Do you need more protection?

Angie’s List takes a closer look at identity theft insurance policies

Identity theft topped the Federal Trade Commission’s (FTC) recently released Annual List of Consumer Complaints for the seventh straight year. As a result of this increasingly common crime, many are taking advantage of separate identity theft insurance policies. But, do these policies, which range from $25 to $100 per year, really offer more protection than consumers already have?

“It’s really a question of what you’re looking for,” says Angie Hicks, founder of Angie’s List. “In many cases consumers have a significant amount of protection through their bank or their credit cards. But, there are consumers who feel it’s worth paying for the extra insurance policy for added protection and assistance, in case they do become a victim.”

Advocates say one advantage is that policy holders are quickly put in touch with experts to help restore your credit, save you hours of labor, hundreds of dollars and provide personal counselors to help get you back on your feet. Others say, however, that the policy can be misleading in that it doesn’t protect you from becoming a victim and that consumers are already protected in a number of ways.

With that in mind, Angie’s List took a closer look to give consumers a little more information on these polices and help them weigh their options.

When considering an identity theft insurance policy:

·       Find out how you are already protected by checking with your bank and credit card companies to help you determine whether you need more protection.

·       Know what the plan includes. Ask about the availability of services, such as:

-       Assistance in locating any other fraudulent accounts

-       Placing “fraud alerts” on your accounts

-       Filing reports with the Federal Trade Commission

-       Notifying credit-reporting agencies and creditors on your behalf

-       Help with replacing credit cards and identity documents

-       Forwarding you cash if you are away from home while the theft occurs

·       Be wary of companies you are unfamiliar with. Make sure you are dealing with a reputable insurance organization.

·       Look for a policy with a low deductible, and one that reimburses for lost wages, attorney fees and the cost of denied credit, such as removing negative items from your credit report.

Where to get identity theft insurance:

·       Home Owners or Renters Insurance. Some companies offer it as a part of a standard insurance policy, while others offer it as an add-on.

·       Stand-Alone Policy. Some major insurers allow customers to buy a separate identity theft policy.

·       Banks/Credit Card Companies. Some credit card companies will provide member banks with identity theft insurance as an additional benefit for cardholders.

·       Credit Bureaus. Credit protection services such as credit monitoring can notify you when there is an unusual change in any of your accounts.

Protecting yourself:

·       Guard your Social Security Number. It is the key to your credit reports and banking accounts. Don’t have it printed on your checks or driver’s license.

·       Destroy old bank, credit card statements and junk mail credit card offers with a shredder.

·       Do not carry extra credit cards or important identity documents except when needed.

·       Photocopy the contents of your wallet including both sides of your license and credit cards so you have all the account numbers, expiration dates and phone numbers if your wallet or purse is stolen.

·       Examine the charges on your credit card statements before paying them, and check your bank accounts online daily to catch any suspicious activity.

·       Cancel unused credit card accounts.

·       Never give your credit card number or personal information over the phone unless you have initiated the call and trust that business.

·       Avoid having your debit card linked to your savings account and don’t keep large amounts of money in your checking account, so it’s less likely a thief can also drain your savings account if you’re debit card is stolen.

·       Use credit cards that provide consumers with zero liability in case of identity theft, which covers all their cardholders at no extra charge, as long as the purchase was made on the Visa system.

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Angie’s List is where consumers turn to get the real scoop on local contractors and companies in more than 250 different categories. Currently, more than 500,000 consumers across the U.S. rely on Angie’s List to help them find the right contractor or company for the job they need done. Members have unlimited access to the list via Internet or phone; receive the Angie’s List magazine, which includes articles on home improvement and maintenance, consumer trends and scam alerts; and they can utilize the Angie’s List complaint resolution service. Get more information and consumer tips at www.angieslist.com.

To book Angie Hicks, the founder of Angie's List, contact Jordan Tandy at jordant@angieslist.com or (317)396-9143.

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