To set itself apart from the competition, Volkswagen of America Inc. is offering a year of free car insurance with the purchase of a new vehicle in select states.

The “In the Car” pilot program will run from Jan. 4 to March 31 at 43 dealerships in Illinois and Wisconsin, reported Automotive News. To qualify for the incentive, customers must have a valid driver's license and buy or lease a new 2004 or 2005 Golf, New Beetle or New Beetle convertible.

The program is open to all drivers licensed in Illinois or Wisconsin, regardless of their driving record. VW dealers told Automotive News that the incentive is worth between $1,300 and $3,000. Customers who take advantage of the offer remain eligible for low-interest financing on the vehicle as well, said a VW spokesman.

The program targets younger buyers and those who may have some credit problems. Unlike an incentive that offers zero percent financing, an insurance incentive does not exclude less creditworthy customers. In addition, offering savings through insurance does not impact the residual value of the vehicle.