Dealer Obligor Program
How it works:
- Dealer sells a car
- The F&I team sells a vehicle service contract for that car
- Contract and admin fee go to Assurant— reserve goes to dealership account
- Administrator adjudicates claims for contract life
- Dealership has 100% access to reserve and keeps 100% of underwriting profit and investment income
Cash Flow Example
Selling 75 service contracts per month with a $700 reserve cost
Time Period | Cash Reserved Generated |
After 1 month | $52,500 |
After 6 months | $315,000 |
After 12 months | $630,000 |
After 24 months | $1,260,000 |
After 36 months | $1,890,000 |
What the Dealer Obligor Program Could Do for Your Dealership
The Assurant Dealer Obligor program offers a comprehensive menu of products for new and used vehicles. Assurant provides all the marketing materials, documents and contractual liability insurance while you maintain total control of the income generated. This means it’s easy for you to offer a service and maintenance program where, unlike traditional programs, you hold the cash reserves providing financial leverage and investment income potential.
The Assurant Dealer Obligor program can be up and running at your dealership in a matter of weeks. Assurant will support the transition from start to finish, making the process easy and transparent for you.
And, should your goals change and you need to adjust your participation position, you can move from one participation plan to another without any switching costs or loss of productivity at the dealership.
You own the program and make decisions about:
- Compensation
- Customer satisfaction
- Customer retention
- Employee satisfaction
- Expense minimization
You direct 100% of your investment income
- Provides a variety of investment options
- Builds your dealerships
- Sustains the continuity of ongoing operations
- Allows access to capital
Dealer Obligor Program Features
- Immediate cash flow: unlike traditional service-contract programs, you hold the reserve, providing financial leverage and investment income potential
- Superior loss control: with advanced administrative capabilities
- Management reporting: our reporting suite provides real-time data for enrollment, claims, cancellations, and cash flow & reserve analysis
- World-class claims administration: our claims infrastructure assures customer satisfaction
- Industry-leading account oversight: from the field to the home office, we are your program partner
- Highly Rated: backed by the Virginia Surety Company, Incorporated: rated A (Excellent) by A. M. Best Company
- Lender compliant: accepted most major manufacturers and financial institutions
- Robust product offerings: from service contracts to maintenance agreements, our product offerings are designed to provide what you need, when you need it
- Also available for recreational vehicles, motorcycles, and powersports vehicles
- Leadership, stability, and financial strength: Our commitment makes it the leading choice of dealers nationwide.