Thats why VW are so keen on selling you GAP insurance. Your car gets nicked, written off/never seen again, you get the original sale price back and go and buy another Golf
Your happy because you get a new car, VW are happy because they sell a new car
VW are probably keen to sell you their GAP product as it’s vastly over-priced compared to other GAP insurance products available from the likes of ALA, GAPinsurance123 or DirectGAP (there are others too).
I suspect that VW apply their own (large) mark up to their supplying GAP insurers price, hence why it’s so expensive compared to other GAP insurers products. I got GAP cover for less than half the price the VW dealer was trying to sell me their product for.
Also, it’s better to go for a Vehicle Replacement GAP product rather than Return to Invoice, so you don’t lose out if VW have increased the price of their cars, making a new replacement car more expensive than the original sale price paid.