Identity theft shows no signs of slowing down: In 2024, there were more than 1.1 million reports of identity theft received through the Federal Trade Commission's IdentityTheft.gov website alone.
Victims of identity theft spend an average of $1,200 to restore their identity. But credit monitoring or identity theft protection with identity theft insurance can help you recoup legal fees, lost wages and other expenses.
Identity theft insurance
What is identity theft insurance?
If your identity is stolen, it will take time, resources and money to reclaim it. Identity theft insurance can reimburse you for out-of-pocket expenses related to restoring your identity, from replacing lost or stolen ID to paying for lawyers to help restore your credit.
Most identity theft insurance policies don't cover stolen money or financial losses from unauthorized use of credit accounts or other fraud.
How do I get identity theft insurance?
Most insurance companies offer identity theft coverage as part of a homeowners policies or as riders, though they typically don't include reimbursement for money or other assets taken by scammers.
Nationwide's standard homeowners policies include up to $25,000 in coverage for expenses relating to restoring your identity, with an option to increase that to $100,000.
Nationwide Homeowners Insurance
Cost
The best way to estimate your costs is to request a quote
Maximum coverage
Not disclosed
App available
Yes
Policy highlights
Policy covers home and property damages caused by theft, fire and weather damage. It also covers personal liability, loss of use and unauthorized transactions on your credit card
Does not cover
Water damage, earthquakes, flood insurance, identity theft, high-value items, rebuilding home after loss (these can all be purchased as add-ons for extra coverage)
Terms apply.
State Farm offers an add-on with its homeowner policies that includes coverage for fraud losses, identity restoration, cyberattacks and cyber extortion.
State Farm Homeowners Insurance
Cost
The best way to estimate your costs is to request a quote
Maximum coverage
Not disclosed
App available
Yes
Policy highlights
State Farm's homeowners insurance offers coverage that's easy to bundle with other types of insurance and covers things like fire, theft or vandalism. It offers several discounts for home security systems and wind mitigation.
Does not cover
Business or professional services, damage from flooding or underground water, earthquakes or mudslides, settling or deterioration, and animals, birds or insects.
Identity theft insurance can also be bought on its own: Amica's identity theft insurance pays up to $15,000 for legal fees, lost wages and more. USAA offers personal cyber insurance that covers identity theft and provides up to $50,000 in coverage.
Amica Homeowners Insurance
Coverage
Dwelling, other structures, personal property, additional living expenses, personal liability and medical payments.
Policy highlights
Amica's Platinum Choice plan comes with 130% dwelling coverage, increased valuable coverage and higher limits for liability and medical payments.
Add-ons
Dwelling and property replacement, coverage for computers, identity fraud, water backup and home businesses
Bundling discount
Up to 30% when you combine auto, home and life insurance
Availability
Amica offers homeowners insurance in all U.S. states except Alaska and Hawaii.
USAA Homeowners Insurance
Cost
The best way to estimate your costs is to request a quote
Maximum coverage
Not disclosed
App available
Yes
Policy highlights
Policy covers most weather-related damages, theft, vandalism, sudden and accidental water damage and mold. Also covers personal liability, personal belongings, dwelling and other structures and loss of use
Does not cover
Flood insurance, water damage and mold that has built up slowly over time, high-value personal items
Terms apply.
Identity theft protection services also usually include some form of insurance: Experian IdentityWorks℠ Premium covers $1 million in out-of-pocket expenses, along with access to a dedicated team of fraud resolution specialists.
Aura also includes $1 million in identity theft insurance, which can be used to recoup eligible losses and legal fees, as well as lost wages and childcare costs while you resolve the issue.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Plans from $10 to $32 per month, billed annually
Protects against identity theft, fraud, spam calls and websites, viruses and malware. Offers three-credit-bureau monitoring, VPN, dark web monitoring, password manager, email aliases and instant credit lock.
On Aura's site
From $7.50 to $25.00 per month, billed annually on individual plans and $12.50 to $33.33 per month, billed annually on family plans
Up to $1 million in insurance for eligible losses from identity theft
On Identity Guard's site
Some credit card companies also include identity theft insurance: The CreditSecure™ program from American Express reimburses cardholders up to $1 million for out-of-pocket expenses associated with restoring their identity. There is a monthly $19.99 charge, though first-time customers only pay $1 for the first month.
For an added fee, Discover® cardholders can get a reimbursement of up to $1 million with no deductible for stolen funds, legal expenses and other costs. The Discover® Identity Theft Protection plan also alerts customers to changes in their credit reports and bank accounts and if their information appears on the dark web.
What does identity theft insurance cover?
Specifics vary by company, but identity theft insurance generally reimburses costs associated with the recovery process.
- Costs of replacing your driver's license, Social Security card and other ID
- Lost wages
- Legal fees
- Notary and mailing fees
- Bank fees stemming from fraudulent financial activity
- Cost of identity restoration specialists
Identity theft insurance typically does not cover direct monetary losses associated with identity theft, including stolen cash, fraudulent purchases or other unauthorized use of credit accounts.
The Fair Credit Billing Act caps losses from unauthorized use of your credit card at $50, but most card issuers have zero liability policies for fraudulent charges.
Even the best identity theft insurance can't protect you from becoming a victim of identity theft. For that, you'll want to look into an identity theft protection service, which monitors the use of your personal information, or a credit monitoring program, which can alert you to changes to your credit report, including hard inquiries and new accounts.
How much does identity theft insurance cost?
The price of identity theft insurance depends on how you obtain coverage: A standalone typically costs between $25 and $60 a year, but the cost of a full identity protection service that includes credit reports and other features can be significantly more.
Identity theft insurance FAQs
What does identity theft insurance cover?
Identity theft insurance typically covers out-of-pocket expenses associated with restoring your identity, including legal fees, lost wages and resolution specialists.
How much is identity theft insurance?
The cost varies by policy, but standalone identity theft insurance typically costs between $25 and $60 a year.
Is identity theft insurance worth it?
In 2024, Americans reported more than a 1.1 million cases of identity theft. While insurance won't reimburse you for direct monetary loss it can cover the expenses associated with getting your identity back.
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