In practice there are differ-ent views towards the legal nature of consuming loan warranty insurance, and predominant views are the theory of security law relationship, the theory of insurance law relationship and the theory of concurrence of security law relationship and insurance law relationship.

As a new law system, The guaranty insurance contract of automobile credit means the Underwriter promise to the Insurant that it will assume obligation of compensation for loss if the Consumer borrower of Automobile hasn\'t fulfilled the obligation in the contract of automobile credit.

The paper firstly investigates and studies the high information asymmetry and high risks empirically which Chinese financial institutions such as banks face in loan contracting.

But supervision duty is not fit for coercive duty;well-meaning duty weakens the guarantee mechanisms of loan contract,and increases insurance against promise;trust duty and punitive indemnification duty exerts harm influences to debit and credit sides.

the main risks of individual consumer loans result from two factors: short of refund ability with borrower, short of refund wills with borrower.