How to Evaluate a Dealer Reinsurance Program and Avoid Costly Mistakes

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.

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.