How to Evaluate a Dealer Reinsurance Program and Avoid Costly Mistakes

The reinsurance B account is one of the most powerful and misunderstood tools in dealer reinsurance. Once funds move beyond required reserves, dealers gain new opportunities to influence investment performance, liquidity, and long-term wealth. The question is not whether you have a B account. The question is whether it is working as hard as it should.

Most dealer reinsurance programs are never truly evaluated after setup. This practical scorecard helps you rate transparency, control, reporting, product performance, partner involvement, and review discipline so you can identify hidden gaps, ask better questions, and decide whether your structure is really working for you.

NADA creates nonstop conversations about reinsurance, but not all programs are built the same. This guide helps dealers evaluate reinsurance structures, understand true costs, and separate clarity from sales pitch.

Dealer reinsurance can be a powerful long-term strategy, but only when it is understood and managed correctly. This guide explains how car dealer reinsurance works, compares common structures, breaks down hidden fee loads, and outlines volume and risk considerations across automotive, powersports, and RV dealerships. Written to be educational, transparent, and agnostic.

Dealer reinsurance reporting is the key to understanding performance beyond structure. This article explains which reports matter most, how to read loss ratios and reserves, and how transparent reporting supports better long-term decisions.

Most dealer reinsurance programs underperform not because of structure, but because reinsurance is insurance finance, not commission income. This article explains how execution, reserves, admin fees, and continuous training directly impact long-term reinsurance performance.

Dealer reinsurance reserves are often misunderstood. This article explains how A Account and B Account reserves work, why distribution timing matters, and how certain reinsurance structures allow dealers to responsibly borrow against reserves without pulling money out or triggering unnecessary tax consequences.

Switching a dealer reinsurance program can protect long term value or destroy it if done incorrectly. This article explains when it makes sense to switch, when staying put is the better decision, and how dealers should evaluate structure, transparency, and risk before making a change.

Evaluating a dealer reinsurance program requires more than checking participation or volume. Fees, reserve methodology, reporting quality, control, and ongoing support all determine whether a program builds long-term value or quietly erodes profit. This article outlines a practical framework dealers can use to assess whether their current reinsurance structure is truly working.