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DaimlerChrysler Financial Services, the finance and insurance division for Dodge, says the offer is open to all buyers whatever their insurance history.
A male driver with clean insurance history choosing standard excess could save between $1400 and $3600 through the scheme. The higher figure represents nearly 10 per cent of the purchase price with the car starting at $36,990.
The free insurance offer has also been extended to people who buy Dodge's other SUV, the Caliber.
The Nitro will be available with either a 3.7-litre V6 petrol or a 2.8-litre, four cylinder turbo diesel engine.
It arrives in showrooms in July.
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