I was watching television tonight and saw an Allstate ad talking about identity theft insurance. Identity theft is a problem. No question about it. But insurance for identity theft?
The basic premise is that the insurance company will provide you counseling if you are a victim of identity theft and they will call the major credit bureaus to report it for you. The Hartford Courant had an interesting article on this insurance. The Institute of Consumer Financial Education, a nonprofit in San Diego, this identity theft is a bad idea.
Personally, I agree. I have known some people who have been victims. Its a pain, and it takes some time to fix it, but its not something that people should buy insurance to cover. If your policy covers it, great. But do not spend the extra premium on it.