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.

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.

Dealer reinsurance success is not determined by participation alone. Hidden fees, reserve assumptions, reporting quality, and control over structure all play a critical role in long-term performance. This article explains why two dealerships with similar volume can experience very different outcomes and how structural decisions quietly compound over time.

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.