Captive Risk Management partners with RAC on auto insurance deal
Ross Automotive Consultants (RAC), an F&I serving both franchise and independent auto dealers nationwide, has announced a strategic partnership with Captive Risk Management (CRM) to offer dealerships access to an IRS-compliant program engineered specifically for wind and hail exposure. The program allows dealers to stop treating catastrophic deductible costs as a sunk expense and begin building a segregated, dealer-owned asset instead.
The launch arrives as severe convective storms deliver a third consecutive year of more than $50 billion in US insured losses, according to the Insurance Information Institute, and as the average hail damage auto claim has nearly doubled since 2020 to approximately $8,200 per vehicle. For dealerships—which routinely park hundreds of new and used units outdoors—a single qualifying storm can generate deductible obligations large enough to erase an entire quarter’s profit.
The program lets dealers establish a fully segregated, IRS-compliant cell within an existing reinsurance position to fund and reimburse deductible costs on inventory, paintless dent repair (PDR), and business interruption claims. Premiums are validated by third-party pricing, and unused funds accumulate over time as a strategic, wealth-building asset rather than disappearing as an expense.
“For years, our dealer clients have absorbed catastrophic deductible costs with nothing to show for it,” said Jim Ross, founder and chief executive of Ross Automotive Consultants. “This partnership with CRM gives them a legitimate, IRS-compliant way to take control of their risk—and, for the first time, to build equity from it.”
Coverage provided through the captive program includes:
• Wind, hail, hurricane, and tornado damage to new and used inventory
• Deductible reimbursement on qualifying insured losses
• Paintless dent repair (PDR) costs
• Monetary shortfalls between insurance settlements and actual repair costs
• Business interruption tied to catastrophic weather events
“Auto retail carries one of the most concentrated, weather-exposed inventories in American business, and the standard insurance market has not kept pace,” said Kenny Adkins of Captive Risk Management. “Our partnership with Ross Automotive Consultants puts a proven, dealer-specific solution in front of the operators who need it most.”
The program is available immediately to both franchise and independent dealerships nationwide. RAC is offering a complimentary, no-obligation feasibility analysis—including an independent risk assessment, customised design, and implementation roadmap—to help dealer principals determine whether structure is a fit for their operation.
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