What Is Identity Theft Insurance?
Identity theft insurance is a type of insurance that helps reimburse certain costs related to identity fraud. It can't prevent fraud from happening, but it can help cover some of the expenses you face while restoring your identity. Depending on your policy, coverage may include legal fees, lost wages, and even reimbursement for stolen funds.
Standalone identity theft protection services (like Aura or Identity Guard) include credit monitoring, Dark Web scans, and identity restoration. Many traditional insurers let you add ID theft coverage to homeowners or renters policies; these policies can lack malware protection or fraud alerts.
Some lenders and credit bureaus offer limited coverage focused on credit monitoring rather than reimbursing stolen funds or out-of-pocket expenses.
Suspect you’re a victim of fraud? The Federal Trade Commission (FTC) offers free resources at IdentityTheft.gov. You can also file a complaint with the FTC at ftc.gov. If you’ve received an Aura alert about suspicious activity, call the support number provided with the alert. Aura’s team will guide you through the process of filing a claim with its insurance provider.
Buying Identity Theft Insurance
If you’re exploring identity theft insurance options, Aura offers insurance through a group policy underwritten by American Bankers Insurance Company of Florida. This coverage is included on all of Aura’s identity protection plans that cost between $12–$40 per month.
Aura’s insurance comes with two main coverage levels — a $1 million plan and a $5 million plan. If you purchase a family or couple plan, each member of your plan receives their own insurance policy.
Both plan levels provide:
- Reimbursement for many fraud-related expenses (legal fees, lost wages, etc.)
- Coverage for unrecoverable funds stolen via certain unauthorized transactions
- The option for a family plan if your membership covers multiple adults and/or dependents
The biggest differences between the two plan levels are the overall coverage limit and the extra types of protection included in the $5 million plan.If not with Aura, here are some other ways to get coverage:
- Homeowners or renters insurance add-ons: You can add an identity theft rider to many homeowners or auto insurance policies from major insurers (like Allstate or State Farm). These typically involve a deductible and may emphasize identity restoration over broader protection.
- Credit card companies and banks partner with fraud specialists to monitor your bank accounts for suspicious activity and may reimburse you for fraudulent charges. This coverage usually isn’t as comprehensive as a dedicated identity theft protection plan and may not extend to your personal data if it’s compromised elsewhere.
- Credit bureaus — Equifax, Experian, and TransUnion — offer credit monitoring services and fraud alerts to protect your Social Security number (SSN) and credit file, along with identity theft insurance in most cases.
Ultimately, the right fit for you depends on your needs, budget, and how much protection you want beyond basic insurance.
Coverage Overview: Aura vs. Other Insurance Providers
Aura |
$1M or $5M |
Included with an Aura subscription (Single or Family) |
~$12–$40/month (varies by plan) |
Depending on the plan, includes coverage for home title theft, ghosting, and investment/HSA fraud. Stolen funds reimbursement, identity restoration, and online security tools are also available. |
Chase |
Up to $1M |
Included with Credit Journey® |
$0 for Chase cardmembers |
May include expense reimbursement and cash recovery for unauthorized fund transfers. |
State Farm |
Up to $50K |
Endorsement (rider) to homeowners, renters, condo, manufactured home, or farm insurance policy |
~$25/year |
Mainly covers ID restoration expenses. Coverage levels and cost can vary by policy and location. |
Discover |
Up to $1M |
Monthly subscription (active membership required) |
~$15/month |
Sub-limits include $1,500/week (up to five weeks) for lost wages, $1,000 for initial legal consultation, and $2,000 for elder/spousal/child care. Coverage is secondary to other insurance. |
Here’s a Closer Look at Aura’s Coverage
Identity Fraud Expense Reimbursement |
Up to $1M |
Up to $5M |
Covers costs like legal fees (capped at $125/hour), lost wages, notary fees, credit report fees, etc. |
Cash Recovery Aggregate |
Up to $1M (part of $1M total) |
Up to $1M (part of $5M total) |
Covers unrecoverable stolen funds (like unauthorized electronic transfers). Limited to one occurrence per 12-month period. |
Investment and Health Savings Accounts Cash Recovery |
- |
Included (up to $5M, part of $5M total) |
Reimburses unrecoverable funds from retirement or health savings accounts (you must first seek reimbursement from the institution). |
Senior Expense Reimbursement |
- |
Included (up to $5M, part of $5M total) |
Covers fraud against your senior family member (not available in NY). |
Home Title Identity Theft |
- |
Included (up to $5M, part of $5M total) |
Covers deed fraud or title theft on your residential real estate (not available in NY, TX). |
Ghosting Expense Reimbursement |
- |
Included (up to $5M, part of $5M total) |
Covers the unauthorized use of a deceased family member’s identity (not available in NY). |
Reverse Record/Professional Identity Theft |
- |
Included (up to $5M, part of $5M total) |
Protects against fraud that affects your professional background or licensing records (not available in NY). |
Cyber Extortion |
- |
Included (up to $5M, part of $5M total) |
Covers recovery expenses from ransomware or similar attacks (not available in NY). |
Emergency Cash/Lost Wallet |
- |
$500 per 12-month period (part of $5M) |
Requires a police report if you lose your wallet while traveling 100+ miles from home (not available in NY and TX for Home Title Identity Theft). |
Terms to know: Expense Reimbursement vs. Cash Recovery Aggregate
Expense Reimbursement
This covers any out-of-pocket costs you incur because of identity fraud. For example:
- Legal fees (capped at $125/hour)
- Lost wages if you have to take time off from work
- Child or elder care expenses
- Costs for notarizing and mailing documents
- Credit report or credit freeze fees
- Investigative/private investigator fees (up to $125/hour)
Cash Recovery AggregateThis is a subset of your total Expense Reimbursement set aside specifically to cover unrecoverable stolen funds. That might include unauthorized electronic transfers from your checking, savings, or similar accounts.
