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What Does Cnac Insurance Cover

What Does CNAC Insurance Cover?

When purchasing a vehicle, it is essential to consider the various insurance options available to protect your investment. One popular choice among car buyers is CNAC insurance. CNAC, which stands for Credit Acceptance Corporation, is a leading provider of auto financing solutions. In addition to financing, CNAC also offers insurance coverage to its customers. This article will explore what CNAC insurance covers, providing valuable insights into the benefits and limitations of this type of coverage.

Understanding CNAC Insurance

CNAC insurance is designed to provide financial protection to vehicle owners in the event of accidents, theft, or other unforeseen circumstances. It is important to note that CNAC insurance is not a standalone policy but rather an add-on to the primary auto insurance coverage. CNAC insurance is typically offered to customers who finance their vehicles through CNAC, ensuring that their investment is adequately protected.

Key Coverage Areas

While the specific coverage may vary depending on the policy and state regulations, CNAC insurance generally includes the following key areas:

  • Collision Coverage: This coverage pays for damages to your vehicle resulting from a collision with another vehicle or object, regardless of fault. It helps cover the cost of repairs or replacement.
  • Comprehensive Coverage: Comprehensive coverage protects against non-collision incidents such as theft, vandalism, fire, or natural disasters. It provides financial assistance for repairs or replacement of the vehicle.
  • Liability Coverage: Liability coverage is essential and typically required by law. It covers bodily injury and property damage caused by the insured driver to others involved in an accident.
  • Medical Payments Coverage: This coverage helps pay for medical expenses resulting from injuries sustained in an accident, regardless of fault. It can cover hospital bills, doctor visits, and other related costs.
  • Uninsured/Underinsured Motorist Coverage: This coverage protects you if you are involved in an accident with a driver who does not have insurance or has insufficient coverage. It helps cover medical expenses and property damage.

Limitations and Exclusions

While CNAC insurance provides valuable coverage, it is important to be aware of its limitations and exclusions. Some common limitations include:

  • Deductibles: CNAC insurance policies often require policyholders to pay a deductible before the coverage kicks in. The deductible amount can vary, and it is important to understand your financial responsibility in the event of a claim.
  • Policy Limits: CNAC insurance policies have coverage limits, which determine the maximum amount the insurance company will pay for a claim. It is crucial to review these limits and ensure they align with your needs and expectations.
  • Exclusions: CNAC insurance may have specific exclusions that are not covered by the policy. Common exclusions include intentional damage, racing, and using the vehicle for commercial purposes. It is essential to carefully read the policy documents to understand what is not covered.

Case Study: Sarah’s Experience with CNAC Insurance

To illustrate the benefits of CNAC insurance, let’s consider Sarah’s experience. Sarah recently purchased a used car and financed it through CNAC. She opted for CNAC insurance to protect her investment. A few months later, Sarah’s car was involved in a collision with another vehicle. The accident resulted in significant damage to her car.

Thanks to her CNAC insurance coverage, Sarah was able to file a claim and have her vehicle repaired without incurring substantial out-of-pocket expenses. The collision coverage included in her CNAC insurance policy covered the cost of repairs, ensuring that Sarah’s financial burden was minimized.

Frequently Asked Questions (FAQ)

1. Is CNAC insurance mandatory for all CNAC customers?

No, CNAC insurance is not mandatory for all CNAC customers. However, it is highly recommended to protect your investment and ensure financial security in case of accidents or other unforeseen events.

2. Can I choose my own auto insurance provider instead of CNAC insurance?

Yes, you have the option to choose your own auto insurance provider. However, if you finance your vehicle through CNAC, they may require proof of insurance to ensure that your vehicle is adequately protected.

3. How do I file a claim with CNAC insurance?

To file a claim with CNAC insurance, you should contact the insurance provider directly. They will guide you through the claims process, including providing the necessary documentation and information.

4. Can I customize my CNAC insurance coverage?

While CNAC insurance offers standard coverage options, you may have the opportunity to customize your coverage to some extent. It is recommended to discuss your specific needs with a CNAC insurance representative to explore available options.

5. Does CNAC insurance cover rental cars?

CNAC insurance typically does not cover rental cars. However, it is advisable to review your policy documents or consult with a CNAC insurance representative to confirm the specifics of your coverage.

6. Can I transfer my CNAC insurance to another vehicle?

Yes, you can transfer your CNAC insurance to another vehicle. However, it is important to inform CNAC and update your policy accordingly to ensure continuous coverage.


CNAC insurance provides valuable coverage to vehicle owners who finance their vehicles through CNAC. It includes collision, comprehensive, liability, medical payments, and uninsured/underinsured motorist coverage. While CNAC insurance offers financial protection, it is essential to understand its limitations, such as deductibles, policy limits, and exclusions. By considering the benefits and limitations of CNAC insurance, car buyers can make informed decisions to protect their investment and ensure peace of mind on the road.