The scheme, offered through Fiat and some other distributors, applies to a number of model ranges, and is only available to buyers who take up the TSB three-year finance package.
Chris Hanlon of TSB confirmed that after the first year, those who have taken up the offer are free to look for insurance elsewhere.
He also said that the difference between the 99 euros and the normal insurance premium for that first year is not 'hidden' in any way in the financing package.
"With the possibility that car sales between April and June might not be up to normal levels, we all got together and decided to contribute to the scheme," he said.
Fiat, however, say that they are not involved in any margin reduction with the scheme, which is open to buyers who are over 25 and have a full five years of no claims bonus. Full details available at participating dealers.
