How to Evaluate a Dealer Reinsurance Program and Avoid Costly Mistakes

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.

Not every F&I product belongs in a dealer reinsurance program. Product selection plays a critical role in long-term performance, reserve stability, and profit distribution. This article explains which F&I products typically perform well in reinsurance, which introduce unnecessary volatility, and how disciplined product mix decisions support sustainable results.

Dealer reinsurance allows dealerships to move beyond transactional F&I income and participate in long term underwriting profit. This foundational guide explains how reinsurance works, outlines common structures such as retro programs, captives, and dealer owned warranty companies, and highlights why transparency, product selection, and structure matter. Built for dealers seeking clarity, control, and sustainable profitability.