KCAL Insurance Agency
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Why ID theft insurance might not be worth it
With so many people worried about identity theft, this insurance is hot right now.
The majority of these cases involve a stolen credit card number. Some people are willing to pay a few dollars a month to buy peace of mind. Coverage typically costs from $20 to $100 a year. The National Association of Insurance Commissioners cautions consumers that insurance 'cannot protect you from becoming a victim of identity theft and does not cover direct monetary losses incurred as a result of identity theft.'It simply covers some of the expenses you will incur to deal with the problem, such as the costs of making phone calls and copies, mailing documents and so on. Whether or not you have ID theft insurance, there are few simple things everyone should do: To get a free copy of your credit file, use this site: http://www.annualcreditreport.com/ . It was set up by the federal government for this purpose. Closing a credit account will never boost your credit score and may lower it. But if you have a high credit score and only close a single account,the impact on your credit score should be relatively minor. TransUnion (one of the three big credit reporting agencies) advises consumers to keep four to six credit accounts open. One more thing. If you are going to close an account, the best way to do that is to send a certified letter to the credit card issuer.
Source:Msnbc