Don’t Let Identity Theft Take You for a Ride
According to the Federal Trade Commission (FTC), there's a new victim of identity theft every 10 seconds in the U.S. [*].
Unfortunately, it's almost impossible to completely protect yourself or your family against identity theft. Instead, it often makes sense to look for ways to protect yourself if — or when — the worst should happen.
This is where identity theft insurance comes in.
Identity theft insurance helps reimburse victims of identity theft by covering costs for losses and working to repair their credit reports. But many people are unaware of the dangers of identity theft and the advantages of identity theft coverage.
In this guide, you’ll learn what identity theft insurance covers, what it costs, and how to sign up for a plan that’s right for you and your family.
What Does Identity Theft Insurance Cover?
Identity theft insurance is a type of insurance that offsets out-of-pocket expenses that are incurred as a result of identity theft.
This type of fraud can damage your credit score, cost you thousands of dollars, and deprive you of government benefits. In the aftermath of identity theft, insurance coverage can bring you some relief. And identity theft insurance covers a lot more than you might think.
- Lost wages: Up to 12 months after your identity is stolen, your insurance will cover any time you take off from work to resolve issues related to the theft.
- Notary fees: Your policy will also cover any fees associated with verifying important documents or notarizing affidavits through a notary service.
- Mailing costs: Identity theft insurance covers any costs associated with shipping, such as tracking, postage, and envelopes.
- Phone bills: The costs of long distance phone calls or text messages incurred as a result of identity theft are covered.
- Child and elderly care: Any care costs (incurred by time spent resolving your identity theft issues) are covered.
- Credit monitoring services: Your insurance will cover costs for requesting credit reports or enacting a credit freeze or thaw.
- Legal fees: You'll also get help with attorney fees, transcript costs, appeal bonds, court filing fees, and expert witnesses or courier fees. Plus, you will be covered for any fees brought against you by a creditor or collection agency.
- Public records searches: Your policy will cover any costs associated with scouring public documents. Private investigator fees are also included, but your insurer will have to approve this first.
- Loan reapplication fees: You are covered for costs incurred for re-filling applications for loans, grants, or other previously denied credit as a result of identity fraud.
- Dark Web searches: Performing a Dark Web search — to ensure that your personally identifiable information (PII) is not compromised — is also covered.
- Replacing identification documents: The insurance company will cover the costs of replacing ID cards, driver’s licenses, and passports.
Other coverage options:
A variety of insurance providers offer different coverage options so that customers can choose the plan that best suits their needs.
Aura, for example, offers $1 million in insurance coverage per person regardless of whether the policy is for an individual, a couple, or a family.
Aura offers coverage for:
- Aggregate limit of insurance: $1,000,000 per policy period
- Lost wages: $2,000 per week, for a maximum of five weeks
- Travel expenses: $1,000 per policy period
- Eldercare, spousal care, and child care: $2,000 per policy period
- Certified public accountant costs: $1,000 per policy period
LifeLock is another popular identity theft insurance provider which offers several levels of coverage, ranging from $25,000 to $1,000,000 per year.
IdentityForce, another provider, also offers $1 million identity theft policies that cover out-of-pocket expenses and lost wages.
Note: Identity theft insurance reimburses victims for their expenses in the identity restoration process. Direct financial losses incurred as a result of the theft are not insured.
📚 Related: Aura vs. LifeLock Comparison: 2023 Showdown →
How Much Does Identity Theft Insurance Cost?
The cost of identity theft insurance isn't steep; in most cases you can add it onto your existing homeowners insurance. Providers such as Allstate and State Farm offer this option.
Costs from these insurance companies vary:
- Allstate: $9.99-$17.99 per month
- State Farm: $25 per year
- Geico: $7.99-9.99 per month
There are also companies that specialize in identity theft protection and credit monitoring (like Aura). Here’s a breakdown of their plans and pricing.
Aura
Aura offers a suite of digital security tools and identity theft protection services designed to keep customers safe online. In addition to financial fraud protection, Aura also offers online device security and identity theft insurance.
Three different plans are available, based on how many people need coverage. The $1,000,000 insurance policy per person is included with every plan.
Plans and pricing:
- Individual: $12/month billed annually or $15/month billed monthly
- Couple: $22/month billed annually or $29/month billed monthly
- Family: $37/month billed annually or $50/month billed monthly
Identity Guard
Identity Guard focuses solely on identity theft protection. Features include notifications about suspicious activity, recovery assistance, credit monitoring, and more. Each plan comes with a $1,000,000 policy.
Plans and pricing:
- Value: $7.50/month billed annually or $8.99/month billed monthly
- Total: $16.67/month billed annually or $19.99/month billed monthly
- Ultra: $25.00/month billed annually or $29.99/month billed monthly
IdentityForce
IdentityForce is another ID theft coverage provider that offers $1,000,000 insurance policies to customers alongside many other features. Access options include monitoring, alerts about new accounts, a password manager, and more.
Plans and pricing:
- UltraSecure: $17.95/month or $179.50/year
- UltraSecure + Credit: $23.95/month or $239.50/year
IDShield
IDShield covers up to $1,000,000 in expenses and legal fees for identity theft cases. Customers also have the option of working with a licensed private investigator to look into the fraud or scam — adding another layer of protection.
IDShield has three different plans, including one that protects businesses from identity thieves.
