In fact, most banks or financial companies only require that they must buy four types of insurance, namely, car damage insurance, three types of insurance, burglary insurance and spontaneous combustion insurance, all of which are free of compensation. This is because the above types of insurance may cause a total loss of the car, because before you pay off the loan, the first beneficiary of the insurance is the bank of the loan.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.