Volkswagen Commercial Vehicles has launched a new fixed price insurance offer to reward owners who are often hit with increases in premiums when staying with the same insurer. The three-year fixed price insurance offer from Volkswagen Commercial Vehicle Financial Services has been introduced in response to customer feedback after research revealed 40 per cent of owners switch insurance every year because loyalty isn’t rewarded.

Figures show drivers experience an average increase of £46 a year when renewing with the same insurer, costing the nation an estimated £4.1 billion in excess premiums, according to the Financial Conduct Authority and Competitions and Market Authority.

The Volkswagen Commercial Vehicles offer, part of the brand’s Working With You promise, secures the renewal price for two cycles. The price will only change if circumstances change.

The deal is available across the Volkswagen Commercial Vehicles range of new and used passenger-carrying vehicles: Caddy Life, Caddy Maxi Life, Shuttle, Caravelle, California and Grand California.

At the same time, the offer gives customers flexibility to cancel or switch, with the policy operating as a normal 12-month contract. Any repairs done as part of a claim are carried out by Volkswagen-trained technicians using genuine parts.

Tom Macintyre, Brand Manager for Volkswagen Commercial Vehicle Financial Services, said: “As part of our commitment to Working With You, we are responding directly to customer feedback with this insurance offer which rewards loyalty. We believe owning a vehicle – whether it’s a Caravelle, Caddy Life or California – should be hassle, worry, and stress-free and allowing our customers to secure a fixed price on their annual insurance for three years offers exactly that.”