DOWC

    The Protective DOWC Program
    A superior dealer owned warranty company

    A DOWC or Dealer Owned Warranty Company is typically the most profitable profit participation program available for large dealers and groups.

    You may be paying hundreds of thousands of dollars in unnecessary reinsurance fees.

    Resources:

    What, Exactly, is a Dealer-Owned Warranty Corp?

    Law Changes Affecting Reinsurance Companies.

    Curious what a DOWC could do for you? Fill out the form below to generate a complimentary DOWC Proforma.

    What is a Protective DOWC Program?

    Simply put: It’s a superior participation program.

    With a Protective DOWC (Dealer Owned Warranty Company) program, the dealer owns a warranty and service contract company without the challenges of administration. Through the benefit of lower fees and higher investment returns, a Protective DOWC program can capture the highest percentage of underwriting profit and investable assets in relation to other dealer participation programs, while our team handles the day-to-day operations.

    Compare the Protective DOWC program to other F&I participation programs – and soon you’ll see there’s no comparison. Protective Asset protection doesn’t just offer a DOWC program. We invented it. Using a consultative approach, our specialists work with you to understand the goals of your program and help design a solution to help maximize the potential of your F&I program.

    Significant Tax Efficiencies Without Additional Fees

    Because a Protective DOWC is taxed as a P&C insurance company, shareholders realize federal tax efficiencies in addition to the even more important byproduct of enhancing the customer experience and creating customer loyalty:

    • Potentially tax-free underwriting profit for a significant number of years, with proper planning and management
    • Because a Protective DOWC is a U.S.-based company, there are no tax risks associated with overseas funds
    • Because a Protective DOWC is taxed as an insurance company under federal tax laws, policy acquisition costs can be written off from the first year of operations
    • Corporate dividends are treated as qualified dividends and are taxed at the capital gains rate

    A Protective DOWC program also increases the bottom line because there is only one all-in administration fee. There are no ceding fees, annual maintenance fees, loss adjustment fees, claims fees, run-off fees, non-disclosed fees, or “just because” fees.

    Call the Shots and Know Where Every Dollar Is Every Day

    Similar to ownership of a dealership, a Protective DOWC program belongs to the shareholders. So all the decisions are made by the management team:

    • Pick the products. Select the F&I products that work for the dealership and its customers, from service contracts and pre-paid maintenance plans to road hazard, theft deterrent, and paint and fabric protection, among others.
    • Choose investments. Ownership or the management team decides how to invest money with a Protective DOWC program. And they don’t pay anyone an extra fee to invest it on their behalf.
    • Invest money immediately. Money starts earning interest right away. As the administrator, we don’t hold onto it. No one touches the money but ownership.

    In addition to decision-making authority, a Protective DOWC program is the only dealer participation structure that offers total financial transparency. Forget about reinsurance cession statements or quarterly reports. The management team has 24/7 access to the company’s financial information, including balance sheets and income statements.

    That means there are no surprises. Only better income opportunities.

    Optimize Income Without Being the Contractual Obligor

    Simply put: It’s a superior participation program.

    With a Protective DOWC (Dealer Owned Warranty Company) program, the dealer owns a warranty and service contract company without the challenges of administration. Through the benefit of lower fees and higher investment returns, a Protective DOWC program can capture the highest percentage of underwriting profit and investable assets in relation to other dealer participation programs, while our team handles the day-to-day operations.

    Compare the Protective DOWC program to other F&I participation programs – and soon you’ll see there’s no comparison. Protective Asset protection doesn’t just offer a DOWC program. We invented it. Using a consultative approach, our specialists work with you to understand the goals of your program and help design a solution to help maximize the potential of your F&I program.

    Play the video below to see how a Protective DOWC program puts you in the driver’s seat.