- You must first seek reimbursement from your bank or credit card provider.
- If they don’t or can’t reimburse all of the lost money, Aura’s insurance can cover the remaining amount, up to the Cash Recovery limit.
In short, Expense Reimbursement pays for the costs of resolving the fraud (lawyers, postage, lost wages, etc.), while the Cash Recovery Aggregate covers the actual money stolen from your accounts (as long as it isn’t otherwise recoverable).
📚 Related: How Does Identity Theft Insurance Work? Do You Need It? →
Aura’s $1 million vs. $5 million plans
Both plans provide coverage for identity fraud expenses and stolen funds. However, the $5 million plan offers a higher overall limit and additional protections (like Home Title Identity Theft, Senior Expense Reimbursement, and more).
$1 million plan
- Total limit: $1,000,000 per Single or Family membership, per 12-month period
- Cash recovery limit: $1,000,000 (included within the $1,000,000 total)
- Family coverage: The $1,000,000 limit is shared among the primary account holder and covered family members
$5 million plan
- Total limit: $5,000,000 per Single or Family membership, per 12-month period
- Cash recovery limit: $1,000,000 (included within the $5,000,000 total)
- Additional protections:
- Investment and Health Savings Accounts (HSA) Cash Recovery
- Senior Expense Reimbursement
- Home Title Identity Theft
- Ghosting Expense Reimbursement
- Reverse Record/Professional Identity Theft
- Cyber Extortion
- Emergency cash/lost wallet: Up to $500 per membership per 12-month period (also part of the $5,000,000 total)
All coverages draw from the same total limit in each plan. For example, if you have the $5 million plan, all additional protections and Cash Recovery combine to a maximum of $5 million total per year.
How coverage works when there are multiple adults on a plan
Family membership (primary account holder + dependent children)
When you sign up for an Aura family membership (either the $1 million or $5 million plan), that coverage pool automatically applies to you (the primary account holder) and any dependent children or qualifying dependents in your household. These dependents share the same overall limit (for instance, $1 million or $5 million) with you.
Additional adult members (separate single memberships)
If you want to add other adults (such as a spouse, partner, or parent) to your Aura membership plan, they do not join your insurance plan.Instead, each additional adult gets a single insurance plan with their own $1 million or $5 million limit.
This separate limit is not shared with the primary account holder or any dependents.In other words, a family membership covers the primary account holder and dependent children within a single limit, while any additional non-dependent adults receive their own, separate coverage.
Exclusions and limitations
- Fraud by the insured: No coverage if you (or someone acting with you) commit a fraudulent, dishonest, or criminal act.
- Voluntary surrender of access devices: Losses aren’t covered if you willingly share your password, PIN, or payment card.
- Pre-existing identity fraud: Any fraud discovered before your coverage start date is not covered.
- Unreported fraud: You must notify Aura or the insurer within the required timeframe (usually 60 days or “as soon as reasonably possible”). Missing this window can invalidate your claim.
- Business or commercial accounts: Losses tied to business activity or accounts aren’t eligible for coverage.
- Cryptocurrency and digital currencies: Stolen digital currency (like bitcoin, ethereum) isn’t reimbursed.
- Hourly fee limits: Investigative or attorney fees above $125 per hour aren’t covered.
- State-specific restrictions: Certain benefits (like Home Title Identity Theft or Ghosting Expense Reimbursement) aren’t available in New York and/or Texas.
How To File a Claim
If you’re an Aura member and may have been a victim of identity fraud, here’s how you can start your insurance claim process:
1. Notify appropriate parties
- If the fraud involves a crime, file a police report.
- Report unauthorized transactions to your bank or credit card issuer.
- Call Aura’s claims line (1‑866‑237‑5240) within 60 days of discovering the fraud or as soon as reasonably possible.
2. Collect necessary documents
- Police report(s)
- Bank or institution statements confirming stolen funds are “non-recoverable”
- Any relevant notices (for example, legal summons or credit denials)
3. Submit proof of loss
- Within 60 days of discovering the fraud, file a detailed, sworn proof of loss with the insurer.
- Keep receipts and documentation for all expenses (notary fees, lawyer costs, etc.).
4. Cooperate in the investigation
- Provide requested documents, attend hearings or depositions, and forward any communications related to the incident.
5. Receive reimbursement
- Once approved, Aura’s insurer aims to settle valid claims within 90 days after receiving acceptable proof of loss.
📌 Remember: Always read your full Summary of Benefits to confirm the exact deadlines and documents required. Aura’s identity theft insurance includes coverage for out-of-pocket expenses, plus additional specialized protections depending on the plan you choose.
As with any insurance, be sure to review all details, note any exclusions and deductibles, and follow the claims process closely to get the most from your coverage if you become a victim of identity theft.
Editorial note: Our articles provide educational information for you to increase awareness about digital safety. Aura’s services may not provide the exact features we write about, nor may cover or protect against every type of crime, fraud, or threat discussed in our articles. Please review our Terms during enrollment or setup for more information. Remember that no one can prevent all identity theft or cybercrime.
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