Nationwide, VW program reports test run results.

Volkswagen is offering an incentive program that provides free private-passenger automobile insurance coverage for one year to new car buyers.

Volkswagen provided one year of insurance underwritten by Nationwide Mutual Insurance Co. for every new Golf, Beetle and Beetle Convertible purchased or leased in Illinois and Wisconsin from Jan. 4 to March 31 during a test run of the new In The Car (ITC) incentive program, created by Long Island-based Creative Innovators Associates LLC, a consulting and marketing firm, the company said. The only requirements were proof of residency and a valid driver's license in either state.

Creative Innovators said the program caused a 23% hike in year-to-year sales, with two-thirds of buyers saying the insurance package enticed them to buy the vehicle. Nationally, sales of the models involved in the program declined 15% in comparison, the company said.

Robert Hartwig, senior vice president and chief economist for the Insurance Information Institute, said, "Nationwide benefits from this association. After that first year, they are likely to hold onto most of those customers."

Creative Innovators found that:

* Two-thirds of customers said the program influenced their buying decision;

* Two-thirds of the primary drivers were between 30 and 64 years old;

* Male and female drivers were attracted in almost equal numbers; and

* More than half the primary drivers were married.