CNA National Dealer Learning


Module 1: EV Education

Federally Mandated Coverage

  • Since 2016, the United States government has required all electric vehicle manufacturers to provide warranty coverage on the propulsion battery for a minimum of 8 years and 100,000 miles.
  • Beginning model year 2030, the state of California will extend the required warranty coverage to 10 years and 150,000 miles.
  • Some manufacturers have chosen to extend their warranty coverage.
    • For example: Kia and Hyundai have extended their coverage to 10 years and 100,000 miles.
two workers looking at EV battery

Did You Know?

EVs don't have to be charged at manufacturer-specific charging stations.

EVs can be charged at any charging station with the correct plug type or with the use of an appropriate charging adapter.

EV charger types

Did You Know?

All new EVs must have at least an 8-year/100,000-mile warranty on their propulsion battery.

After a government mandate was introduced in 2016, all factory warranties for propulsion batteries are AT LEAST 8 years and 100,000 miles, but some manufacturers and state governments provide expanded coverage.

Example of EV manufacturer coverage OEM example of going beyond 8 yrs and 100,000 miles

Did You Know?

EVs still require regular vehicle maintenance.

EVs require regular maintenance to ensure proper functioning of the vehicle. Examples include:

  • Suspension and steering components
  • Auxiliary (12V) battery replacement
  • Wiper blades
  • Air-conditioner servicing
  • Cabin air filters
  • Brakes
  • Tire replacement and rotations
EV on lift of shop

ICE VS EV

EV vs ICE
click to enlarge

Internal Combustion Engine (ICE)

  • Nearly 100 traditional ICE components will be eliminated in EVs.
  • EVs do not require a fuel system or exhaust system, which eliminates their exhaust emissions.

Electric
Vehicle (EV)

  • EVs will introduce over 40 brand-new components.
  • EVs will carry over some familiar components from ICE vehicles like suspension and steering systems.
Full Automotive News article can be found here: Automotive News

Upcoming OEM EV Launches

federally mandated coverage

Model forecast is based on data from Q4 2022 and is subject to change.

 
 
 

Knowledge Check

Question 1: Can EVs only be charged at manufacturer-specific charging stations?

Yes, EVs must be charged at their manufacturer-specific charging station No, EVs can be charged at any charging station with the correct plug type or with the use of a correct charging adapter

Question 2: Are all manufacturer propulsion battery warranties 8 years/100,000 miles?

Yes, all factory warranties for propulsion batteries are 8 years/100,000 miles without any exceptions No, all factory warranties for propulsion batteries are AT LEAST 8 years/100,000 miles per federal mandate, but some manufacturers have gone beyond the federal mandate to offer expanded coverage
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Next Module

Module 2: Contract Review (Part 1)


Section 1 - Program Coverage

deductible
  • Offers 4 tiers of protection to meet the needs of the EV buyer.
  • Does not contain any surcharges. More info on custom suspension, snowplow, and commercial use coming up.
  • Offers both standard and disappearing deductible options.

Section 4 - Your Coverage

Standard Protect

Standard Protect offers protection on stated components of the Electric Vehicle that are listed on the contract. Some of the key components covered include:

  • E-Motor
    • Turns electrical energy into mechanical energy to turn the wheels
  • Power Thermal Management
    • Ensures optimal temperature “under the hood”
  • Inverter
    • Sends power to the electric motors
  • DC to DC Converter
    • Converts the power for storage in the propulsion battery

Premier Protect

Premier Protect offers protection on all the components covered under Standard Protect plus additional stated components that are listed on the contract. Some of the key components covered include:

  • Battery Management System
    • Monitors the battery's performance
  • Charging Port
    • Port where the charging cables plug in and deliver power to the vehicle
  • Onboard Charger
    • Receives the charge and distributes the power
  • High-Voltage Power Cables
    • Distributes power from the charger to the other components of the vehicle

Section 4 - Your Coverage

Elite Protect

Elite Protect is an exclusionary coverage tier that provides protection on ALL PARTS of the Electric Vehicle except those specifically excluded in Section 10 of the contract. Elite Protect does NOT provide coverage for the propulsion battery.

Elite Protect with Battery

Elite Protect with Battery is an additional exclusionary coverage tier that provides protection on ALL PARTS of the Electric Vehicle except those specifically excluded in Section 10 of the contract. Elite Protect with Battery DOES provide coverage for the excessive degradation of the propulsion battery.

elite protect

Section 4 - Your Coverage

The highlighted components showcase some of the brand-new components used to power electric vehicles, as outlined in our EV contract.

sample coverage

Section 4 - Your Coverage

Contract Language:

coverage continued

Terms as stated in our EV contract.

Section 4 - Your Coverage

ev brochure

Section 6 - Definitions

battery degradation
  • Is battery failure covered under the EV VSC?
    • No, Elite Protect with Battery offers coverage for Battery Degradation but not failure.
      • CNA National built our coverage to ensure we clearly defined what was covered and what wasn't. Our definition matches how the manufacturer defines degradation.
EV definition
  • Are Hybrids vehicles covered under EV VSC?*
    • No, the EV VSC was intentionally built specifically for Electric Vehicles.

