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 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.