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.
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:
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.
Similar to ownership of a dealership, a Protective DOWC program belongs to the shareholders. So all the decisions are made by the management team:
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.
A Protective DOWC program puts the ownership/management team in the driver’s seat of a company that’s designed to work for them:
What a Protective DOWC program is not is a dealer obligor program, and it does not have the negative accounting treatment of a dealer obligor program. The Protective DOWC program is a separate legal entity, backed by the financial strength of Protective Property & Casualty Insurance Company.
In five decades of managing DOWCs, not one Protective DOWC program has failed or caused loss to the Protective DOWC program shareholders.
Since its invention more than 40 years ago by United States Warranty Corp., a Protective Company, we’ve been working with automotive dealers to design participation programs that provide more value to both the dealership and its customers.
As the inventor, we’ve developed the proprietary software and processes that enable us to track every dollar for every contract, which is unique to the product. No other company provides this level of financial accuracy and transparency.
Dealerships pay less for administration and get more in customer service. We are 100% committed to a dealership’s F&I development. We tailor the program to dealership's needs and train the team accordingly. We ensure dealerships are working toward greater profitability and customer satisfaction from day one.