employer, landlord, etc. Students are also at risk for ID theft because (when I was there) many colleges use a SSN as an identifying #. Also a roommate could get into mail, etc.

I work for a CA (runs and ducks for cover) and I've heard several ID theft stories. One instance, a landlord was stealing the ID of tenants. Most often, an ex spouse (who already knows SSN, DOB, etc) is the culprit. I guess before buying insurance you should evaluate your risk. If you live with someone unrelated (roommate), are divorced, or suspect anything, I'd get it.

Another thing to consider is that many children, elderly, and deceased have their identities stolen. Someone could be using Junior's SSN and then it comes back to bite him when he's denied a college loan or employment at 16-18. And I've heard many horror stories of nursing home employees stealing the identites of patients and deceased patients.