Traditional Reinsurance:
Many car dealers do not form their own reinsurance companies because they are not familiar with the benefits or are fearful of the risks. A dealership typically sees an increase in profits after the dealer forms a reinsurance company. Service and Parts business increases as well since the vehicle service contract generally requires local customers to return to the dealership for the warranty work. In addition, F&I profits and product penetration goes up since the dealer sees the premium dollars accumulating into the company with auto dealer reinsurance programs.
The reinsurance company engages a third-party administrator to create the program, set up the corporation, administer the claims, provide accounting services and prepare tax returns. Most importantly, the third-party administrator will send in professional F & I consultants on a weekly or monthly basis to train your staff and monitor your programs.
How You Benefit:
CAPTURE UNDERWRITING PROFITS
Underwriting profit is the difference between premium dollars collected and claims paid out. When you own a reinsurance company you get to capture the underwriting profit.
CAPTURE INVESTMENT INCOME
Your premium dollars are invested to maximize earnings.
F&I PRODUCT CUSTOMIZATION
When you're able to customize the terms and coverages you will improve profitability of your F&I department and reinsurance company.
INCREASE CUSTOMER SATISFACTION
When you own a reinsurance company you are in control of each and every claim. Keeping your customers happy will help you increase customer loyalty and expand your business further.
Protective DOWC
A Protective DOWC program allows you to own your own warranty company without the challenges of managing the administration--providing more control, complete transparency and greater wealth building potential.
You have the opportunity to capture the highest percentage of underwriting profit and investment income available in the dealer market.
It doesn't matter what dealer participation program you currently have--when you choose a Protective DOWC program, you have the potential to earn more.
How You Benefit:
MORE CONTROL
Get more control of everything from F&I product names, coverages and rates to the cash that comes through your doors.
MORE TRANSPARENCY
Know where every dollar is every day with no premium or excise taxes, ceding fees, annual maintenance fees, claims fees or "just because" fees.
MORE WEALTH
Enjoy all the advantages of owning your own warranty company, including a greater overall return on premium capital.
MORE TAX CERTAINTY
You will have the opportunity for significant federal income benefits with no uncertainty.
Capture More Profit & Control
Own the underwriting profits, investment income, and customer experience by creating a reinsurance structure that gives your dealership greater financial control and long-term growth potential.
Build Wealth With Transparency
Whether through traditional reinsurance or a Protective DOWC program, dealers gain increased transparency, customizable F&I products, and a wealth-building strategy designed to maximize profitability and tax advantages.
With the right reinsurance structure in place, your dealership can transform F&I from a short-term profit center into a long-term wealth-building engine. By increasing control, transparency, profitability, and customer retention, you create a stronger foundation for sustainable growth and lasting financial success.
