FAQs

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What is Reinsurance ?

It can sound complicated at first. It doesn’t have to be.  For the moment, just know that the SideCars Reinsurance program helps your dealership save a ton of money in administrative fees – and in a financial structure that is fully approved by the IRS. We accomplish this by allowing the dealer to participate in the back-end underwriting profits which have historically been reserved for traditional insurance companies.

“SideCars provides a full suite of reinsured vehicle service contracts and ancillary products for auto & RV dealerships in all 50 states. The SideCars Reinsurance Program is different than the others: it’s a competitive, turnkey solution that is easy to implement and with no hidden fees.” – Garen McMillian, CEO Sidecars Inc.

what products can be used with sidecars reinsurance ?

Vehicle Service Contracts (VSC), GAP, Limited & Powertrain Warranties, Key Replacement, Tire & Wheel, Appearance Protection, Dent Repair, and anything else that creates a risk which the dealer can then reinsure.

who can own a reinsurance company ?

A reinsurance company can be owned 100% by a dealer principal, or ownership can be shared with key employees or children to create innovative estate planning.

what does the irs think about reinsurance ?

The short answer is that the IRS has no problem with reinsurance, as long as it is properly structured. The concept of reinsurance has been around for decades, and the way it’s done today was successfully tested by the IRS in 2004. SideCars puts a lot of effort into providing the structure and guidance needed for your reinsurance company to pass code.

Curious how SideCars is so much better than other reinsurance providers?  Sign up for our “How is SideCars better?” series!

how is sidecars, inc different ?

We are deliciously unique in a lot of ways. First, we provide the best reinsurance program available, at the most competitive fees. For example, we charge a flat rate per reinsured contract – with no additional “percentage-of-premium” fees. Also, we actually like our jobs (amazing, right?!?), and we love being able to make such an impact on our clients’ bottom lines. When you make a difference, the world is a lot more fun.

why is sidecars , inc a better fit for my dealership than [insert brand]?

It’s possible you’re *not* a fit for us. If you like paying excessive fees while fighting bureaucratic red tape… well, then, we aren’t your company. SideCars, Inc. is best for those dealers that appreciate responsiveness, expertise, and transparency. Our reinsurance program scales to work with dealers ranging from small to large—but of course those with multiple rooftops will see the most impact.

since when is it a good idea to use an “offshore” domicile ? i dont want my money leaving the country !

That’s great to hear! We don’t want your money to leave the country, either. The good news is that it NEVER does with SideCars Reinsurance. What we do is form your reinsurance company in either the Turks and Caicos Islands, or the Delaware Indian Tribe. Then, and this is very important to understand, we help you set up a reinsurance bank account in your name right here in the good ol’ USA. It’s a good idea to form the reinsurance company in an offshore domicile because doing so legally and ethically saves you a tremendous amount of fees. The domicile location does NOT equal the bank account location.

how much does is cost to get started with sidecars reinsurance ?

Great question! Because we are a lean company that leverages technology to the max, we are able to charge the most competitive fees in the industry. We routinely save our new clients tens – sometimes hundreds – of thousands of dollars per year over our competition. (And we provide all the same services, to boot!)

[insert competitor’s name] told me yesterday that dealer obligor service contracts are being attacked by the irs ! what is your answer to this ? i don’t want to end up in jail !

In a nutshell: this is a scare tactic, designed to keep ya right where {competitor’s name} has got ya. SideCars provides both Dealer Obligor and Admin Obligor contracts, so we don’t force you to choose. The truth is that the IRS doesn’t care whether your reinsurance is Dealer Obligor (DO) or Admin Obligor (AO) – they just want it to be properly structured. And that’s what SideCars excels at. No jail-time needed, which is great news for everyone!

Who is a good client for SideCars, inc ?

Our reinsurance program serves auto and RV dealers of all shapes & sizes, and we rely on independent agents to service these dealers.  If you’re an agent looking for the best way to set yourself apart, contact us right away.  We want to work with you!

Is my Dealership too big, too small to take advantage of SideCars reinsurance ?

Great question. Glad you asked. In short, it “depends”. If you sell 30 or more vehicles a month, than SideCars Reinsurance could be a great fit. Contact us at  (800) 888-2251, or shoot us an email at info@sidecarsinc.com. We will be happy to discuss your specific situation.

Whether you’re doing reinsurance already, or brand new to the idea, SideCars Reinsurance makes it drop-dead simple to switch providers and get started.

How Much Could You Save?

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SideCars Reinsurance Savings Calculator
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