Forced-placed insurance
If you don’t have insurance when purchasing your vehicle or if your insurance lapses, the lender can acquire forced-place insurance to cover the vehicle if anything were to happen. Keep in mind, this coverage protects the lender and vehicle, but not you.
Vendor’s Single Interest (VSI) insurance
VSI insurance protects the lender if your vehicle is damaged or destroyed. The cost of the insurance may be passed on to you in the overall cost of your loan or may appear as a separately itemized charge. Check to see if this can be waived or canceled later by getting your own insurance.
GAP insurance
GAP is an optional add-on product that promises to cover some or all of the difference between a car’s cash value and the remaining balance on your loan or lease (for example, when the car’s value is below your loan balance) if the car is stolen or totaled.
Credit insurance
Credit insurance is an optional product that ensures your auto loan payments continue if you die, lose your job, or become disabled.