Sell
Retail service contracts
- You sell the contracts. The administrator handles them and pays the claims.
- Front-end profit only.
- Nothing to set up and no money at risk.
Best forStores just starting with service contracts, or selling a few a month.
Programs
Three ways to take part: Sell, Share or Own
Every store is different. We match the structure to your volume, your state and how much risk you want to carry.
Share
Retro program
- Profit sharing with the insurance company.
- The insurer owns the pool, holds the reserves and carries the risk.
- After claims and costs settle, you receive an agreed share of the underwriting profit: a percentage, not all of it.
- No company to form, no capital, no filings.
Best forStores selling fewer than about 7 contracts a month that want a taste of the back end.
Own
Your own reinsurance company
- Your own reinsurance company owns the pool.
- Underwriting profit and investment income on the reserves belong to your company.
- Full control over products, coverage, pricing and claims philosophy.
- A real asset: it can be sold with the store or passed on.
Best forStores selling about 7 or more contracts a month.
Retro isn’t a weaker version of ownership. They are different products for different stores, and a store can move from one to the other as it grows.
Side by side
How the three compare
| Sell | Share (retro) | Own | |
|---|---|---|---|
| Who owns the pool of reserves | The provider | The insurer | Your company |
| Who carries the claims risk | The provider | The insurer | Your company |
| Your share of underwriting profit | None | An agreed percentage | All of it, after claims and costs |
| Company to form and run | No | No | Yes, we form and manage it |
| Control over products and claims | Limited | Limited | Full |
Products a dealer can include
Built around what your F&I team already sells
Coverage, terms, rules and retail price can be tailored to your inventory and customers, within each state’s requirements.
Vehicle service contracts
Repair of covered mechanical breakdowns after the manufacturer’s warranty, in several coverage levels and terms.
Tire & wheel protection
Repair or replacement of tires and wheels damaged by road hazards.
Key / remote replacement
Replacement of lost, stolen or damaged keys and remotes.
Other ancillary products
Such as prepaid maintenance, dent repair and windshield. Availability varies by state.
Exact coverage, limits and exclusions are set out in each contract. See the contract for complete terms.
Not sure which program fits your store?
Tell us how many contracts you sell a month. We’ll tell you which structure makes sense, and why.