Doesn't sound like a good deal to me. I think the VW one gives you 3 years for £250? What you have been offered is the dealers version of this but may cover items consumables like brake pads? To give you some idea my Mk5 is on just over 40k miles and has the original brake pads etc but then I guess it depends on the abuse you give them.
Just the other day I was offered a VW backed service plan from the dealers of £300 for two services and 2 MOT's. Unfortunately I paid around £400 for my 4 year 40k service (the big one) just a few months ago - this service plus one more would have been covered under the scheme. The next two services are relatively cheap
