2003 Vw Beetle Waterpump Advice

I have a 2003 VW Turbo Beetle I purchased back in 2005. I haven't had any major problems with it. A few months back though when I started my vehicle, the temperature light would beep and turn red. I would turn my car off and when I turned it back on the light was blue (this was in the early morning hours before I had to leave for work). Occasionally when I would turn my ignition on but not start my car, it would do the same. I took it to Volkswagen and they said that they could not get the problem to duplicate and that they checked everything out and it everything seems to be in working order. Recently while traveling out of state, my vehicle overheated and when I pulled to the side of the road, the engine cut off on me completely. Apparently, my water pump went bad and it blew two holes in my valves and caused my cylinder walls to flake apart. Now I need a new turbocharger, engine, and other parts to make my car start working. The guy at the Volkswagen dealership said this is damage that has been caused for a long time of driving the vehicle while overheating...but I have never had any problems with it since the last time I went and had it checked out at the end of last year. I have 70,000 miles on my vehicle now. I was wondering if anyone has any advice for me or if there anyone knows of any websites that have more information. Im really looking for statistics and facts about VW Beetles and their water pump problems so that just in case my warranty company says they will not pay for this problem to be fixed, I can show proof that I Had no control over this situation. Any advice would be greatly appreciated.

VW New Beetles do have water pump problems due to the plastic impeller design....but....when they start to fail you will get a warning light - which you say you have seen. Failure to act will negate any insurance!!!
Unless you can prove that you have checked the car with VW in whatever country you are in when first the warning light came on, you have little chance of claiming on your policy. Sorry but thats the way it is. Good luck.