Possibly because it's the only time VW know the state of the car - $1,500 is pretty good for a factory extension.
The aftermarket insurance policies (let's not pretend they're anything but) are usually a fair bit dearer but can at least usually be bought at any time.. but good luck getting coverage on them for anything major going wrong. I'd save the coin, self insure and work on the basis of a goodwill gesture if it's a DSG or expensive engine part in that 3-5 year window.
And obviously both are a complete waste if anyone is tuning etc.
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