Dealer Owned Warranty Company / The Protective DOWC™ Program

A dealer owned warranty company is a domestic warranty company owned by the dealer principal, with day-to-day operations handled by Protective. The owner(s) control the program branding and select which F&I products are offered in their stores. The dealer has total visibility into all investments and transactions. A Protective DOWC is taxed as an insurance company under federal tax laws, leading to significant tax efficiencies.

Enjoy Having Control Over Your F&I Program

  • Dealer reserves, consumer contract coverages, and marketing materials, as well as the company name, and state of incorporation are some of the options managed by DOWC ownership.
  • A Protective DOWC program offers the best of both worlds with the tax deferral advantages of a non-controlled foreign corporation (NCFC) and the cash flow benefits of a controlled foreign corporation (CFC)
  • Underwriting profits and investment income are retained solely by the dealer owned warranty company.
  • With less restrictive investment allocations than traditional dealer participation programs, a Protective DOWC program offers the potential of a significantly higher risk-adjusted return on equity and assets.
  • Flexibility to receive current income or long-term capital appreciation.
  • The dealer is not the contractual obligor of service contracts.

Protective Asset Protection helps you with the set-up of your DOWC, and handles all of the day to day operations for the DOWC. This includes: Underwriting, Claims, Financial Statement Preparation and Reporting, and “Real time” Online Entry and Reporting.

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