Car Buyers Get No-Charge Insurance in Volkswagen-Nationwide Pilot Program Based on Car Model Risk

January 3, 2005

  • January 3, 2005 at 6:50 am
    Insurance Geek says:
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    I looked into this kind of thing not too long ago and concluded that free insurance is illegal in most states. How are they circumventing the free insurance prohibitions?

  • January 4, 2005 at 8:42 am
    DEAN says:
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    Irregardless of the cost of insurance, in order to provide the incentive I would think that every car saleperson would have to be licensed to sell insurance.

  • January 4, 2005 at 9:57 am
    Jennifer says:
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    Yes, the car salesmen would have to be licensed producers in almost every state b/c they’re advising about the availablility and conditions of insurance. Talk about an administrative nightmare.

  • January 4, 2005 at 11:31 am
    Dido says:
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    I was thinking the same thing about the salesperson and licensing. I’m seening banks offer insurance more and more nowadays and all they do is make you call thier producer while you are there at the bank. Come to think of it the company was Allied, a Nationwide company. hmmmmmm

  • January 4, 2005 at 3:18 am
    GREG IN KY says:
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    THE ANNOUNCED PLAN TO PROVIDE FREE INSURANCE AS AN INCENTIVE TO BUY CERTAIN MODELS OF VW’S NO DOUBT WILL ENDEAR THE COMPANY TO ITS LOYAL NATIONWIDE AGENTS.(GAG!)
    THIS IS PROOF POSITIVE THAT LUNACY IS NOT THE EXCLUSIVE DOMAIN OF POSITIONS LOWER THAN WHERE THIS HAD TO BE APPROVED. I AM GLAD THAT I AM AN INDEPENDENT SO THAT I MAY MAKE MY OWN JUDGEMENTS AND EXPRESS THE SAME WITHOUT REPERCUSSION. THIS WILL ULTIMATELY COST NATIONWIDE PRESTIGE AND DOLLARS IN ITS ASSERTION TO DISTRIBUTE ITS PRODUCTS IN THIS MANNER. I GUESS THIS ACTION IS ALSO A TRUE REFLECTION OF THE VALUE THEY PLACE ON THEIR CAPTIVE AGENCY PLANT. IT WILL BE INTERESTING TO SEE HOW THIS UNFOLDS.

  • January 4, 2005 at 4:04 am
    Jesus says:
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    This too, shall pass.

  • January 5, 2005 at 9:33 am
    J says:
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    Nationwide gets a customer they might or
    might not renew, VW sells a car and in the
    2nd year another uninsured driver is on the road in their new VW that they can’t afford the insurance on.
    WHERE IS THE COMMISSIONER???????????

  • January 5, 2005 at 11:22 am
    jsjag says:
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    They call themselves creative innovators but I have other words for it This is a come on sale using insurance as the leverage bar. It isn’t free. Is the insurance premium bundled in the purchase price and amortize into the loan? It probably is and will in the end be more costly then insurance purchased outside the scheme. They mention “younger” drivers will be purchasers and we all know what the “younger” driver does to loss ratios and cost.

    Hm…it’s time to update the XJ6 maybe my dealer will be offering an insurance policy with it. NOT!

  • January 5, 2005 at 3:01 am
    Whatif says:
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    What if they just call it “Free” insurance but in reality they just write a regular policy and even include price differences due to underwriting. Then when they get all this information they start bargaining the price of the ‘car’ with the insurance included – So basically everyone pays a different price anyway.

  • January 5, 2005 at 6:26 am
    The Other Mark says:
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    I’m surprised this isn’t some Progressive Insurance sceme. hah.



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