The Complete Guide to Automotive Reinsurance for Dealerships

I want to discuss the basics of how to set up a reinsurance program . Many dealers have heard about reinsurance, but it can seem complicated or out of reach. Once you hit the right contract volume, getting started is straightforward. My goal here is to give you a clear roadmap from building your volume to choosing the right structure so you can move from leaving money on the table to building long-term wealth through reinsurance. Step 1: Building Your Volume (Start Where You Are) Reinsurance works best once your dealership is consistently writing about 20 to 25 service contracts per month. That volume gives you the scale needed for underwriting profits and investment income to build real wealth over time. If you are not there yet, that is okay. Many dealers start with a retro profit-sharing program. This allows you to share in profits immediately while you build toward full reinsurance. It serves as a stepping stone, keeping you engaged with the back end instead of leaving everything t...