Discovering that someone has stolen your identity can be incredibly upsetting, as this is not only a massive violation of your privacy, but it can also decimate your credit. As such, you may wonder if investing in identity theft insurance for the future is something worthwhile. However, if you’re interested in this option, it’s imperative to understand how this kind of coverage works. As such, the following blog explores what you should know before purchasing identity theft insurance, as well as the importance of working with Michigan identity theft lawyers to help you navigate the recovery process.
What Impact Can Identity Theft Have on My Life?
When your identity is compromised, it can be incredibly overwhelming. Generally, the most considerable impact that identity theft can have is on your credit score. When someone opens an account in your name or makes purchases, the debt they’ve incurred will continue to accumulate. As such, each missed payment can decrease your credit score, leaving you unable to obtain loans and incurring astronomical interest rates.
Not only can this impact you financially, but you may also face emotional repercussions as a result of the stress associated with this theft. Unfortunately, this can lead to a considerable amount of anxiety, as the idea of missing money and looming lawsuits can take a toll on both your mental and physical health. In some instances, if the stress continues to accumulate, you can suffer cardiac events as a result.
Is Identity Theft Insurance Worth the Investment?
If you are considering investing in identity theft insurance, it’s critical to understand how this coverage works. While typical insurance, like auto or health policies, helps reimburse the costs you’ve incurred, identity theft insurance functions differently. As such, you will not be compensated for the actual financial damages you’ve experienced as a direct result of the theft, like money taken from your account or the cost of fraudulent purchases. Instead, this coverage helps cover the costs associated with the recovery process.
For example, your policy can help cover costs associated with legal fees, the cost of replacing important documents, and any fees charged by your bank as a result of the fraudulent activity on your account.
While you can purchase a separate identity theft insurance policy, this is often included as an add-on to your homeowner’s or renter’s insurance.
It’s no secret that identity theft can run take a serious toll on your life. That is why it is imperative to connect with an experienced attorney with Lyngklip & Associates as soon as possible if you discover your identity has been compromised. Our dedicated legal team can assist you through these difficult times to help you in the fight for the best possible outcome for your circumstances. Connect with us today to learn more.
