There is absolutely no question that Identity theft is on the rise and rising considerably with the help of Internet and criminal tech savvy. But taking good and normal care of your personal information can considerably reduce the odds of you becoming the victim of Identity Theft. The most disturbing fact remains that in half of the cases reported to the FTC the thief was know to the victim and it was a family member in most cases and sometimes an estranged one.

Identity theft insurance is now available and although it will not prevent one from being a victim, it will help one recover from the many losses associated with being an identity theft victim. Identity Theft Insurance offers reimbursement to victims in the form of expenses incurred repairing their credit report, recovering lost wages, phone bills, mailing costs, and attorney fees depending on the policy chosen.

There are certain insurance companies that offer Identity Theft Insurance.

Although these policies do not cover up all the losses, but they certainly cover up the portion of lost wages for time spent dealing with the theft, mailing and other costs associated with filing paperwork to correct the problem, loan re-application fees, phone charges and even some attorney fees.

Identity theft insurance is the fastest-growing insurance product. Credit card companies, banks and stock brokers usually cover direct losses from identity theft. The main danger stems from the fact that your credit rating is hurt for ever and there is no insurance against the loss and grief suffered by the victim due to identity theft.

In case your house is damaged or you car is involved in a accident, the insurance company pay for all the repair charges. But most often than not you are completely indemnified against all the losses occurred. But Identity theft insurance doesn't fix your credit rating or clean up the criminal record against your name due to the deeds of the identity thief. Identity theft insurance can only pay for the expenses associated with the time-consuming and often frustrating tasks of clear your name and restoring some credit back to your name. The FTC estimates the average expenses for clearing up at $1000 which are mainly for incidentals such as certified mail, notary seals and phone calls. And these tend to add up fast when a few dozen unauthorized accounts have been opened.

Identity theft insurance pays you mainly "for lost wages for time taken from work" but these count for nothing when compared to the losses suffered by the victim. A common Identity theft insurance will at the most pay you $2000. In addition, workloads and job security can make it tough to take unpaid leave to handle ID theft.

The balance payment is usually $5000 to $15000 is available for legal fees to undo judgments and criminal records racked up by identity thieves in your name. But FTC statistics show that just 16% of identity theft victims suffer such problems, and only 40% report out-of-pocket costs greater than $1,000.

Just be sure to recognize that the Identity theft insurance won't spare you the major hassle of recovering your identity. The best Identity theft insurance against that is prevention.