The landscape of automotive finance and insurance has evolved far beyond simple product markups. For modern dealership owners, the most significant driver of long-term financial stability and wealth creation is a properly structured automotive reinsurance program. At its core, dealer reinsurance allows a dealership to form its own insurance company to insure the F&I products sold at the retail level. Rather than allowing a third-party carrier to retain the underwriting profits and investment income, the dealer captures these funds, creating a powerful engine for capital accumulation. However, the effectiveness of this engine depends entirely on the program's structural integrity and transparency. While many dealers view reinsurance as a standard industry practice, there is a profound difference between basic profit-sharing arrangements and sophisticated automotive reinsurance models. Profit-sharing programs often leave the dealer with limited control and a smaller slice of the ...
AutomotiveReinsurance.com explores how reinsurance and F&I programs help dealers build long-term wealth. Led by Michael and Emilia Aufmuth, founders of Elite FI Partners, the blog shares insights on dealer reinsurance, training, and wealth-building strategies. Each post is designed to educate, empower, and guide dealerships toward sustainable profitability and market leadership.