How to Evaluate a Dealer Reinsurance Program and Avoid Costly Mistakes

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.

Many dealer reinsurance programs can be improved without being replaced. This article explains how side by side comparisons, administrator changes, and execution improvements can upgrade performance while preserving reserves and long term value.