You can't give away free insurance. The premium is most likely "hidden" in the monthly payments. Cool idea to roll the two payments into one monthly payment (similar to how I like paying for cable and Internet in one bill), but the "free insurance" claim is very misleading.

Perhaps I'm wrong though...is there any further information on how this system works? I guess it would be plausible/legal that VW could kick the money to Nationwide to pay for these policies.