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A dealer owned warranty company (D.O.W.C.) is a domestic warranty company owned by the dealer principal, with day-to-day operations handled by your provider.


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 DOWC is taxed as an insurance company under federal tax laws, leading to significant tax efficiencies.

  • 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 DOWC program offers 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.





Our Dealer Owned Warranty Company (DOWC) solutions lead the industry with the best in dealer controls, management, and more wealth-building potential...ever.​

In a recent comparison between CFC and DOWC, one of our long-time Dealer Customers saw an increase of 148%. 



  • Significant tax efficiencies without additional fees

  • Call the shots and know where every dollar is every day

  • Optimize income without being the contractual obligor

  • Exclusive, proprietary software and processes that enable us to track every dollar for every contract, for total transparency

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