IANAL either. BUT, I know a guy who had his car stolen through fraud. The fraudster gave him a bogus cashiers check (and his bank took over a month after deposit to alert him that the check was bogus).
His car insurance paid out on a theft claim. I'm sure there were more details to it, but I've never heard of "fraud insurance" as part of an auto insurance policy.
FYI (everyone): US Post Office offers a money order verification system to avoid bogus transactions like these. I've gone so far as to choose a meeting location around the corner from a post office location and insist on a money order from that location.
