There are several other types of credit insurance that may or may not be offered by financial institutions or car dealerships in their finance departments.
Insurance companies providing these products have become very creative when it comes to what’s going on within the world at any given time.
Other Types of Credit Insurance Coverage – Insurance companies can get very creative when offering different products to protect you from a life event. Most of the credit insurance policies offered are very expensive for what they cover and you most likely already have coverage through your own personal insurance.
Credit property insurance coverage – This form of insurance will only cover the property (vehicle) that you’re financing. If you already have renter’s insurance or a homeowner policy, your financed item will already be covered. You should avoid buying credit property insurance.
Credit unemployment insurance coverage – Credit unemployment coverage is a very expensive form of credit insurance. Car dealers are very good at using emotional scare tactics to get you to buy this type of credit insurance. This form of insurance will make limited payments on your car loan if you become involuntarily unemployed.
The bottom line when it comes to other types of credit insurance coverage – Insurance companies are always looking to create a new way to make money and sending these new insurance policies out to sell the general public. If you’re presented with any type of credit insurance coverage, make sure that your personal insurance coverage does not already have you protected.
