What's the catch with Volkswagen's ENsurance accident management?

I have just put a deposit on a new Volkswagen Golf 1.4TSI SE, and intend to pay for it on delivery. On reading the brochure there is a section headed Volkswagen ENsurance, which says that, in the event of an accident, they will negotiate with my insurer so that my car is repaired by a Volkswagen-approved repairer. They also include legal cover and courtesy car for the duration of the repairs. All this is free. I would appreciate your views on this as I feel there must be some catch.

Asked on 30 November 2013 by AL, Wokingham

Answered by Honest John
The advantage is that the car will be properly repaired to Volkswagen retail standards and therefore won't lose its body warranty, and can be part exchanged at a Volkswagen dealer without serious penalty in the future. The disadvantage is that nothing is for nothing. And if Volkswagen has contracted with an accident management specialist to provide this service, then that specialist will earn its money by putting crash victims into expensive 'credit hire' cars for the duration of the repair, which may be extended to make more money from the hire. If the insurers refuse to pay, the crash victim becomes liable for the credit hire and I have heard of bills as high as £70,000 (while an Aston Martin was being repaired). £10,000 during the repair of a BMW is not unusual.
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