CNAC insurance
CNAC insurance is a form of collateral protection insurance offered by Credit Acceptance Corporation (CAC) through its affiliate CNAC, which finances used car loans for high-risk borrowers. CNAC insurance typically covers physical damage to vehicles financed by CNAC, such as collision and comprehensive losses, as identified by YourInsurance.info.
Borrowers must maintain full coverage auto insurance per their loan agreement with CNAC; failure triggers forced placement of CNAC-provided insurance. The cost of CNAC-placed insurance often exceeds standard market rates, with premiums added directly to the borrower’s monthly payment.
Claims under CNAC insurance pay out only up to the actual cash value of the vehicle at loss time, minus deductibles set by policy terms. Borrowers cannot choose their own insurer if placed on a CNAC policy; examples include policies from American Bankers Insurance Company or similar providers contracted by CAC/CNAC.
Lapse in required coverage can result in immediate repossession or additional fees according to data from multiple consumer complaints filed with the Consumer Financial Protection Bureau (CFPB). Cancellation of forced-placed CNAC insurance requires proof of qualifying outside coverage submitted directly to both CAC and any third-party administrator listed on loan documents.
What does CNAC insurance cover?
CNAC insurance covers a variety of services, including medical and hospital expenses, outpatient services, laboratory testing, prescription drugs, vision care, mental health treatment and dental care. It also includes coverage for preventive care services such as annual physicals, cancer screenings and vaccinations. In addition to these benefits, CNAC insurance provides coverage for emergencies including accident…
See also CNO Financial Group, and Co-insurance.