It is important to distinguish between credit and auto insurance offers, generally offered by insurers, from auto credit insurance. In the latter case, it is about credit insurance and not car insurance. We will therefore compare the auto insurance and credit pack AND take the car insurance and credit separately.
Credit and auto insurance pack: what is it?
The auto insurance and credit type offers are packages that simplify the acquisition of new vehicles:
- a new car loan intended for financing
- auto insurance
This pack is supposed to offer the cheapest car credit rate on condition that you take out car insurance with the same company. This is what we are going to check.
Auto Insurance and Credit Comparison AGAINST Auto Insurance + Auto Credit
The most common offer of auto insurance and credit is the pack offered by Insurance company. Designated Auto Credit + Insurance company Auto Insurance Pack, this offer offers a promo Insurance company auto credit rate provided you take out auto insurance with Insurance company. We will dissect this offer to know if it is really interesting.
It should also be noted that for the first time this year, a credit organization came to the insurers’ borders: Astro Finance. Indeed, this organization offered a month of insurance offered and a very attractive rate if customers went through them to take out auto insurance.
Insurance company pack against the best car loan
The car loan + Insurance company insurance pack is:
- a car loan Insurance company at a promotional rate
- All-Risks or Eco All-Risks car insurance
It should be noted immediately that a third service is highlighted: the replacement cost compensation option. But in reality, this is just one option of auto insurance. Nothing to do with the fact that in the package this option would be cheaper…
What is interesting is that by choosing the Insurance company credit and insurance option, it is possible to access a dedicated credit simulator. We will therefore be able to objectively compare the rates offered by Insurance company and the best auto loan rates from our credit comparison. This is what we did for a new car loan of 10,000 USD:
|credit terms||12 months||24 months||36 months||48 months||60 months|
|Fixed APR rate insurance pack + Insurance company car loan||0.90%||1.90%||2.90%||2.90%||3.10%|
|Best fixed APR rate on the market||1.00%||2.00%||2.20%||2.40%||3.00%|
Our conclusion is that in reality, the Insurance company credit + auto insurance offer is in fact a promotional rate of credit over 12 months… like all the promotions of organizations that do not really offer cheap credit! Indeed, credit over 12 months is often inaccessible since it generates huge monthly payments. For our example of € 10,000 over 12 months, it is more than € 830 that we must be able to repay each month.
It is really essential to compare this type of car insurance and credit offer before committing.