One of the trendiest things in recent years is to purchase identity theft insurance. Buying a policy definitely cant stop thieves but is it worth the price and what does it accomplish if you are defrauded?

Between ID theft insurance and credit monitoring services, its hard to miss all the ads that companies put out these days. Part of the sales technique is a good old-fashioned scare tactic and it might be a pitch you dont want to fall for. First of all, many of these policies are offered by banks and credit card companies, and it is often their systems who are compromised first. The dont put all your eggs in one basket analogy holds up i this case. Dont have all your information in one place. The fact about these policies is that most of them dont pay for money that is stolen from you, and they promise legal fees being covered when usually a lawyer isnt needed to clear your case. The policies wont do any of the work that victims of ID theft have to do in contacting companies, writing letters and filing complaints. Also, if you read the fine print, youll see nothing at all will be paid if the theft is committed by a family member - and unfortunately this is often the case. With these policies costing anywhere from $100-250, it would seem more money conscious to buy a shredder, opt out of credit card offers and protect your social security number. Pay your bills online, decrease the amount of mail you receive with important information in it and just be prudent about all your information.

Identity Theft insurance is one type of insurance that the average person doesnt need to worry about having.

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