Identity theft insurance is basically protection to cover certain costs associated with repairing credit. Identity theft insurance includes lost wages, notary fees, legal costs, long distance phone calls and postage. Some deductibles usually may apply. Identity theft victims can use funds from their identity theft insurance to restore their identity and fix damaged credit reports.

Some firms now offer identity theft insurance as part of their homeowner's insurance policy. Other companies sell identity theft security either as an endorsement to renter's or homeowner's insurance policy, through credit card companies or as a stand-alone policy. Identity theft insurance policies can cost anywhere between $25 and $50 for $15,000 to $25,000 worth of coverage.

Criminals know it's easier now than anytime in the past to steal and assume someone else's identity because of computers and better access to public information. With Internet banking and shopping fast becoming more commonplace, thieves looking to steal another person's identity have an even quicker way of doing it.

Here's the frustrating part. While identity theft is considered the fastest growing crime today, the laws prosecuting identity theft criminals are still evolving. Identity theft victims are often victimized TWICE. First with their identity stolen and second, by being unable to take full legal action on the guilty parties.

With the risk of identity theft lurking in every corner, people need to take steps to guard against it. And although identity theft insurance won't prevent you from being a victim, it will be extremely useful in helping you recover from the many losses associated with being a victim of such a crime.

The decision to have ID theft insurance is a personal choice. Sit down, have a chat with your agent and get into the nitty-gritty of the identity theft policy. Find out what the identity theft insurance will cover and what it won't. From there, you'll be able to make a more informed decision.