Tricolor debuts insurance program

© Can Stock Photo / sqback

Tricolor Auto Group is diving into the auto insurance business with the creation of Tricolor Insurance Agency, the company announced today.

Tricolor Auto Insurance has signed up with 10 “nonstandard” carriers in Texas, said Chief Product Officer Mauricio Delgado, referring to insurers that offer coverage to high-risk customers. Tricolor will not underwrite the policies; instead, it will act in the capacity of agent, he noted.

The buy-here, pay-here lender will leverage its 28 dealerships in Texas and 8 Ganas dealerships in California to generate leads with thin- and no-file consumers, Delgado said, with plans to expand coverage outside Tricolor’s existing customer base in either late 2019 or 2020.

Tricolor will offer liability and full coverage options and waive additional fees, Delgado said. “It won’t be difficult to turn on the marketing machine to attract non-Tricolor customers,” he said.

Customers with lower incomes or credit histories are often forced to pay as much as double for their insurance plans, Tricolor’s Chief Executive Daniel Chu said in a release.

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