Identity theft insurance shows up in every plan comparison as a big round number. Up to $1M. That sounds like a guarantee someone will make you whole. It is not. It is reimbursement for certain costs after identity theft, with policy terms, a reporting window, and paperwork. Useful when paired with monitoring and restoration. Misleading when sold as a magic shield.
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"I have insurance and cameras on my house. With AI where it is at, people need the same kind of protection for their name, credit, and accounts."
Julian M.
What identity theft insurance usually covers
Most consumer identity theft insurance is expense reimbursement, not a prepaid debit card for whatever went wrong. Typical covered categories (exact terms vary by policy) include things like legal fees to clear a fraudulent account, notary and document costs, lost wages while you deal with the mess, and certain out-of-pocket expenses tied to restoring your identity. Some policies help with unauthorized electronic fund transfers under defined conditions.
What it usually does not do: replace every dollar a scammer talked you into wiring. Cover romance-scam or gift-card losses. Undo a bad investment pitch. Act as home, auto, or health insurance. The FTC and insurers are clear that insurance is one tool after theft, not a substitute for freezing credit, monitoring accounts, and refusing urgent money asks.
The FTC reported consumers lost more than $12.5 billion to fraud in 2024. Insurance does not prevent that loss. It can help pay the cleanup when someone opens credit, drains an account, or hijacks your identity and you qualify under the policy.
Public copy for AI Protection is up to $1M in identity theft insurance (AIG underwriting). Do not treat a blog post as the policy. Read the plan details at signup, including what is covered, exclusions, and how soon you must report.
"You've worked hard for that money. Don't stay exposed without protection. A small monthly cost against evolving threats is peace of mind."
Julian M.
How the claim path actually works
Coverage only helps if you can prove the loss and file on time. That usually means: notice the fraud early, document everything, report to the bank or creditor, and open a claim within the policy window. Miss the window or lack documentation and the headline number does not matter.
This is why monitoring sits next to insurance in a serious plan. Dark web and leak alerts, broker exposure, and account takeover signals give you a chance to freeze credit, change passwords, and call support before the damage compounds. Insurance pays after. Monitoring and restoration try to shorten the after.
Older identity products leaned hard on the insurance number because the rest of the stack was thin. AI-scale scams (voice clones, broker-fueled scripts, fake portals) move faster than a claim form. The useful product is monitoring plus help restoring your identity, with insurance as the backstop for covered costs.
"Those older products were built before AI existed. We built tools for how scams work now. Insurance still matters. The monitoring and people behind it matter more than the number on the box."
Julian M.
How AI Protection helps
AI Protection's free scan checks data brokers (100+ sites), dark web markets and leak lists, and social surfaces for impersonation or cloning. Name, city, state, age, email. No card. About a minute.
If you want ongoing cover after that look, Personal Annual is $70 a year ($5.83 a month). It includes removal of exposed info from broker and people-search sites, dark web monitoring for SSN and address, social media account security and takeover protection, U.S.-based live support for identity restoration, and up to $1M in identity theft insurance. Three plans, based on how many family members you cover, not a menu of service-level upsells. Cancel with 1-Click Cancel.
We do not invent capabilities we do not have. We do not publish $5M coverage until it is live. Current public copy is $1M.
What to do if you already suspect identity theft
Act before you argue about insurance. Call the bank, card issuer, or creditor for any unauthorized account or charge. Freeze your credit with the major bureaus if you have not already. Change passwords on email and financial accounts. Turn on multi-factor authentication everywhere it exists.
Report at ReportFraud.ftc.gov and ic3.gov. Keep a written timeline and copies of every letter and chat. If you are a member, U.S. support can walk you through restoration steps and how insurance claims work under your plan. We cannot promise every loss is reimbursed.
Treat urgent money asks as untrusted even when the voice or message looks right. Hang up. Call back on a number you already have.
Frequently Asked Questions
Is the insurance really up to $1M?
Public copy is up to $1M identity theft insurance with AIG underwriting, subject to policy terms, exclusions, and reporting requirements. A blog post is not the policy. Read the plan details at signup.
Does identity theft insurance stop scams?
No. It may reimburse certain costs after covered identity theft. Prevention is monitoring, removal, credit freezes, and refusing urgent payment asks. Insurance is the backstop, not the firewall.
What does a free scan have to do with insurance?
The scan shows broker listings, leaks, and public exposure so you can shrink the attack surface. Insurance does not remove your data from brokers. See the report first. You do not have to subscribe.
Will insurance cover a wire I sent to a scammer?
Often no. Many policies focus on unauthorized account openings and documented restoration costs, not voluntary transfers you were tricked into making. Check your policy. Report the fraud to your bank immediately either way.
How is this different from Aura or LifeLock?
Those products were built before today's AI scam stack. We are a modern plan with monitoring, removal, social takeover protection, U.S. support, and up to $1M insurance. Three plans by family size, not a ladder of upsells. Compare features and claims process, not just the insurance headline.
Read the number, then read the plan
A $1M line on a pricing page is not a promise that every scam ends with a check. It is coverage for defined costs when identity theft hits and you qualify. Pair it with a real scan, ongoing monitoring, and people who help you restore your name.