Hybrid and Plug-In Hybrid vehicles are eligible for VSC coverage under Z2.

 
 
 

Knowledge Check

Question 1: How many tiers of coverage include the propulsion battery?

1 2 None All tiers

Question 2: Which types of coverages are available under EV VSC?

Stated Exclusionary Stated and Exclusionary
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Next Module

Module 3: Contract Review (Part 2)


Section 5 - Additional Benefits

What benefits are new for Electric Vehicles?

What is Limp Along Coverage?

Limp Along Coverage is a portable charging service that will provide contract holders with up to $100 of mobile charging if the propulsion battery is depleted while on the road. The vehicle will be towed via flatbed to the nearest charging facility if Limp Along Coverage is not available in the area.

EV getting charging service
limp along coverage

Section 5 - Additional Benefits

EV tow flatbed

Why do Electric Vehicles require a Flatbed for towing?

Electric Vehicles must be towed using a flatbed to prevent damage to the propulsion battery located under the vehicle.

ev towing

Section 5 - Additional Benefits

What other benefits are available for EV VSC?

Trip Interruption

trip interruption

Rental Car

rental

Flat Tire and Lock-out Assistance

flat tire

Section 5 - Additional Benefits

Ride Share:

The EV VSC provides coverage for ride share use under the following parameters:

  • The Electric Vehicle must be titled in a personal name and not in the name of a business or entity.
  • The Electric Vehicle can not be operated by multiple, non-related individuals.
    • Refer to section 10.C.E. of the contract for complete details.

Sports Package:

The EV VSC provides Sport Package coverage as well:

sport package

Section 10 - Non-Covered Parts

noncovered parts

The EV VSC does not cover any components found outside of the vehicle, such as the following:

noncovered components

Autonomous Driving Exceptions

ev parts

The EV VSC provides coverage for the propulsion battery if the Elite Protect with Battery tier is chosen. The EV VSC does not provide coverage for starter/SLI batteries under any tier.

Section 10 - Non-Covered Parts

continued non-covered parts continued non-covered parts

Bidirectional Charging Exceptions

Noncovered parts:

Any failure or consequential damage due to bidirectional charging, a power surge, or other power grid failure

bidirectional charging

Section 12 - Transfers

Transfers:

transfers

Section 13 & 14 - Cancellations

Section 13
Section 14
 
 
 

Knowledge Check

Question 1: What is Limp Along Coverage?

Flat-bed towing service Portable charging service Tire replacement service Lock out assistance

Question 2: Does the EV VSC cover rideshare?

Yes, always Yes, if terms of the contract are met No
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Next Module

Module 4: Eligibility


Eligibility Criteria

Examples of ineligible vehicle criteria:

  • Fuel types other than battery electric vehicles
  • High performance/value vehicles or trims
  • Vehicle weight over 12,000 lbs
  • Gray market vehicles
  • Vehicles manufactured for special services
  • Incomplete models
  • Models with aftermarket parts, software, or kits
eligible vehicles

Please reference the Ineligible Vehicles List for a full list for specific model exclusions [Form 9246 (12/22)].

Eligibility Criteria - Fuel Types

Eligible Fuel Types:

  • Only Battery Electric Vehicles (BEVs) are eligible.

Ineligible Fuel Types:

  • Hybrid vehicles are not eligible.
  • Plug-In Hybrid vehicles are not eligible.
  • Fuel Cell/Hydrogen vehicles are not eligible.
  • ICE vehicles are not eligible.
fuel types

*Hybrid, Plug-In Hybrid, and ICE vehicles are eligible for VSC coverage under Z2.

Eligibility Criteria - Age Rating

eligible tables

Eligible Models

eligible EV models

Please reference the Ineligible Vehicles List for a full list of specific model exclusions [Form 9246 (12/22)].

Program Eligibility

Can Z2 contracts continue to be written for EVs?

  • EVs will no longer be eligible for the Z2 VSC after launching the EV VSC.

Are EVs eligible for the Certified Pre-Owned (CPO) program?

  • EVs will not be eligible for CPO at launch.

Are EVs eligible for limited warranty programs?

  • EVs will not be eligible for limited warranty programs at launch.

Are EVs eligible for ancillary programs?

  • Yes, most EV models are eligible for all ancillary product offerings.
EV VSC

Please reference the Ineligible Vehicles List for a full list for specific model exclusions [Form 9246 (12/22)].

 
 
 

Knowledge Check

Question 1: Is bidirectional charging covered under the contract?

Yes Yes, but only the specific components that are utilized for bidirectional charging No

Question 2: Is autonomous driving covered under the contract?

Yes Yes, but only the specific components that are utilized for autonomous driving No
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