It’s funny, but I once came to realize that I am more concerned about losing things that I don’t actually have compared to stuff I do have. I know this sounds strange but I’ll explain. Losing something you do have such as your car or other objects can be quite annoying and difficult but you can live with it making car insurance a very good idea but not a total must. However, when you consider third party collision insurance where you can be sued for an almost infinite amount of money, I see insurance as a true must since you can actually lose more than you even have. The same goes with theft. I am much more concerned about identity theft than property theft. The reason is similar. With property theft your loss is capped at the value of the property. But with identity theft someone can create almost unlimited damage by issuing loans and expenses on your name leaving you with a huge mess to handle. If you are also concerned about identity theft you should check out lifelock. They provide a credit file monitoring service that makes sure you know of any changes in your file thus practically eliminating the threat of identity theft.