Editor’s note: This is a transcript of the audio file.
According to one recent report, more than 11.6 million American adults fell victim to identify theft last year, 13 percent more than the year before. With the problem getting worse, should you buy ID theft insurance? I’m Doug Whiteman with your Bankrate.com Personal Finance Minute.
Identity theft insurance is a frequently misunderstood product. It doesn’t pay for the costs to fix your identity or the injuries you suffered as a result of being victimized. But it will reimburse you for expenses you incur trying to restore your good name.
The Insurance Information Institute says the insurance may cover expenses such as phone bills, lost wages, notary and certified mailing costs, and even attorney fees. Executive Director Michael Barnett with the Identity Theft Protection Association says often there’s a pretty big deductible, such as $500 or more.
Barnett notes that consumers have other options for protecting themselves against ID fraud, such as credit monitoring services. For more on whether identity theft insurance is right for you, visit Bankrate.com. I’m Doug Whiteman.