Plans and pricing:
- Individual: $14.95/month
- Family: $29.95/month
- Business: $79.95/month
PrivacyGuard
Identity theft and credit protection are both available through PrivacyGuard. Customers can choose identity protection only, credit protection only, or full protection with both options.
Plans and pricing:
- Identity Protection: $9.99/month
- Credit Protection: $19.99/month
- Total Protection: $24.99/month
Here's How To Sign Up for Identity Theft Insurance
Protecting yourself with insurance against identity theft entails four simple steps. Here is what you need to do to sign up for your preferred identity theft protection plan.
1. Find a provider
Research a few different providers and compare their offerings. Learn about each provider’s history and reputation to determine which one provides the right coverage for you and your loved ones.
Some things to consider:
- See if your homeowners insurance offers identity theft insurance. Sometimes the easiest or cheapest option can be bundling with your existing insurance.
- Check if identity theft protection is already included in your home insurance. Some insurance policies may already come with this option; if so, you don’t need to worry about signing up for anything else.
- Buy an identity theft insurance policy from a company that specializes in identity theft. Companies such as Aura provide identity theft insurance as a specialist policy, ensuring that you get the best care.
- Understand how you will interact with the company. Do they have 24/7 customer service and a robust online suite of digital security tools? Specialist providers like Aura make it simple to find and manage your insurance policy online.
2. Select a plan
As you research, take note of the amount covered by the insurance policy, what it covers, and any other perks offered before you decide on the best plan.
Some important benefits to look out for include:
- Low or no deductibles, high coverage amount
- No out-of-pocket expenses in the remediation process
- Affordable cost (no more than $15–20 per month for each person covered)
- Credit monitoring from all three major credit bureaus (Equifax, Experian, and TransUnion)
- Additional features like credit protection, data breach notifications, and restoration services
3. Sign up or request a quote
You need to sign up for a policy and make your first payment to secure a plan with most standalone identity theft insurance companies. To add the option to your existing insurance policy, you may need to reach out to your insurance broker and request a quote.
4. Get protection
With the number of identity theft cases at an all-time high (and increasing every day), comprehensive protection is more vital now than ever before. Get peace of mind with a policy that will protect you and your family from scheming identity thieves.
If you’re looking for an all-in-one security solution, Aura provides a $1,000,000 identity theft insurance policy and stands out with the following distinctions:
- The industry’s fastest fraud alerts (up to four times faster than competitors) [3]
- The highest-rated identity monitoring and protection — covering your personal information, credit cards, Social Security number (SSN), home title, bank accounts, and more [5]
- Three-bureau credit monitoring with a one-click credit lock for your Experian credit file
- Proactive identity theft protection features like a password manager and auto-updating of compromised passwords
- Device and network protection with advanced antivirus software and a military-grade virtual private network (VPN)
📚 Related: The Top 5 Credit Protection Services (How To Choose) →
How Do You File a Claim For Identity Theft Insurance?
If you fall victim to identity theft, your identity theft insurance policy will play a key role in the remediation process. The policy will include provisions to file an identity theft report, and you will work with a fraud specialist to get your credit score back on track.
Aura requires that you report fraudulent activity within 90 days of discovering it. Calling our 24/7 direct support line (833-552-2123) is all it takes for you to get started.
After that, you'll receive a claims kit that guides you through the steps you’ll need to take, including instructions and assistance for:
- Notifying all credit bureaus of the fraud
- Filing a police report with details of the fraudulent activity
- Using FTC’s Identity Theft Hotline
- Filing for specific benefits outlined in your insurance policy
What documents do you need?
Identity theft insurance policies require documentation from your financial institution that the account is fraudulent or the charges on your credit card are unlawful.
Here’s how the claims process works to obtain documentation:
- File a police report. Call your local police department to notify them about the fraud. Share a copy of your credit report after you black out items not related to identity theft. Request a copy of the police report and additional forms to solicit account information from creditors or your phone carrier.
- Send the police report to your financial institution. This proves to the company that the account is fraudulent. The security or fraud departments there will create documents that you can submit to collections departments, credit bureaus, and others to aid in your recovery.
- Send the documentation to your insurance policy provider. This documentation will also be used to access your insurance policy and its benefits, ensuring that you do not suffer any additional financial losses while repairing your credit.
How much time does fraud resolution take?
It can take between 90 days and six months to fully resolve fraudulent activity on your accounts. This is the time that it takes to file your report, send the documentation to the appropriate recipients, and wait to get the fraud removed from your credit report.
Do banks offer identity theft insurance?
While many credit card companies and banks offer some type of protection for their customers, they don’t have specified identity theft insurance policies like those offered by Aura or Allstate.
📚 Related: What Is Credit Protection? Are You Making the Most of It? →
Do You Need Identity Theft Insurance? Here’s How To Know
No one identity theft insurance policy can prevent fraud or offer full protection after the fact. However, if any of these instances apply to you, it’s time to start searching for identity theft protection:
- You feel that you and your family may be at risk.
- You’ve previously been a victim of identity theft.
- You don’t have the time to monitor your credit on your own.
- You want to protect major assets.
- You’ve already experienced a personal data breach.
With Aura, your accounts will not only be protected and monitored; you'll also have a team of experts in your corner 24/7 — safeguarding you against new threats and ready to assist you in the event of fraud.
