CNA National Market Research Report
Company Overview
Name
CNA National Warranty Corporation (originally Western National Warranty Corporation)
Mission of the Company
CNA National aims to produce maximum profitability for automobile dealers, provide complete security through solid insurance underwriting, and offer services that are simple to use yet comprehensive enough to satisfy the varying needs of the automotive marketplace.
Year Founded and Founders
Founded in 1982 by Paul and Judy Askos.
Key People
- Travis Long: Appointed as Regional Vice President of Sales for the south-central region of the U.S.
Headquarters
Scottsdale, Arizona, USA
Number of Employees
Over 300 employees
Revenue of the Company
As of 2023, CNA National has paid over $712 million in dealer distributions since its inception.
Company Reputation
- Known for being the industry's top provider with over 40 years of service.
- Recognized by the dealers' choice award for 18 consecutive years.
- Endorsed affinity partner of the American International Automobile Dealers Association (AIADA) since 1995.
Overview
CNA National operates as an independent, autonomous subsidiary of CNA Financial Corporation, one of the largest insurance entities in the U.S. Their business philosophy is to be the best in the industry rather than the biggest.
Products
CNA National offers a broad portfolio of products primarily designed for vehicle service contracts and related automotive financial and insurance services.
Vehicle Service Contracts
The primary product offered; designed to cover costs of mechanical breakdowns beyond standard factory warranties. They provide four levels of coverage, from basic powertrain to exclusionary.
- Key Features:
- Coverage across the U.S. and Canada
- No exclusions for normal wear and tear
- Multiple deductible options
- Roadside assistance, rental car, travel, and lodging reimbursement services
Guaranteed Asset Protection (GAP)
Administered as addendums to vehicle loans to cover outstanding balances in case of total loss not covered 100% by insurance.
- Key Features:
- Reduces or eliminates outstanding loan balances during total vehicle loss events
Tire & Wheel Protection
Covers costs related to tire and wheel damage caused by road hazards.
Certified Warranty
Short-term warranty coverage options for certified pre-owned vehicles through select auto dealers.
Lifetime Limited Powertrain Warranty & Wrap
Allows for extended coverage by adding specific service contracts that expand beyond limited warranty terms.
Ancillary Suite of Products
Includes offerings like tire and wheel options, paintless dent repair, windshield products, and protection services for the vehicle's exterior, interior, and more.
Recent Developments
New Products and Features
1. EV-Specific Service Contract: Launched on May 1, 2023, designed for battery-electric vehicles which won the 2024 MOTOR Top 20 Award from MOTOR Information Systems.
Financial Developments
- June 2023: Returned over $28 million to dealers, totaling over $712 million from inception.
- 2022: Distributed $32.6 million, marking the inception-to-date value near $685 million.
Partnerships and Influential Relationships
- Affinity partner of AIADA since 1995.
Recognition
- Celebrated its 40th anniversary in January 2022.
- Regular recipient of service excellence awards and rated as top service contract provider.
This report highlights CNA National's robust product portfolio, consistent product innovation, and strong market position within the vehicle service contract sector. CNA National continues to demonstrate service excellence and a customer-driven approach backed by a significant financial foundation and strategic industry partnerships.
