Odd idea. But why not?

It occurred to me that one of the detriments to purchasing a new car is the additional payment of full coverage insurance. Banks already work with insurance companies to bundle home owners insurance with mortgages. Why not do the same thing car insurance over the span of the note? Surely it would increase car sales as the banks could garner better rate for their customers and insurance companies have the payment in timely and regular basis.

So the question is why not?

reply to post by Ahabstar


They do it here in the UK with some cars. For the first year at least, as a teaser.

Thet used to do it (and targeting young drivers specifically) with the Vauxhall Corsa. In fact I think they still offer it.

I'd like to see two or three free years fully comp with a new car, but some people are an absolute f*** king liability, so you have to have conditions, like a driving assessment, or no points on your license, or something similar in order for big companies to see the value (or maybe the opposite, as they want to increase your premium nex year, and what better way than giving free insurance if you don't have an accident???).

Once the nervousness about paying for insurance set in they'd begin to make a packet.

reply to post by Ahabstar


Awesome idea, Ahab! It would ensure that more drivers had insurance, and good insurance at that, as the banks would not want to do business with insurers that are cheap on the payout...