A Guide to Automobile Dealer Reinsurance

If you’ve never run a reinsurance company, you’re not alone. But if you’re like many automobile dealers, you may find it worth learning about, because of its potential benefits to not only you as a businessperson, but also to your and your family’s finances.

In this guide, we present some information on the basics of reinsurance to get you up to speed, and also explain some of the ways that your reinsurance company can support your overall financial and investment strategy. We also discuss several of the most common pitfalls and mistakes dealers make in their reinsurance companies, and explore some of the important things to know about your investment policy statement (IPS).

This guide is intended to give you a broad understanding of what reinsurance can make possible, as well as some of the specific topics you’ll want to discuss with your agent, financial advisor and accountant. We hope that you’ll find these explanations clear and useful in deciding whether to establish your own reinsurance company.

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