This month, CNA National Warranty Corp. started offering a vehicle service contract designed for battery-electric vehicles.
For the past five years, electric vehicles have been eligible for CNA National’s traditional VSC. The wealth of claims data gathered on the vehicles makes the company uniquely qualified to develop a specialized contract, ensuring that the right level of coverage and benefits is being offered.
“Our EV VSC is a groundbreaking product,” said CNA National President and CEO Joe Becker. "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.”
The innovative contract is more than simply a VSC for gas-powered vehicles with a paragraph added to cover the propulsion battery. CNA National 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. Those 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 the product has made CNA National an industry expert for EV coverage. Although the 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, CNA National 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 Senior Vice President of Sales Todd Sands. “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, CNA National has been tracking manufacturers’ release schedules for upcoming and proposed EVs. 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,” Sands said. “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.”