Here's one more fee to watch out for when buying a car: credit insurance.

With credit insurance, your lender still gets paid if you have a serious financial problem --- if you die, for example, or if you become disabled or lose your job.

I first learned about credit insurance for credit cards in Eileen's column in March, which detailed how credit card issuers have started offering their own credit insurance products that canceled balances or suspended monthly payments due to financial hardship.

But the consumer advocates she talked to said customers would probably be better off using that money to just pay down their debt instead of paying monthly fees for this service. But in case of death, unless your heirs are named on the account they are not required to pay down your balance.

Now, based on this consumer newsletter from the Maryland Attorney General's office, I've learned that auto lenders also include credit insurance in the pile of fees taked onto a car purchase.

Why do lenders want you to have credit insurance? Because it guarantees they will get paid no matter what happens to you, because they often earn commissions on the sales of these items and, if they roll the price into the total price of the car, they can get you to finance this fee as well and therefore pay additional interest.

Here's what you need to know: it's rarely mandatory, though it can be required for loans secured by a piece of property, or a 'destructable possession' (like cars). But in that situation, the customer can choose the insurance company, so you have the freedom to shop around and compare rates, according to the AG's office.

Before you sign any credit insurance agreements, check to see whether your existing homeowners or life insurance policy already provides the necessary protection. And

If you've already paid for credit insurance, your policy should include cancelation terms that may provide for a refund if you paid the entire amount upfront, according to the AG's office.

For more information and questions to ask when evaluating a credit insurance policy, check out the Maryland Insurance Administration's advisory on credit insurance.