Are You at Risk for Medical Identity Theft?

by onlinefinancialnewsletters | Jan 30, 2015 | Personal Protection

When you think about the dangers associated with identity theft, you likely imagine shadowy criminals using your financial information to apply for credit cards or take out loans. While these actions can devastate your credit score—and often take years to repair—there’s another hazard that goes beyond that important number. It’s the theft of your medical identity, and according to experts at the Identity Theft Resource Center (ITRC) in San Diego, more than 1.8 million Americans became victims of this crime in 2013.

In fact, according to the ITRC, stealing medical insurance information and using it to obtain treatment and medication or submit false billings is the fastest-growing type of identity theft. Reports of the crime are increasing at an annual rate of 32 percent, and unlike credit cards—which offer some protection should you discover bogus charges—you’ll be on the hook for the costs incurred.

These costs can be quite large. According to the Ponemon Institute, which studies medical identity theft, 36 percent of the victims of medical identity theft encounter out of pocket insurance costs that average $18,660. Some have even lost their insurance or been charged higher premiums as a result.

While you cannot prevent data breaches or ensure criminals will not steal your personal information directly from a medical professional’s office, you can take the following steps to promptly spot and address problems.

Read your mail. Whenever you receive a letter from your health insurance carrier or your medical provider, review it carefully. If you notice listed doctors, treatments or facilities that are not familiar, notify your carrier immediately.

Request an annual list of benefits. Once a year, ask your insurer to provide you with a list of the benefits paid out in your name for the previous 12 months. Verify that all the information included on that list is accurate.

Check your credit report. Of course, you should already be doing this to look for other signs of identity theft. Unfamiliar medical collections included in the report may indicate medical identity theft. Contact the major credit-reporting firms immediately if you discover one.

Keep your health insurance numbers confidential. You wouldn’t give your credit card or social security number to just anyone, so don’t hand out your medical plan number either. Avoid health fairs or free screening kiosks that request your insurance information. Never give your number over the phone (unless you’ve called the insurer’s direct line yourself). And if you lose or misplace your card, contact your insurance provider as soon as possible.

Request a copy of your medical file. While you may have to pay for this service, ask your doctor to provide you with a copy of everything in your medical file. This is your “paper trail” in the event that you must dispute charges for visits or treatments you did not receive.

According to the U.S. Department of Justice, medical identity theft is already a multi-billion dollar industry. Don’t become a victim. Protect your health insurance information, review all related records carefully, and contact me today about investing in identity theft insurance.

Do You Really Need that Car Rental Insurance?

by onlinefinancialnewsletters | Jan 20, 2015 | Personal Protection

It’s a question you hear every time you rent a car: “Would you like to purchase insurance for this rental?” If you’re particularly cautious, you may even be tempted to answer in the affirmative, despite the fact that full supplemental coverage is prohibitively expensive, actually doubling the cost of rentals according to the United Services Automobile Association. Fortunately, there’s a good chance you don’t even need it. Consider the following before you approach the rental counter.

Your regular auto insurance may already cover your rental.

In many cases, the liability coverage you have on your day-to-day vehicle will extend to damages to other cars or property caused while driving a rental car. If you carry collision coverage as part of your regular policy, it may cover accident-related damages to the rental vehicle as well. Comprehensive coverage on your regular automobile can even cover vandalism or theft of your rental car.

What is actually covered depends on your particular policy, so you should consult with your car insurance agent before renting any vehicle. You should also keep in mind that even full coverage under your primary auto policy might not cover every charge—such as loss of use and administrative fees—the rental company will impose in the case of an accident.

You may already have rental car insurance through your credit card.

Some credit cards include supplemental benefits such as rental car insurance. In order to apply this benefit, you have to reserve and pay for the rental using that particular card. Terms and conditions vary widely, from primary coverage—that won’t require you to make a claim under your regular insurance policy—to secondary coverage—that will help you out with the deductible and other costs. In most cases, you must decline the supplemental insurance offered by the car rental company in order to obtain the credit card company’s insurance coverage.

Keep in mind, any coverage you receive from your credit card issuer is going to come with restrictions. For example, you may not be able to rent certain types of vehicles. Or the insurance may not cover damages that occur under particular situations (such as on a dirt road) or to specific parts of the car (such as the wheels). Card issuers frequently cap rental periods as well. Make sure you know what your credit card company offers before you rent a vehicle.

Sometimes, additional rental insurance coverage is still a good idea.

If your personal insurance policy does not include comprehensive or collision coverage, it may make sense to purchase liability coverage from the rental company. You might reach the same conclusion if your current car insurance policy carries a high deductible. Additionally, if you’re renting a car on a business trip, or intend to drive it into another country (other than Canada), you will likely need additional insurance coverage. Give me a call to discuss your particular car insurance policy’s declarations and limitations before proceeding.