Identity theft insurance is a specialized coverage designed to help you recover after someone steals your personal information. Rather than preventing the theft itself, it focuses on reimbursing the costs associated with the often lengthy and complex restoration process.

It is critical to note that . In most cases, banks and credit card companies are legally responsible for reimbursing unauthorized transactions if reported promptly. However, some "comprehensive" identity theft protection plans (which bundle insurance with monitoring) may offer limited reimbursement for stolen cash. Is It Worth the Cost?

Deciding whether to buy depends on your existing coverage and your risk level. What Is Identity Theft Insurance? | Equifax