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The Latest New Car Incentive - "Free" Auto Insurance

Volkswagen of America is about to test a new incentive designed to spur sales. Customers who purchase or lease selected new VW models during a...
January 6, 2005

Volkswagen of America is about to test a new incentive designed to spur sales. Customers who purchase or lease selected new VW models during a three-month test in Illinois and Wisconsin will receive what is being billed as "the industry's first no-charge insurance policy." Of course, nothing is free. Volkswagen will pay the premiums based on a new insurance model developed by Creative Innovators Associates, a New York insurance think-tank that bases risk on the car model rather than a driver's profile. All drivers will qualify regardless of driving record, said Creative Innovators spokesperson Kathleen Hamilton. The system anticipates a higher-than-normal ratio of younger, higher-risk drivers. The VW In the Car(TM) insurance policies in the pilot program are underwritten by Nationwide.

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