Buying a car is a major purchase, which is why auto insurance is so vital to protecting the financial commitment you make when you buy or lease a vehicle. Financing a vehicle is an option for buying a car that you can't afford to pay cash for, but it also means that you can end up owing more than your car is worth. Gap insurance pays this difference in the event of a major accident or theft.

Gap insurance pays for the difference between what your standard auto insurance policy says your car is worth and what you owe on your auto loan. This means it's valuable for drivers who are upside-down in their loans and owe more than their vehicles are worth.

Credit life insurance is a life insurance policy created to pay off a borrower's debt when they die.

Credit life insurance protects dependents from the financial burden of outstanding debt. If an individual has young children and various big ticket items they have charged, then credit life insurance could be a policy to consider purchasing. This would ensure that in the event of his or her death, the children, regardless of age, would be able to keep those items that belong to the parent especially if they hold sentimental value.

Credit disability insurance is a policy that covers your loan payments under certain circumstances. This insurance covers your monthly loan payment on the covered account if you are unable to work due to injury or illness.

Insurance provides peace of mind if you worry about health problems impairing your ability to pay your bills. The MyFICO credit score website advises that one-third of your score comes from your loan and credit card payment history. A disability policy protects your credit rating because your payments are still counted as being on-time even thought you are not making them yourself.