Although the cost of this insurance protection seems reasonable, the benefits are usually very limited and typically not worth the money, according to the editors of Consumer Reports magazine.
The National Association of Insurance Commissioners advises consumers that insurance cannot protect you from becoming a victim of identity theft and does not cover monetary losses incurred as a result of identity theft.
What the insurance does cover is some the expenses incurred to deal with the problem of identity theft, such as costs of making phone calls and copies of documents and some attorney fees.
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