The Complete Guide to Automotive Reinsurance for Dealerships

Every year after NADA, the same realization sets in for many dealers. Not while they’re walking the floor, but days or weeks later—back at the store, reviewing notes, brochures, and proposals. That’s when the thought hits: I wish I had asked more questions. Not because reinsurance doesn’t work. Not because vendors were dishonest. But because conferences are designed for momentum, and reinsurance decisions require clarity, time, and reflection. When conversations move quickly, important questions often get left behind. One of the most common regrets dealers express is not asking for a full breakdown of fees. Most reinsurance discussions focus on upside—retained premium, ownership, long-term profit—but gloss over how much friction exists between premium and profit. Administrative fees, ceding fees, claims handling costs, and layered expenses can significantly affect long-term outcomes. The issue isn’t that fees exist; it’s not fully understanding how those fees compound over time. A st...