Total Loss Protection: The ABCs of TLP

Superior F&I products are those that offer clear benefits and valuable coverage that will, in the event of a claim, provide customers with a positive experience that builds their allegiance to their selling dealer. Total Loss Protection from DOWC is just such a product. Let’s take a closer look into how it works and the ways it can benefit both customers and dealers.

What is Total Loss Protection (TLP)?

A vehicle that suffers significant damage in an accident (resulting in repair costs being more than the vehicle’s actual cash value), or is stolen and unable to be recovered, may be deemed a total loss by the owner’s insurance company.

Total Loss Protection coverage helps relieve the burden of replacing a vehicle deemed a total loss because of accident or theft by providing a credit to the customer toward the purchase or lease of a replacement vehicle from the selling dealer.

How TLP is Different from GAP

Both Guaranteed Asset Protection (GAP) and Total Loss Protection (TLP) are coverages that come into play in the event of a total loss resulting from an accident or theft. The difference lies in the type of financial benefit provided.

A GAP waiver covers a portion of the difference between the insured value of a vehicle and the balance of the loan or lease that the owner must repay. In essence, it pays off any amount still due after insurance settlement on the matter.

TLP, on the other hand, provides financial relief toward the cost of a replacement vehicle. Coverage takes the form of a credit to the owner, up to the coverage maximum benefit, toward a vehicle purchase or lease from the selling dealer.

The Protective Element of Our TLP Product

What sets DOWC’s Total Loss Protection apart is the inclusion of a protective product designed to deter theft or aid in stolen vehicle recovery. Options include:

  • UV Body Panel Labels that leave a permanent and unique code on the vehicle that is visible under UV light, deterring theft and allowing law enforcement agencies to identify the owner of a recovered vehicle.
  • GPS Tracking Devices that can be installed (some using the OBDII on-board diagnostic port) and that transmit a vehicle’s location using GPS satellites, allowing immediate location tracking, and aiding in recovery.

In the event that the installed theft protection product fails to prevent the theft of the vehicle, and it is not recovered and thus deemed a total loss, TLP’s financial benefit is triggered.

Valuable Benefits for Customers & Dealers

For dealers offering DOWC’s Total Loss Protection product, the value is two-fold: revenue generated throughout the term of each contract as well as the direct tie-back for vehicle replacement per the terms of the agreement.

For customers, added theft protection brings peace of mind from day one of ownership. And in the event of a total loss, the financial benefit helps protect their budget and get them back on the road in a vehicle acquired from their trusted selling dealer.

To learn more about Total Loss Protection, and the full line of DOWC F&I products, as well as participation options, contact us today.

This is How We Do Business

When it comes to starting a new relationship with an F&I service provider and administrator, the last thing dealers are likely to think about is how it might end. But there are important things to know about the final farewell before saying “I do” to a new financial partner.

The shocking reality of how dealers can be mistreated by a “trusted” partner recently came to light through this actual message we received from a dealer who was in the process of retiring. 

Here are the facts:  

  • Manufacturer finance groups are gouging their dealers at termination, even lifelong partners who are expected to retire with maximum return on their years of investment and hard work.
  • As shown in this example alone, one premium OEM service provider dealt an incredible blow to this dealer with a stunning 12% cession fee and 2.5% premium tax rate.  
  • Add to that a potential collateral increase as well as loss adjustment expense (LAE) and the aggregate loss is staggering. 
  • This specific dealer is facing a loss of $120,000 per $1 million as a result of the terms imposed here.

DOWC offers an alternative: a better, fairer, and much more lucrative alternative every dealer should be made aware of. At the outset, we set dealers up correctly with a transparent fee structure that ends as it begins.  


OEM F&I Services: 

  • Variable cession fee (in this example, an astronomical 12%) on runoff premium
  • Zero, or limited, access to unearned premium through the life of relationship 
  • Standard 2.5% premium tax  


  • 0% cession fee on runoff premium
  • Expanded access to wealth through various participation structures 
  • State-specific premium tax

To maximize success, we leverage each dealer’s state-specific tax rate instead of taking a one-size-fits-all approach, often resulting in less tax and fewer fees. 

