The innovative Car2X technology allows it to wirelessly connect with other vehicles and traffic infrastructure.
The German automotive association ADAC tested the new technology and declared it a "technical milestone".
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"This is an exciting area of safety," said Michiel van Ratingen, secretary general at Euro NCAP.
"VW are to be congratulated for making the technology standard in vehicles selling in high numbers like the Golf."
The eight generation Golf is the first car on sale in Europe to come standard with the Car2X technology, which is based on the Wi-Fi p wireless standard.
This type of Wi-Fi is specifically tailored to local communication between vehicles and does not use the mobile phone network which means it provides blanket coverage within the limits of the system.
Within a radius of up to 800m, connected vehicles directly exchange positioning data and information with one another. This allows them to warn each other of danger or make contact with the traffic infrastructure within milliseconds.
ADAC tested the technology by driving a new Golf into eight typical hazardous situations in which a driver, without being warned, would not be able to react at all, or would only be able to react much later.
In all eight situations, the vehicle warned the driver reliably and in time, often even 10 or 11 seconds before the impending accident.
ADAC said the new development was comparable to earlier game changing safety systems such as ABS or airbags.
In the initial development stage introduced with the new Golf, Car2X technology is active at speeds over 80km/h (50mph).
In future, it should also be able to improve safety in city traffic. It also offers major advantages if the car communicates with nearby traffic lights.
Car2X facilitates swarm intelligence in a local environment and improves as more and more participants connect so Volkswagen will add it in other new models. Other car manufacturers will also use it.
Euro NCAP intends to incorporate Car2X technology into its future crash safety ratings.
