Dealer Reinsurance is a separate business owned by you the dealer, to hold premiums for F&I products that are given or sold to your customers. Reinsurable products include Limited Warranties, Vehicle Service Contracts, Guaranteed Asset Protection, Collateral Protection Insurance, Tire & Wheel and more.
Why should I own a Reinsurance Company as a dealer?
Reinsurance puts you in a position to be a better and more profitable dealer, all while building long term wealth. Mechanical breakdowns and uninsured losses have a big impact on your bottom line, however with Reinsurance these issues can be turned into positive profitable avenues for the dealership. Why utilize a third-party insurance company when you can have your own program and retain 100% of your underwriting profits?
What does Reinsurance Cost?
The cost of Reinsurance is dependent on the products and programs being reinsured. Each year there is an annual fee to manage your Reinsurance Company and costs associated with the sale of each product.
Do I need a 3rd Party Trust for my Reinsurance Company?
Yes, a third-party trust is essential for keeping your Reinsurance Company in compliance with the IRS Tax Code. The third-party trust gives you full access and visibility to funds- but ensures reserve funds are maintained and calculated properly for payment of future claims. Programs without a Trust account put you and your dealership at risk of non-compliance.
Does my money go to an offshore account?
Reinsurance Premiums do not go to an offshore account, all premiums and reserve funds are held at one of our participating bank partners within the United States.
Can I take money out of my Reinsurance Company?
Yes, you can take money out of your Reinsurance company. There are two options: o A Loan – In which you will pay back your reinsurance company with monthly principal and interest payments. o A Distribution – In this case, you can distribute all earned funds and will only pay the qualified dividend tax rate.
Can I invest the money in my Reinsurance Company?
Absolutely, we prefer that you put your money to work and keep making more. We can help direct you to one of our strategic investing partners or assist in working with your current investment manager.
How many cars do I need to sell per month to participate in Reinsurance?
If you sell 20 - 25 Vehicles per month, you can participate in Reinsurance and offer your own F&I products to your customers.
What state does Preferred Dealer Solutions operate in?
Preferred Dealer Solutions works with dealers nationwide in the automotive industry including Buy Here Pay Here (BHPH), Lease Here Pay Here (LHPH), Independent Retail Dealers and Independent Finance Companies. We are proud to assist hundreds of dealers and reinsurance companies from coast to coast.
Why choose Preferred Dealer Solutions?
Over the years Preferred Dealer Solutions has been able to assist hundreds of dealers to increase their profitability and build wealth through our customized Reinsurance and F&I programs. Preferred Dealer Solutions is committed to providing the transparent and compliant service’s dealers and their customers deserve. Ensuring growth and profitability through our programs while creating customer loyalty from efficient claims processes is what sets us apart.
