Insurance Cards: To Wallet Or Not?

It is not recommended to carry your insurance card in your wallet at all times. While it may be convenient to have it on you in case of emergencies, it is also risky. If your wallet is lost or stolen, your insurance card could be used by thieves to visit a doctor, fill a prescription, purchase medical equipment, or file false claims in your name. It is best to only carry your insurance card with you when you need it, such as when you have a doctor's appointment. Alternatively, you can create a digital ID card, as many insurance companies now offer digital versions of insurance cards that can be accessed securely through a mobile app.

Keep insurance cards with you only when needed

Keeping your insurance cards with you only when needed is a good way to balance convenience and safety. Here are some reasons why you may want to consider doing this:

Reduce the Risk of Identity Theft and Fraud

Carrying insurance cards in your wallet at all times can increase the risk of identity theft and fraud if your wallet is lost or stolen. Insurance cards contain a lot of personal information, such as your name, family members' names, employer details, and more. In the wrong hands, this information can be misused for medical scams, filing false claims, or other types of identity theft. By only carrying your insurance cards when needed, you reduce the chances of this sensitive information falling into the wrong hands.

Digital Alternatives

Many insurance companies now offer digital alternatives to physical insurance cards. These digital versions can be accessed securely through mobile apps, often requiring a login to view. Having a digital insurance card can provide the convenience of easy access without the risk of carrying the physical card. This way, you can leave your insurance card at home and access it on your phone when needed.

Keep a Copy at Home

Instead of carrying your insurance cards with you at all times, consider making photocopies or taking pictures of them and keeping the copies in a secure place at home. This way, if your wallet is lost or stolen, you still have access to all the necessary information to notify your insurance company and look out for fraudulent activity.

Only Carry When Needed

If you decide to carry your physical insurance cards, it's best to only do so when you know you'll need them, such as when you have a doctor's appointment. By carrying them only when needed, you reduce the overall time they spend outside of your home, lowering the risk of loss or theft. Set reminders on your phone or make notes on your calendar to remember to bring your insurance cards with you when necessary.

Other Important Considerations

While it's generally advisable to keep your insurance cards with you only when needed, there are a few exceptions to consider:

• Emergencies: In an emergency situation, you may not have the time or presence of mind to grab your insurance card before heading out. However, even without your insurance card, you will still receive emergency treatment. Hospitals and emergency rooms will treat you and obtain your insurance information later if needed.
• Daily Use: If you have a chronic condition or are taking regular medications, you may need to present your insurance card more frequently. In such cases, carrying your insurance card with you at all times may be more convenient and necessary for accessing regular treatment or filling prescriptions.

Store digital versions of insurance cards

Carrying physical insurance cards in your wallet can be risky. If your wallet is lost or stolen, your insurance card can be used by thieves to steal your identity or commit fraud. For example, they could use your insurance card to visit a doctor, fill a prescription, purchase medical equipment, or file false claims in your name.

A safer alternative is to store digital versions of your insurance cards on your phone. Many insurance companies now offer digital insurance cards that can be accessed through a mobile app. Digital insurance cards are more secure, as they often require a login to open the application. They can also be stored in your Apple Wallet or Google Pay wallet.

Digital insurance cards are accepted as valid proof of insurance in most states, except for New Mexico. They provide the same benefits as physical cards, such as easy access to your insurance information and contact details for your insurance company.

In addition to improved security, digital insurance cards offer convenience. You can keep your digital insurance cards up to date with just a click, ensuring you always have the correct information with you.

However, it is still recommended to keep a photocopy of your insurance cards in a secure place at home. This will enable you to access the necessary information to notify your insurance company promptly in case of loss or theft.

Remove unnecessary cards from your wallet

It is important to be mindful of what you carry in your wallet to avoid identity theft and fraud. Here are some tips to help you remove unnecessary cards:

• Only carry the credit or debit cards you need. If your wallet is stolen, you won't have to cancel every card you own. It is also a good idea to keep a list of cancellation phone numbers at home in case of theft.
• Remove extra receipts. Receipts can contain sensitive information, such as the last four digits of your credit card number. This can be enough for skilled hackers to figure out the rest. Empty out receipts from your wallet daily, and shred them as soon as you no longer need them.
• Do not carry your Social Security card. Memorise your Social Security number instead. If you need to provide it, call ahead and ask if a copy will be sufficient. Only bring the original if it is absolutely necessary.
• Do not carry your passport unless you are travelling abroad. A thief may be able to use your passport to open bank accounts, get a copy of your Social Security card, or travel using your name. When travelling, make a copy or keep a photo of your passport on your phone, and lock the original in a safe.
• Only carry your Medicare and/or insurance cards when going to an appointment. Otherwise, leave them at home. Check if your insurance company offers a digital version of your card, which you can access through a mobile app.
• Remove any other forms of identification apart from your driver's license, unless absolutely necessary.

Keep only one credit and debit card

Keeping only one credit and debit card in your wallet is a good idea for several reasons. Firstly, it reduces the risk of fraud and theft. If your wallet is lost or stolen, you will only need to cancel the one card you were carrying, minimising potential financial loss. This also makes it easier to keep track of your spending and can help curb impulse purchases.

Additionally, carrying multiple credit cards can be tempting if you are trying to build your credit score. It is easy to fall into the habit of paying late, maxing out cards, or applying for new credit too frequently, which can damage your credit history. By keeping just one credit card with you, you can focus on responsible spending and timely payments, which will reflect positively on your credit report.

It is also important to be selective about which credit card you carry. Consider the benefits and rewards offered by each card and choose the one that best suits your needs. For example, you may want to use a card that offers cash back or travel points. Alternatively, if you are trying to build credit, look for a card with no annual fee.

Finally, it is worth noting that debit cards do not help build your credit score in the same way that credit cards do. Debit cards are linked directly to your bank account, so using one does not reflect your ability to borrow money and pay it back responsibly. Therefore, if your goal is to build or improve your credit history, it is better to use a credit card and pay off the balance each month.

Minimise the risk of identity theft

Identity theft is a serious issue, with someone falling victim to it almost every minute. Here are some ways to minimise the risk:

Secure your personal information

Be cautious about giving out your personal information, such as your account numbers or Social Security number, over the phone, text, or the internet, unless you initiated the contact or are sure of the requester's identity. Be wary of phishing scams, where scammers pose as representatives of your bank, credit card company, or the IRS. Watch out for red flags such as misspellings in emails or texts, generic greetings, and urgent requests for action. Verify the legitimacy of the request by contacting the organisation directly.

Protect your personal information online

Avoid posting personal information, such as your birth date, on social media or other public platforms. Only provide personal or financial information on secure websites, indicated by a padlock symbol and a URL starting with "https".

Limit what you carry

Only carry the essential identification, credit cards, and debit cards that you need. Leave other forms of identification, such as your Social Security card, birth certificate, and passport, in a secure place at home.

Protect your Social Security number

Keep your Social Security card in a safe place, and only provide your Social Security number when absolutely necessary. Do not carry it with you.

Use strong passwords and two-factor authentication

Create complex and unique passwords for your online accounts using a password manager. Enable two-factor authentication whenever possible to add an extra layer of security.

Be vigilant with your mail

Promptly collect your incoming mail and use a secure mailbox to reduce the risk of mail theft. Shred sensitive documents, such as credit card receipts, bank statements, and insurance forms, instead of throwing them away.

Protect your devices

Take measures to secure your electronic devices, such as laptops, tablets, or cell phones. Avoid downloading files from strangers, use a firewall and secure browser, and keep your virus protection up to date. When disposing of devices, delete personal information and overwrite the hard drive.

Frequently asked questions