Do You Need Identity Theft Protection?

Identity theft is one of the fastest growing crimes in the country. When your identity is stolen and your credit is trashed, it can cost you a great deal of time and money while you repair your credit. The threat of having your identity stolen is a scary prospect. Several companies now offer identity theft protection. The cost is usually pretty reasonable, but do you really need it? It may or may not be the right choice for you.

What is Covered

Identity theft services vary by company, but usually cover expenses like phone calls and document notarization. You may be able to get legal defense fees and lost wages reimbursed as well. Many of these services will monitor your credit for you, will put a fraud alert on your credit report, and will notify you if any suspicious activity occurs.

Do-it-Yourself Protection

With a little knowledge and time, you can clear up your own identity in the case of identity theft. You will have to send out letters, make phone calls, and get organized, but having your identity stolen is not impossible to recover from. You also should not ever have to pay the Visa bills that some crook took out in your name. You can check your credit for free once a year by visiting annualcreditreport.com. You can also remove your name from junk-mail lists and eliminate the credit card offers that thieves sometimes use to take out credit in your name. While identity theft protection will help pay for defense costs if you are sued for an identity theft related incident, in most cases, people never have to appear in court when their identity is stolen. If you are strapped for cash, don't think that you are doing the irresponsible thing if you can't afford identity theft protection.

Do You Want Identity Theft Insurance?

While identity theft insurance isn't as essential as automobile and homeowner's insurance is, it may give you peace of mind. The insurance is relatively inexpensive, and it doesn't really hurt to purchase it. It can save you time, as it will monitor your credit report regularly for you, and will let you know if anything suspicious pops up. If you are at risk for identity theft, or want to have help in case your identity is ever stolen, you may want to make the investment. Consider this insurance as a nice thing to have in case of identity theft, but don't feel guilty if you are having financial problems and are unable to afford it.