Scottsdale, Ariz.— As of May 1, CNA National Warranty Corporation now offers a vehicle service contract (VSC) designed just for battery-electric vehicles.
For the past five years, electric vehicles (EVs) have been eligible for CNAN’s traditional VSC. The wealth of claims data gathered on these vehicles makes the company uniquely qualified to develop this specialized contract, ensuring that the right level of coverage and benefits is being offered.
“Our EV VSC is a groundbreaking product,” said Joe Becker, president and CEO of CNA National. “We didn’t have a mold or guidebook to follow. This was developed from the ground up using our proprietary data, claims and loss expertise, and in-depth industry research. For decades, we’ve been recognized by dealers as the industry leader in service contracts. Our new EV program is further proof of our ability to lead and to demonstrate what it means to deliver quality products and services to dealers and their customers.”
This innovative contract is more than simply a VSC for gas-powered vehicles with a paragraph added to cover the propulsion battery. CNAN identifies and covers parts and components found in electric vehicles, including the battery, and removes items that are not part of an EV. Plus, contract holders receive benefits specific to EVs, such as flatbed towing and limp-along roadside assistance. These features directly address the top-three concerns consumers have about purchasing an electric vehicle, which are cost of repairs, battery protection and range.
Researching and developing this product has made CNA National an industry expert for EV coverage. Although these vehicles have been on the market for many years, they are built with relatively new technology that varies from one manufacturer to another. To help dealers educate their employees, CNAN created its first web-based training program focusing on the company’s product and the unique aspects of EVs.
“Education is a core part of our corporate philosophy,” said Todd Sands, senior vice president of sales for CNA National. “It’s also a key part of any product launch, including this one. EVs are no longer specialty vehicles. Both new and used EVs are being sold today, making it more important than ever for dealerships’ sales and finance managers to be knowledgeable about these vehicles and the products that protect them.”
As part of its research, CNAN has been tracking manufacturers’ release schedules of upcoming and proposed electric vehicles. Over the next five years, Americans are expected to see more than 100 new makes and models come to market.
“We created our EV contract with an eye to the future,” said Sands. “With so many new vehicles expected in a relatively short time frame, we are in a strong position to help dealers capitalize on this growing segment.”
About CNA National Warranty Corporation
Founded in 1982 and headquartered in Scottsdale, Arizona, CNA National (CNAN) is recognized as a leader in the vehicle service contract industry. The company offers a choice of reinsurance structures (both CFC and NCFC), as well as GAP coverage and ancillary products, including tire-and-wheel protection. CNAN has been named “Best Provider” in Auto Dealer Today’s Dealers’ Choice Awards for 18 consecutive years (2005-2010, 2012-2022 for service contracts, and 2011-2013, 2017 and 2020 for reinsurance). In addition, CNAN was the first and one of only two service contract companies recognized for “Highest Overall Dealer Satisfaction” by J.D. Power and Associates.* CNAN’s service contract program has had the exclusive endorsement of the American International Automobile Dealers Association (AIADA) since 1995. It is a wholly owned subsidiary of CNA, one of the nation’s oldest and largest insurers with over $55 billion in assets. Learn more at CNANational.com.
*J.D. Power and Associates 2003 Dealer Service Contract Satisfaction StudySM based on 5,053 dealer evaluations, www.jdpower.com