Identity Theft Insurance – 5 Tips To Make The Best Use Of It
In today’s world, identity theft is among the fastest growing types of crime in the UK and America. In fact statistics tell us that it happens once every three minutes in the United States! In the United Kingdom about a hundred thousand cases are reported every year. Most people are not too concerned about this whole business – until it happens to them!
What does it mean?
When an imposter deliberately uses your personal details for his or her own benefit, we call this a theft of identity. It may be something like your social security number, your credit card pin, your bank account number, your birth certificate or even your mother’s name! If a person uses your personal details, he takes on your identity. For example if he uses your social security number to identify himself on the internet, any crime he commits on the internet will be traced back to you and not to the thief. There have been cases in the States where people have been wrongly arrested for the crime someone else committed simply because the guilty was using an innocent man’s drivers’ license.
Identity theft has not been commonly used for the purpose of terrorism, but it could be. Any crime that a person commits when under your identity is inevitably traced back to you. It could soon become the way of espionage and terrorism.
Once the theft does occur, even if the person who used your identity is caught, you will spend many unhappy and irritating moments trying to convince people ‘it wasn’t you who did it’.
What you can do about it
Well, prevention surely is better than cure, where identity theft is concerned. Insurance policies against this are probably the best route to take. After all, this IS theft we are talking about. When you can insure your car and your belongings against theft, why not your identity? Of course insurance cannot prevent the theft, but it sure can help you back on your feet if and when the need arises.
When looking to take an identity theft policy, follow the five golden rules:
1. Know exactly what the policy states, word for word and the fine print as well.
2. Make inquiries about deductibles
3. Keep in mind that this insurance usually does not cover direct losses to finances. Speak to your agent about this, and if he speaks against this statement, he is probably just out to sell you a policy by saying any thing he pleases to!
4. Do check out all limits of the policy – check if the policy covers salary loss due to identity theft – this is the most important to you.
5. Verify if the legal fee is included in the policy or will you have to shell out towards investigations to the identity theft.
Abhishek Agarwal
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