There are a few things that we used to be able to take for granted in the world, one being that no one could assume our identity. That’s not true anymore. Over 8 million unsuspecting people were affected by identity theft in 2010 at an estimated cost of $37 billion. Most of those charges could have been avoided with a simple fraud identification program.
Identity protection isn’t something that your parents told you about when you were venturing out into the world, not because it’s new, but because it just wasn’t all that common until the advent of computer based transactions. It is now far easier for someone to access your accounts and use your information as their own. In most cases all of the transactions are done over the Internet or in areas thousands of miles from where the victim lives.
The major argument against getting a protection plan is the cost. Well, that’s no longer an issue. For people who can't afford comprehensive identity theft protection plans ($120-$150 a year), there is now a free option from AllClearID. This is a standard search that checks bank account and credit card activity to look for suspicious transactions and then alerts the account owner about it.
When you think about it, protecting your identity is just as important, if not more so, as protecting your home and car with comprehensive insurance. The average loss that occurred for each instance of identity theft in 2010 was just over $4,500. That is enough to cover all of your other insurance needs combined. These losses can range from something as small as a few charges on your credit card at a gas station to people stealing your identity and using it to secure loans for high-ticket items like sports cars, boats and real estate.
While a free service is nice, your current home insurer most likely offers identity theft insurance. This type of insurance can be added onto a policy for between $25 and $10 per year. While the insurance agency may not specialize in helping people recover their identities and nullify the damage that was caused to credit ratings, it will pay for experts that are to the tune of between $10,000 and $25,000. Is peace of mind worth $8 a week? We think so. Call us today to discuss your homeowners insurance coverage options at (702) 616-0889.