Identity theft insurance isn’t worth forking out for
When I see an advert for a card protection policy it goes straight in the bin. In my mind, there are much better things to spend £70 on than a policy I already get for free and which I’m unlikely to need to claim on.
The fact is – identity theft is actually pretty rare. Providers will play on our fears of being a victim, but in reality, actual cases amount to probably less than 0.5% of the adult population each year.
Of course, if you’re unlucky enough to become a victim of ID theft it can be very distressing and a right pain to sort out. But the solution probably doesn’t lie in one of these policies.
You can get most of the benefits for free
Lots of the so-called ‘benefits’ these policies offer can also be done cheaper or for free yourself, or aren’t worth shelling out for in the first place.
For instance, keeping an eye on your credit file is easily done and you won’t have to pay £70 for the privilege. Just pay £2 to each of the three credit reference agencies and you’ll get your statutory credit report in return.
This is just one of the five reasons why you don’t need identity theft insurance highlighted by new research from the Which? Money team. You also don’t really need to pay for £100,000 fraud cover, impressive though it may sound, as you get free cover under the Banking Conduct of Business Rules and the Lending Code.
Simple actions to protect yourself
And of course, there are lots you can do yourself to minimise the chance of becoming a victim in the first place. Simple things like; taking care of your personal information, not telling anyone your passwords or PINs, and never, ever responding to unsolicited emails or calls asking for your bank details.
These tips should all help ensure that the only person who ever uses your personal details for their own financial gain, is you.
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