When you compare, there’s no comparison.

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

A Protective DOWC program puts the ownership/management team in the driver’s seat of a company that’s designed to work for them:

• Forecast better. With a complete understanding of the financials and on-demand reporting, they’re better able to forecast and plan.
• Improve profit margins. Other dealer participation programs can come with heavy administrative costs. There are no extra, hidden, or surprise fees with a Protective DOWC program.
• Boost the dealer's bottom line. A Protective DOWC program typically provides up to a 20% increase compared to other dealer participation programs.
• Increase capital acquisitions. As net worth grows, ownership can take out capital loans from a Protective DOWC program to invest in new dealerships or other growth projects.

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.