November 17, 2021

Is identity theft insurance worth the money?

Q. Is identity theft insurance worth the money? My kids are asking me if it is a scam.

— Mom

A. With all the data breaches we’ve seen, identity theft is a real risk for just about everyone.

We can understand why people might want the added safety promised by identity theft insurance, but it’s not that simple.

In most cases, identity theft insurance is not worth the cost, said Mitchell Feather of Creative Associates, a Madison-based cybersecurity and infrastructure consulting firm.

He looked at the options.

“You might find that your homeowner’s insurance offers low-cost identity theft insurance as a rider,” he said. “However, if you did go to make a claim, you could face policy deductibles and the possibility of a strike against you by the insurance company for making a claim.”

In the long run, he said the identity theft insurance could cost you more than your financial loss.

While there are many types of identity theft, the…

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