3 Reasons to Start Your Own Dealership Reinsurance Company
F&I products like extended service contract, GAP, tire and wheel protection, and battery replacement, among others, are designed to help owners maintain their vehicle. In a typical scenario, a third-party provider offers these to a dealership's customers. Premiums go to the provider. But dealership reinsurance, premiums go to the dealership. And underwriting profits go to the dealership as well.
Why create your own dealership reinsurance company
Dealerships know that the F&I department is the backbone of the business. Without it, vehicle sales won't push through, and customers won't keep coming back for maintenance checks, repairs, and parts replacements; thanks to the F&I products that you offered. But here's the caveat; underwriting profits from F&I products go to the provider. The dealership typically earns a measly commission from every sale.
But with dealership reinsurance, you, the dealer, will get the underwriting profits. Here are a few more reasons to go into the reinsurance business:
1. Diversify your portfolio
With the money earned from underwriting profits, you can diversify your portfolio. You can invest the money in equities, for instance, or you can use it to expand the business or start another business.
2. Your profits are assured even during challenging times
With dealerships, sales can be unpredictable given the ever-changing market trends. This means that dealerships without any backup business may not be able to survive their dry season if it keeps happening. But with your own reinsurance company, you are assured of profits as soon as contracts mature. Provided, of course, that your accounts and finances are managed properly.
3. You boost customer satisfaction
This is one of the biggest reasons for getting into dealership reinsurance. With reinsurance, you have full control of your F&I department. This means you won't have to wait for a third-party provider for the after-market products packaged for each specific customer. You also won't have to negotiate on their behalf. Plus, you are in control of the claims process, which means you are the only deciding entity for claims. You won't have to hold your breath anymore, hoping the provider will approve your customer's claim.
Torque Group Dealership Reinsurance Program
Are you ready to elevate your customer experience? Offer them the best F&I products through your reinsurance program. Call Torque Group today at (800) 859-0590 to learn more about their reinsurance program and how it can boost your business and improve customer service at the same time.
