Identity Theft Protection vs. Car Insurance: Why Both Matter
You don’t think twice about protecting your shiny car, and in most states, you don’t have a say. But there’s another kind of insurance worth considering: identity theft protection.
You don’t think twice about protecting your shiny car, and in most states, you don’t have a say. But there’s another kind of insurance worth considering: identity theft protection. With financial fraud on the rise, many employers, banks, and institutions are even looking into making it a standard benefit.
Let’s break it down.
Car Insurance: A Familiar Expense¹
- Average annual premium: $2,543 for full coverage (≈ $212/month)
- Average collision claim cost: $3,588
- Required by law in nearly every state
People pay for car insurance because it’s required and because the cost of not having it could be devastating. But…
Identity Theft: A Bigger, Growing Threat
- Total financial losses in 2024: $47 billion
- Frequency: A new identity fraud case occurs every 22 seconds in the U.S.²
- Average individual loss: Approximately $500
- Rising incidents: Nearly 1 in 4 U.S. adults were victims of identity fraud or scams in 2023.
Despite affecting millions more people than car accidents, identity theft protection is not yet a requirement, although many argue it should be.
Comparison at a Glance
Monthly Cost
- Car Insurance: $100–$200/month³
- Identity Theft Protection: $10–$30/month
Mandatory?
- Car Insurance: Yes (in most states)
- Identity Theft Protection: No (but highly recommended)
What It Protects
- Car Insurance: Vehicle and legal liability
- Identity Theft Protection: Personal identity, credit, and finances
Typical Recovery
- Car Insurance: Claims and repair shops
- Identity Theft Protection: Fraud specialists, and legal and financial support
Why Identity Protection Is Critical
Think about it: You insure your car, a depreciating asset. Why not insure your identity, an asset that affects:
- Your housing opportunities
- Your ability to get a loan
- Your interest rates
- Your employment potential
When compromised, your personal data (such as your name, Social Security number, and credit) can be used to take out fraudulent loans, open credit cards, drain accounts, and even commit crimes in your name.
What to Look for in a Good Identity Theft Protection Plan
- Comprehensive Monitoring: One that includes your SSN, address, email, bank accounts, and phone number, not just your credit report.
- Insurance Coverage: A strong plan includes reimbursement for stolen funds and costs associated with recovering your identity and reputation.
- Expert Help: Like roadside assistance after a crash, you need educational guidance. Look for plans offering fraud resolution specialists to help with everything from freezing credit to contacting financial institutions.
What You Get with MSA’s Identity Theft Protection
My Secure Advantage (MSA) offers:
- Credit and Identity Monitoring: Real-time alerts for suspicious activity involving your personal info.
- Risk Score Tool: Know where you stand and how vulnerable you might be.
- Resolution Support: Get one-on-one help from a Money Coach.
Protect your identity the way you protect your vehicle. Schedule a session with a Money Coach today.
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¹ Fox Business, 1 Feb. 2024. Car insurance rates jump 26% across US in 2023, with more hikes likely in 2024. foxbusiness.com/economy/car-insurance-rates-2024-jump-26-across-us-report-says
² IdentityTheft.org, 2024. Identity theft statistics and trends. identitytheft.org/statistics/
³ ValuePenguin, 2024. The State of Auto Insurance 2024. valuepenguin.com/state-of-auto-insurance-2024
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