How to Get Identity Theft Insurance

You present your credit card only to find that it is maxed out. Then you call the credit cards company to demand an explanation only to discover that you are a victim of identity theft. There are things you can do to help minimize the likelihood of being a victim. Here's how to purchase identity theft insurance:

Instructions

Difficulty: Moderate

1. Contact your mortgage or credit card company to request an application for identity theft insurance. Some companies refer to it as credit monitoring insurance.
2. Review the coverage offered and premiums charged. Be aware that identity theft insurance might not reimburse you for money stolen. It may only reimburse some expenses like legal fees and lost wages. Know what you're buying before you sign up.
3. Complete the application and submit it to the sponsoring company.
4. Make premium arrangements. Many credit card or mortgage companies will include the premiums with your monthly billing statement.

Tips & Warnings

• Call your homeowners or renters insurance company. They may already offer some amount of protection under your current insurance policy.
• To decrease the likelihood of identity theft, be sure to shred all sensitive documents that contain items such as social security numbers and account numbers.
• If you decide not to purchase identity theft insurance, you can monitor your credit yourself by subscribing to a credit monitoring service. The major credit reporting companies allow you to request a free copy of your credit report annually.
• Often identity theft occurs because the thief has stolen sensitive mail from the victim's mailbox. Set up online bill notification and online bill payment as an alternative to mail.
• Thieves can also compromise your credit by stealing credit card offers from your mailbox. It is best to opt out of unwanted credit card offers by calling 1-888-5-OPTOUT.