Is identity theft insurance worth it?

Written byMichael Pedley

Reviewed byAna Jovanovic

Edited byMagdalena Madej

November 11, 20268 min read

Identity theft insurance is worth having because recovering from identity theft can be expensive. Correcting credit reports, disputing accounts opened in someone else’s name, and replacing ID documents might involve legal fees, time off work, and other out-of-pocket costs.

ExpressVPN includes ID Theft Insurance* with Advanced and Express Pro subscriptions for U.S. customers. It’s part of Identity Defender, ExpressVPN’s identity protection suite, which subscribers can access through the Identity Defender app or the ExpressVPN+ dashboard.

What does ExpressVPN's identity theft insurance cover?

ExpressVPN’s ID Theft Insurance* covers up to $3 million with Advanced and up to $5 million with Express Pro per 12-month period. Apart from the limit, the coverage is the same on both tiers. It reimburses eligible expenses and stolen funds resulting from fraud or embezzlement, theft, forgery, a data breach, or the theft or misuse of someone’s name, Social Security number (SSN), or other identifying information. The incident must occur during an active subscription.

Identity recovery expenses

Recovering from identity theft can involve correcting records, disputing fraudulent accounts, and replacing ID documents. ExpressVPN’s ID Theft Insurance* reimburses eligible costs for:

• Reapplying for loans, grants, or other credit that was rejected solely because the lender received incorrect information caused by identity fraud.
• Notarizing affidavits or similar documents, long-distance phone calls, postage, and travel to report identity fraud or correct records.
• Up to six credit reports from established credit bureaus (no more than two from any one bureau) dated within 12 months of discovering the identity fraud, and the costs of disputing inaccurate information on a credit report.
• Credit freezes and thaws, transcripts, appeal bonds, court filing fees, courier fees, and expert witness fees.
• Lost base wages for time taken off work to correct records, within 12 months of discovering the identity fraud.
• Child or elder care costs that wouldn’t otherwise have been incurred, resulting from time spent correcting records.
• Ordering medical records to correct them.
• Replacing ID cards, driver’s licenses, and passports.
• Private investigators and certified public accountants (CPAs) hired to correct records, up to $125 per hour. The insurer can choose them, and using a different one requires the insurer’s prior written consent.
• Attorney fees and court costs, up to $125 per hour and with the insurer’s consent, for defending creditor lawsuits, removing wrongful judgments, correcting credit, medical, or tax records, and defending criminal charges once the member is cleared.

Each expense must result directly from a covered identity theft incident and meet the policy’s terms and conditions.

For example, if identity theft leads to incorrect information on a credit report, the costs of ordering extra credit reports, hiring an attorney to challenge the information, and taking time off work to correct it may qualify for reimbursement.

Cash recovery for stolen funds

ExpressVPN’s ID Theft Insurance* can also reimburse money stolen through unauthorized electronic transfers. This is split into two benefits, each with a limit of up to $1 million:

• Cash Recovery: Covers funds removed from the member’s smartphone or personal financial accounts, such as checking, savings, money market, and credit card accounts. It also covers credit, prepaid, and debit card deductibles.
• Investment & Health Savings Accounts Cash Recovery: Covers funds removed from retirement, investment, and health accounts, such as individual retirement accounts (IRAs), 401(k)s, health savings accounts (HSAs), and taxable brokerage accounts.

Both benefits cover only funds, not including interest, that were lost through fraud, embezzlement, theft, forgery, or a data breach and can’t be recovered. Business accounts aren’t covered. Both benefits come with these conditions:

• Bank reimbursement first: The member must first seek reimbursement from the bank or account provider. Funds reimbursed from any other source aren’t covered.
• Proof from the financial institution: The member must provide documentation confirming the funds were fraudulently removed and can’t be recovered.
• Reporting window: The loss must be reported within 90 days of discovery.

For example, if an unauthorized transfer drains a checking account and the bank refunds only part of the money, Cash Recovery may reimburse the rest.

Each benefit is limited to one occurrence within any 12 consecutive months. Both are part of the overall $3 million or $5 million limit, not in addition to it.

Exclusions and limitations

ExpressVPN’s ID Theft Insurance* doesn’t cover:

• Losses from fraudulent, dishonest, or criminal acts by the insured person, an immediate family member, or anyone acting with them.
• Losses from errors or omissions when entering or processing data in computer systems.
• Losses from voluntarily handing over an access device, such as a card, PIN, password, or personal check.
• Unintentional clerical errors by a financial institution or its employees. Fraud by an employee acting without the employer’s permission is still covered.
• Pre-authorized transfers to a financial institution or between the member’s own accounts.
• Indirect or consequential losses.
• Income the member never earned.
• Identity fraud discovered before the policy’s effective date, or losses that occur while the subscription isn’t active and paid.
• Losses related to the insured person’s business activities.
• Loss of valuable papers, jewelry, and other personal property.
• Property damage, bodily injury, or personal injury.
• Losses from an investment or financial product losing value.
• Gambling losses.

For stolen funds, the insurance* also doesn’t cover transfers of cryptocurrency or any other currency not regulated by a government agency. Transfers from investment and health savings accounts are also excluded if the insured person has online access and hasn’t turned on two-factor authentication (2FA) or other authentication the financial institution offers, or if the institution doesn’t require authentication. The same applies when a transfer happens because the insured person or the institution didn’t follow standard steps for verifying transfer instructions.

How does ExpressVPN's identity theft insurance* work?

ExpressVPN’s ID Theft Insurance* is underwritten and administered by American Bankers Insurance Company of Florida, an Assurant company, which handles all claims.

To use it, U.S. customers first need an Advanced or Express Pro subscription. They then set up Identity Defender in the Identity Defender app or the ExpressVPN+ dashboard by entering their personal information.

Once their identity is confirmed, subscribers can find their unique restoration ID and the phone number for making a claim in the Security tab of the app or dashboard. The same number also connects them to full-service restoration assistance.

What to do if you need to make a claim

Claiming ExpressVPN’s ID Theft Insurance* involves a few steps, and some of them have deadlines. Missing one can affect whether a claim is paid.

• Reports to relevant institutions and the police: Report the identity theft to your bank, card issuer, or any other affected institution as soon as you can. If a crime is involved, report it to the police as well and keep a copy of the police report, since the claim must include it.
• Claim call within 60 days: Call the claim number shown in the Identity Defender app or ExpressVPN+ dashboard within 60 days of discovering the loss, or as soon as reasonably possible.
• Sworn proof of loss within 60 days: Send a detailed, sworn proof of loss within the same 60 days. For stolen funds, include a document from your bank or other financial institution confirming the money was fraudulently taken and can’t be recovered.
• Insurer’s consent before paying for anything: Check with the insurer before paying for anything related to the claim, such as a lawyer or an investigator. Costs paid without the insurer’s written consent may not be reimbursed.
• Records of expenses and legal papers: Keep receipts, bills, and other records of everything you spend, and send any legal notices or court papers you receive to the insurer.
• Steps to limit costs: Keep costs down where possible, for example by asking lenders or credit bureaus to waive their fees.

Note: For step-by-step instructions on setting up ID Theft Insurance* and finding the claim details in the Identity Defender app or ExpressVPN+ dashboard, see our Support guide.

*The insurance is underwritten and administered by American Bankers Insurance Company of Florida, an Assurant company, under group or blanket policies issued to Array US Inc. or its respective affiliates, for the benefit of its Members. Please refer to the actual policies for terms, conditions, and exclusions of coverage. Coverage may not be available in all jurisdictions. Review the Advanced Tier Summary of Benefits and the Express Pro Tier Summary of Benefits .