Throughout the life of the partnership, DOWC’s terms remain transparent: 

  • Your admin fees do not change 
  • Your insurance fees do not change 
  • You are charged no loss adjustment expense (LAE) per claim or at termination 
  • The increase to the amount of collateral is kept to 125% at termination (vs. upwards of 150% others may require 
  • You are charged no cession fees  

Our goal is provide expanded and ongoing access to wealth rather than limit it, and certainly not to chip away at it further upon termination.

Even when the relationship reaches its conclusion, for whatever reason, we charge no additional fees and walk away as friends.  

Dealers must protect themselves from being victimized by their OEM finance group. The DOWC model is low-commitment and low-obligation. Our agreement allows for a 30-day notice to cancel – resulting in zero consequences and zero ceding fees. Given the financial impacts illustrated above, these are critical points to consider in choosing the right F&I partner.  

Contact us today to learn more about how DOWC does it differently. 

PaymentShield™: Financial Protection When Customers Need It Most

Job loss can happen without warning and often result in immediate impacts on customers’ personal or household finances. Car loan or lease payments could quickly become a source of financial strain without regular income. But losing access to one’s vehicle would present an entirely new set of unwelcome challenges.

Helping your customers protect their investment and ability to keep their vehicle when difficult circumstances arise is crucial. That’s where DOWC’s PaymentShield program comes in.

In the unfortunate event that a customer loses their job due to covered circumstances, including pandemics, PaymentShield provides reimbursement of loan or lease payments for up to six months.*

PaymentShield is available for new vehicles that are leased or purchased, as well as for loans on used cars.


PaymentShield is a benefit provided by the selling dealer.  

When a vehicle is purchased or leased, the customer is automatically made eligible for a predetermined maximum total PaymentShield benefit set by the selling dealer. 

For example, a maximum total benefit of $5,000 would allow: 

For a base vehicle payment set at $799/month, a monthly reimbursement for the entire payment could be issued for up to 6 months ($799 x 6 = $4,794). 

For a payment amount of $899/month, a monthly reimbursement for the entire payment could be issued for up to 5 months, with $505 applied toward a 6th month’s payment ($899 x 5 = $4,495 + $505 = $5,000). 

For a payment amount of $999/month, reimbursement could be issued for the entire payment for up to 5 months ($999 x 5 = $4,995). 

Note that the customer must be current on payments and provide proof of payment(s) made to be eligible for reimbursement. Some additional restrictions will apply, and proof of employment at the time of the vehicle lease/purchase, as well as proof of job loss, are required.

The key to resilience is the ability to overcome adversity. Working with your valued customers to put protection in place today is a smart way to help them safeguard against unexpected challenges that may arise tomorrow.

PaymentShield offers financial relief … and cash in hand … when it is needed most.


* Reimbursement is subject to maximum benefit and other terms and conditions of the contract. Reimbursement amount does not include finance charges, late charges, delinquent payments, deferred payments, uncollected service charges, refundable prepaid taxes and fees, and/or penalty fees owed by the customer on the date of employment loss.

Wealth Is Not About Having Money, It’s About Having Options


DOWC specializes in programs and structures that are focused on making cash accessible to dealers: not in a few years, but when they actually need it – NOW.

With impacts like the pandemic shutdown and chip shortages, would access to cash make a significant difference to your business?

The key to resilience is the ability to overcome adversity. Access to cash – your cash – gives you the flexibility to invest and deploy your resources as you see fit: to retain talent, to expand, to drive more return.

DOWC takes your wealth seriously. Let’s talk about your business and keeping it healthy with cash flow and careful compliance.

Learn more and reach out for your personalized consultation today.

DOWC Benefits Our Dealers by Providing Excellent Digital Resources

DOWC’s reliable tech and tools provide customers the information they seek and dealers the resources to sell with ease.
The result? F&I wins, increased profit, satisfied consumers.

