---
title: Why Your Own Reinsurance Is Key in Running Your Dealership
description: Find out why owning your own reinsurance is a necessary move for your dealership
image: https://blog.vanguarddealerservices.com/hubfs/Blog_Images/Why%20Your%20Own%20Reinsurance%20Is%20Key%20in%20Running%20Your%20Dealership.jpg
---

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September 6, 2017

# Why Your Own Reinsurance Is Key in Running Your Dealership

Topics:

- [reinsurance](https://blog.vanguarddealerservices.com/topic/reinsurance)

![Why Your Own Reinsurance Is Key in Running Your Dealership.jpg](https://blog.vanguarddealerservices.com/hs-fs/hubfs/Blog_Images/Why%20Your%20Own%20Reinsurance%20Is%20Key%20in%20Running%20Your%20Dealership.jpg?width=601&height=338&name=Why%20Your%20Own%20Reinsurance%20Is%20Key%20in%20Running%20Your%20Dealership.jpg)

Reinsurance keeps you safe.  It's hedging your bets against catastrophic occurrences that could cost your dealership.  With profit margins growing ever tinier due to innovations, market share and internet sites it's vital to investigate revenue streams.

So why is owning your own reinsurance a necessary move for your dealership?

**Share in the profit**

Every month your customers write checks to their insurance companies.  You don't have to be left out of that revenue stream.  By servicing policies you become a key player in the process.

**Extend your profit**

Long-term relationships mean more customer interaction. Eventually, customers may feel less like they owe money, but more like they have a partnership with you. They feel taken care of and have you on their minds leading to great word of mouth and repeat business.

**Customer Retention**

The easier it is for a customer to fix a problem, the happier they are.  When you have the policy and are able to work with the customer they are more likely to be satisfied with the result.  It's not a faceless policy run by a far away company.  

**Legal Protection**

It's true that in the past reinsurance was seen as less than legit.  Having a company working with you to ensure tax compliance is key.  It's also vital to have a solid idea of risk management for both Controlled Foreign Corporations (CFC's) and Non-Controlled Foreign Corporations. (NCFC)

With clear positives, reinsurance can create a revenue stream that is much-needed.  Having professional knowledge when attempting this strategy will ensure that the outcome is in your favor.  Need help navigating this process?  [Contact us](http://www.vanguarddealerservices.com/contact-us/) so we can help you start benefiting from this process.

#### Related Posts

[![](https://blog.vanguarddealerservices.com/hs-fs/hubfs/dealer-equity-program-1200-628.jpg?width=352&name=dealer-equity-program-1200-628.jpg)](https://blog.vanguarddealerservices.com/dealer-owned-reinsurance-companies-put-you-in-the-drivers-seat)

##### [Dealer-Owned Reinsurance Companies Put You in The Driver’s Seat](https://blog.vanguarddealerservices.com/dealer-owned-reinsurance-companies-put-you-in-the-drivers-seat)

[![dealer-owned-reinsurance-meeting2-vds2019](https://blog.vanguarddealerservices.com/hs-fs/hubfs/dealer-owned-reinsurance-meeting2-vds2019.jpg?width=352&name=dealer-owned-reinsurance-meeting2-vds2019.jpg)](https://blog.vanguarddealerservices.com/is-a-dealer-owned-reinsurance-company-the-right-choice-for-you)

##### [Is a Dealer-Owned Reinsurance Company the Right Choice for You?](https://blog.vanguarddealerservices.com/is-a-dealer-owned-reinsurance-company-the-right-choice-for-you)

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