The myth of “Full Coverage” explains well that no one really has full coverage. Many people, when they buy a car, follow the salesman’s advice and go looking for “full coverage”. What do they really needed?

The bank (or car salesman) that that tells you that you need “full coverage” really only cares that you have comprehensive and collision coverage to fix the car if it is damaged with a maximum of $500 deductible. They don’t care if you even carry liability coverage - but the state does, so those are your minimum. From there you can add more coverages, primarily to protect you, your family, and your assets. You should have more than the minimum, carrying coverages such as Personal Injury Protection (PIP) and Uninsured Motorist.

There is a popular myth if you have purchased “full coverage” from your automobile insurance company, you will be covered for anything and everything when an automobile accident occurs. It is only after a collision that the myth of “full coverage” is soon replaced by the reality of “insufficient coverage.”

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You’re driving along on your daily commute when a car pulls in front of you and slams on its brakes.

You want to steer left into another lane, but a second car has appeared at your side. Wham — you rear-end the car in front and you find yourself handing out your insurance information and later paying for the other driver’s medical bills.

Are you and your insurance company being scammed?

According to The Olympian newspaper, Insurance Commissioner Mike Kreidler will request about $2 million in funding from the Legislature to create a five-person insurance fraud unit in his department, which would investigate such “staged accident” rings and other scams.

“It’s clear that we are ranked as one of the more fraud-prone states because we don’t have the resources to investigate and prosecute,” Kreidler said. “We’re going to start small and see how that works, develop a track record.”

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