Marketing Support
  • Sharply designed digital marketing materials & video content that can be passed seamlessly through to preferred menu systems and e-commerce platforms.
  • The DOWC online supply store, a self-service resource that provides easy access to product collateral and supply reorders.
Dealer Resources
  • Smart, transparent, always-on reporting.
  • Convenient web portal for up-to-the-minute news, updates, and instant access to contracts and agreements.
Engagement Tools
  • Our custom-built technology tools to better manage customer interactions, provide support, and maintain relationships.
  • Producer Information Portal designed for intuitive management of deals in progress as well as creating new deals.

Two Outstanding F&I Brands, One Road to Dealership Success

DOWC and Offer Tailored Solutions for Every Dealer

For dealerships of every size, F&I can be a key source of growth. But not every dealership needs the same solutions.

As part of a family of companies that directly provide and administer innovative protection products, DOWC and offer comprehensive dealer and customer services, including varied participation options, critical compliance expertise, and a tech-forward approach to claims administration and always-on reporting. We have the solution for your every need.

service contract
Top-Notch Customer Experience

Together, DOWC and are fully dedicated to customer satisfaction by offering world-class coverage options, competitive pricing and flexible payment terms, efficient claims processing, and an extensive national network of repair facilities to get vehicles back on the road without delay.

We proudly maintain an A+ Better Business Bureau (BBB) rating and have successfully processed tens of millions of dollars in claims, creating thousands of extremely satisfied customers and positive associations with selling dealerships.

Superior Dealership Options 

Dealer groups, franchise dealers, and independent dealers of all sizes each have unique needs. Our family of brands is structured to provide streamlined, lucrative solutions to support every dealership type and every dealer’s business preferences. 

We provide the tools to successfully market to customers across every financial range. We offer multiple participation options, including the option not to participate. We exist to pay claims and create satisfied customers who tie back to your dealership for service and repeat business. Our technology is a game-changer for managing your F&I and dramatically improving your bottom line. 

Lucrative Agent Opportunities 

Agents know their dealers best. With two stellar brand options, we are providing the full spectrum of opportunities for signing and retaining business. We have simplified onboarding, amplified our outstanding online and consumer ratings, and are constantly innovating new products and services to give our agents a powerful arsenal of competitive options that bring lucrative commissions and satisfied dealers who will stay and grow with us. 

DOWC has been awarded a Top Workplaces 2021 honor by Top Workplaces. We are a family-run and family-oriented company, and we cherish every member of our team as one of our own. This recognition means so much to us as it reflects honest feedback and constructive response from our staff.

DOWC was included for the first time in this year’s program, conducted by in conjunction with employee engagement technology company Energage LLC. Public and private companies, nonprofit organizations, and government employers throughout the state were eligible for nomination. Data from anonymous employee surveys provided insight on criteria including culture, leadership, and connection. Survey results are compared to the Top Workplaces benchmarks built on more than 15 years of data to determine each industry’s best in class.

As a relatively young organization, it is meaningful to us to achieve this honor. As we have strived to build a strong business, we have also dedicated ourselves to creating a great culture. At DOWC, our corporate and personal values are deeply connected: Integrity is paramount, honesty is prized, creativity is encouraged, and growth is facilitated through an unwavering belief in each person’s capacity for excellence. We love what we do, we enjoy each other’s company, and we are delighted to see our positive efforts reflected in this Top Workplaces recognition.

February 18, 2021 (RINGWOOD, NJ) — Dealer Owned Warranty Company (DOWC®), a leading provider and administrator of F&I products and services, is proud to introduce a high-value identity protection product that uses innovative technology to offer multiple layers of protection, including best-in-class fraud prevention and remediation services.

ID Theft Protection coverage offers a comprehensive suite of high-value protective services and benefits, including dark web and financial monitoring and stolen funds reimbursement to restore customers’ confidence and safety. Paired with 24/7 customer service and thorough coverage, these benefits make ID Theft Protection an outstanding value solution for the protection of your sensitive and vulnerable digital lives.

