Identity fraud cost consumers $16.9 billion in 2019—here's how identity theft insurance can help

Identity theft can be a big headache to fix — and if you leave it unresolved for too long, it can be expensive to resolve. In fact, identity fraud cost consumers $16.9 billion in 2019, according to the 2020 Identity Fraud Study by Javelin Strategy and Research.

If you're worried about how you could be impacted if someone steals your identity, you can be proactive and sign up for a credit monitoring or identity theft service. Many of these services offer insurance, which can help you resolve and recoup any expenses resulting from identity theft.

Here’s a breakdown of what identity theft insurance covers, plus where you can find it.

Identity theft insurance is a common feature of identity theft protection services. However, the exact amount of reimbursement you'll receive and the types of expenses that are covered vary by service.

Many services that Select reviewed offer coverage ranging from $500,000 to $1 million. Of course, the more coverage the better, but you'll often pay a higher membership fee for services with $1 million identity theft insurance plans.

For example, Experian IdentityWorks℠ Plus offers coverage of up to $500,000 and costs $9.99 to $24.99 per month, depending on the plan. Experian IdentityWorks℠ Premium offers $1 million in coverage but costs more: $19.99 to $29.99 per month, depending on the plan. Ultimately, you'll need to decide if you want to pay a higher monthly fee in order to receive more insurance coverage.

Beyond the dollar amount of insurance, you'll need to read the fine print to see what expenses are eligible for reimbursement. Common out-of-pocket expenses that are covered include legal fees, lost wages and other expenses (like mailing costs, phone bills and notary fees, etc.) that are associated with resolving identity theft. This insurance typically doesn't provide coverage for any stolen money or financial loss.

We reviewed dozens of credit monitoring and identity theft protection services that safeguard your information and provide insurance. The best services offer up to $1 million for eligible expenses associated with resolving and restoring your identity.

Here are the best identity theft protection services:

• Best overall: IdentityForce®
• Runner-up: PrivacyGuard™
• Best for credit monitoring: Experian IdentityWorks℠
• Best for identity theft insurance: Identity Guard
• Best for computer and device protection: LifeLock®

To learn more about IdentityForce®, visit their website or call 855-979-1118.