Four Reasons Not to Get Identity Theft Insurance (and Why You Shouldn’t Listen to Them)
July 12, 2019
Picture this: it’s payday. Time to take care of those pesky bills! You log into your account and what’s this? Raptors tickets? A new flatscreen TV? Either you’ve been doing some serious sleep spending or you’re a victim of identity theft.
Identity theft almost always leads to fraud and can range from bogus credit card charges and benefits claims, to major data breaches, impersonation, and, in the most extreme cases, espionage, organized crime, and terrorism.
We know—that sounds pretty dramatic. But whatever the crime, the impact to your reputation could be devastating and send you spiralling into a financial mess. That’s where identity theft insurance comes in. Skeptical? You’re not alone. Here are the top four reasons people opt out of identity theft insurance—and why you shouldn’t listen to them.
1. “My bank will reimburse me.”
Sure, your financial institution might cover your losses. But they won’t reimburse you for any extra out-of-pocket expenses incurred as a result of the theft like: legal, consulting, or administrative fees, lost wages from time off work, or childcare and/or eldercare. Insurance can take care of that.
2. “I don’t need it.”
In an increasingly digital age, the threat of identity theft is everywhere. Fraudsters no longer need your credit card, laptop, or a well-timed virus to get your personal information. A name–maybe an address–and some internet access will do the trick. You could even be exposed to attack through your day-to-day online activity. Cloud-based software, social media, unsecured public Wi-Fi—you name it!
3. “There are tons of free protections out there so why pay for additional insurance?”
Credit freezes, reports, monitoring—financial institutions nowadays seem to have it all. But they aren’t always working in your best interest. They may not even realize that there is a breach or, worse, they’ll try to cover it up. It could be weeks before you’re notified and have a chance to do anything about it.
4. “It’s too expensive.”
Luckily, PROLINK can negotiate with your insurer to add on identity theft coverage as a rider or endorsement to an existing homeowner’s policy for a fraction of the cost of a standalone policy.
It’s not enough to keep a watchful eye over your bank statements. Or update your firewall settings anymore. Your identity could be stolen no matter how careful you are; and, depending on the damage, it might take anywhere from days to months to even years to get back to pre-theft status.
At the end of the day, nothing will ever really protect you from a breach. But insurance can help you recover. With over 40 years in the business, we’ve seen it all. PROLINK—Canada’s Insurance Connection can provide you with the support you need to successfully manage the chaos of getting your life back in order.
PROLINK’s blog posts are general in nature. They do not take into account your personal objectives or financial situation and are not a substitute for professional advice. The specific terms of your policy will always apply. We bear no responsibility for the accuracy, legality, or timeliness of any external content.