Each of us unknowingly risks exposure of our personal information online daily. As DOWC Founder & CEO Michael LaMotta explains, “Every minute we work, shop, and socialize online, we run the risk of identity theft or fraud that is often so sophisticated we are not even aware it has happened.” With an average use of four hours spent on the internet each day, those risks are substantial for users of all ages who access the web through cell phones, tablets, laptops, and other smart devices.

“Our goal in creating this ID Theft Protection product,” LaMotta explains, “is to provide affordable access to protection for anyone who seeks peace of mind through robust protection and real, tangible remedy should identity theft or fraud occur.” That recourse includes a unique suite of protective services and benefits that include fully managed restoration, stolen funds reimbursement, single credit bureau monitoring, and careful surveillance of hard-to-find “dark” websites and forums where information is traded and sold by identity thieves.

Provided by DOWC, one of the nation’s leading providers and administrators of F&I products and services, ID Theft Protection expands the opportunity for dealerships to offer protection services to their valued customers, separately or in addition to their vehicle protection needs. As identity theft and identity fraud threats continue to rise, and the costs of cybercrime skyrocket annually, this is a timely and high-value product addition to DOWC’s expansive service contract and financial protection offerings.

About DOWC

DOWC® is among the fastest-growing service contract providers and administrators in the United States. DOWC offers customizable F&I products, expertise in compliance, and a full suite of technology designed to optimize productivity and expedite claims adjustments, processing, and reporting. For more information about DOWC, visit, call 201-777-1000, or email

We are delighted to announce the recent promotion of Danielle Diodato to Director of Compliance. As of January 1, Danielle is broadening the scope of her focus, in addition to her role as Associate General Counsel, to fuel our team’s ability to ensure compliance at all levels across the company’s holdings.


Danielle brings a unique skill set to DOWC and Provider Management Services, merging a depth of experience in managing all aspects of litigation and transactional work with expertise in compliance and regulation. Expanding her role reflects our deep appreciation for Danielle’s integral contribution to our operational excellence as well as our core commitment to ensuring compliance with a focus on both supporting customer operations and safeguarding customer reputations.

The new year is approaching, and with it the changeover to a new federal administration. Re-examination of the legal landscape and related tax implications is in order, including both fundamental automotive regulations as well as finance and insurance laws.

The year 2020 was unlike any in modern history. Disruptions to social, economic, and legal norms, caused by the COVID-19 pandemic, have shaken many institutions to the core. Within the automotive industry, challenges were met with resilience and an impressive rebound despite ongoing supply disruption, inventory shortages, and retail restrictions.

In an era of fluctuating interest rates, continued tariffs, trade war ramifications such as the unresolved dispute with China, and ever-changing statutory requirements, automotive dealers have a great deal to contend with in addition to keeping sales moving. Changes in the automotive space and related industries, combined with increased regulatory scrutiny and continued developments in trade and M&A, forced dealers to face several unique challenges this year, particularly as online retailing becomes dominant. As the new year approaches, a re-examination of the legal landscape and related tax implications is in order.

Review and analysis of not only fundamental automotive regulations but also finance and insurance laws are highly recommended. It is vital to keep these key points in mind:

  • While various overarching federal laws govern aspects of the sale of F&I products, most products are subject to the statutory framework in place in each state.
  • Regulators and policymakers seek to ensure a competitive and fair market that is first and foremost protective of consumers. As a result, disclosure and financial security requirements are ripe for action by the legislature and may be pitfalls for dealers who are unaware of changes.
  • Dealers should leverage the many resources available to them to ensure continued compliance. An F&I administrator with regulatory and tax counsel should be able to provide guidance; first-hand education is available through many dealer associations. 

As we enter 2021, conscientious risk and wealth management are also essential for the success of dealers. Familiarity with the broader tax changes affecting the industry, particularly with the incoming Biden administration that may enact policies quite different to those currently in place, will allow for informed decisions about participation in the F&I segment of the business.

