Protective Asset Protection unveiled another wealth-building program option for dealerships on Thursday.

Called the Protective DOWC Re Program, the company highlighted this solution merges the best of traditional reinsurance with the benefits of a Protective dealer-owned warranty company (DOWC), giving dealers a new tool to “supercharge” their wealth-building strategies.

The company explained that the Protective DOWC Re Program has a simple setup process, similar to a traditional reinsurance program, while offering tax advantages akin to a Protective DOWC.

With the flexibility of Protective DOWC Re, the company said this program can benefit a wide range of dealerships.

Protective said it acts as the obligor for all products offered under this program.

Available in all states except Florida, Washington, and Puerto Rico, the Protective DOWC Re Program can support a variety of products, including vehicle service contracts, roadside assistance, ancillary products, maintenance, and limited warranties.

Protective is currently seeking additional product options to enhance the Protective DOWC Re offering.

The company pointed out that key advantages of the Protective DOWC Re Program include:

—Low capitalization requirement

—Ability to leverage third-party investment advisors

—Availability of quota shares.

While it shares some similarities with the traditional Protective DOWC, such as taxation structure and commission handling, Protective noted that it differs in aspects like domicile, contract obligor, and earnings patterns.

“The Protective DOWC Re Program is a game-changer for auto dealers looking to optimize their wealth-building strategies,” said Tim Blochowiak, vice president of sales, client wealth, financial institutions, and training for Protective Asset Protection. “It combines the simplicity of traditional reinsurance setup with the tax advantages of a Dealer Owned Warranty Company, all while requiring minimal initial capital.

“This innovative hybrid solution allows dealers to maximize their financial potential, offering flexibility in investment allocations and supporting a wide range of products. In today’s competitive market, the Protective DOWC Re Program provides dealers with a powerful tool to enhance their long-term financial success while maintaining the ease of operation they need to focus on their core business,” Blochowiak went on to say.

Dealers interested in the Protective DOWC Re Program are encouraged to consult with their Protective representative to determine if this wealth-building program aligns with their financial goals.