In recent years, the Federal Tax Cuts and Jobs Act prompted many car dealers to consider the formation of a domestic c-corporation (a dealer-owned warranty company) to serve as the provider of their F&I products as a means of shifting away from the uncertain future tax implications of operating as a non-controlled foreign corporation and insulating themselves from newly mandated disclosures required from controlled foreign corporation owners. The tax structure and benefits afforded a dealer-owned warranty company effectively meet the wealth-building needs of dealers while satisfying regulatory compliance concerns. 

Dealers who have not explored or transitioned to this structure over the last 12 months will find it beneficial to do so prior to year-end to ensure enough time for discussion of tax benefits, formation, and registration of the entity, and to ensure all regulatory requirements are met. In fact, more than 30 tax breaks that Congress has permitted to regularly expire and then renew are currently set to expire at the end of 2020, including individual, business, and energy tax breaks. There is great profit potential and risk mitigation opportunity with a dealer-owned warranty company structure. 

That said, the dealer is the true owner and operator of the company and is responsible for compliance with all applicable laws as the provider of its F&I products. As a result, it is recommended that dealers work with a trusted DOWC administrator who has knowledgeable legal and tax departments to ensure the most prudent and effective administration as allowable by law, and protection of the benefits achieved through the structure.


Edvie Castro, General Counsel of Dealer Owned Warranty Company, is a dynamic leader in the automotive industry, operationalizing the DOWC® vision and driving the business forward daily. Her handling of regulatory and compliance matters earned her a nomination from NJ Biz for 2020 General Counsel of the Year. DOWC is among the fastest-growing service contract providers and administrators in the U.S., offering customizable F&I products and expertise in compliance as well as a full suite of technology designed to optimize productivity and expedite claims adjustments, processing, and reporting.


Fast-growing F&I service provider and administrator well-positioned for increased presence

September 2, 2020 (RINGWOOD, NJ) — Dealer Owned Warranty Company (DOWC), a leading provider and administrator of F&I products and services, is proud to announce the appointment of industry veteran Gene Silas as Director of Sales.

Mr. Silas brings a wealth of experience and dealer relationships to his new role at DOWC. Following his service as a Marine, Silas entered the automotive space working his way through all positions in a dealership, eventually becoming the General Manager in several stores. Recognized for his talent, he was recruited as an F&I Specialist by one of the largest independent providers of F&I products in the industry. Over the next two decades, Silas excelled through the ranks from that initial role to District Manager and finally to Regional Manager. He was instrumental in establishing that organization’s Associate Development Program.

Following on that legacy of success, Silas was invited to join one of the largest automakers in the U.S. as an Area Manager, a role in which he successfully helped build the company’s service contract and ancillary business. Roles with a major parts, service, and customer care organization and as a dealership sales consultant followed. Joining DOWC in early 2020 was a natural progression for Silas. “I am blessed to have been first a Zone Manager and now Director of Sales with the most transparent dealer-centric F&I company in the industry,” Silas states with pride.

“We are excited to have such an experienced professional, and good friend, in this position,” stated Michael LaMotta, founder of DOWC. “Every interaction with Gene is a positive learning experience. He knows the industry inside and out, and his passion for the business is unmatched.”

As Director of Sales, Silas brings his deep knowledge of the industry and natural facility for mentorship to focus on development and training of the sales team. A well-timed appointment, Silas joins the organization as its exponential growth positions it for increased presence as a disruptor in the F&I industry.

Founded by LaMotta, DOWC is a family-owned company that combines more than 30 years of automotive industry experience with cutting-edge digital process automation. DOWC delivers a full suite of F&I purchase and protection products and solutions to dealers and their customers, with a dedicated mission to promote the sale of wealth-building products that increase the dealer’s revenue.

“With Gene at the helm of our Direct and Agent teams,” says LaMotta, “our dealers will receive the immediate benefit of service that is attentive, informed, and supercharged in their representation of the absolute best products and revolutionary wealth-building structures for automotive dealers of all sizes.”

About DOWC

DOWC® is among the fastest-growing service contract providers and administrators in the United States. DOWC offers customizable F&I products, expertise in compliance, and a full suite of technology designed to optimize productivity and expedite claims adjustments, processing, and reporting. For more information about DOWC, visit, call 201-777-1000, or email