Lia Auto Group has started an insurance brokerage company to serve its customers at 22 locations in New York, Massachusetts and Connecticut.

Lia Group Services LLC, is based at 2116 Central Ave. in Colonie, New York, above Lia Toyota. The plan is to have satellite offices at all Lia dealerships offering auto and home insurance.

Other forms of insurance will eventually be available, such as renters, watercraft and motorcycle.
The company will serve as an independent agent, selling insurance from a variety of carriers. The first carrier is expected to be announced next week. A handful of other carriers are in the process of finalizing their contracts, or "appointments" as they're known in the industry.

Free insurance quotes will be offered to new and used-car customers, and those getting vehicles serviced. Quotes can also be given to people who aren't Lia Auto customers.
"It really seems like a natural fit for us," said Bill Lia Jr., principal insurance broker. "We've got a captive audience of customers that have to get insurance. There’s a lot of opportunity for us to provide a great customer experience because they’re already in our dealerships."

Lia owns the dealerships with his brothers, Michael and Vincent, and their sister Deborah Simeone.

"We decided the timing is right now," Bill Lia said. "As the auto industry has changed, the margins we make on vehicle sales is less than in the past so we’re looking at other opportunities to provide value and generate a return on that."

The Lias also own the VENT Fitness chain and have a stake in the local BurgerFi hamburger franchise.

Some automotive dealers in western New York sell insurance from a single carrier, an arrangement that provides fewer options than offering multiple carriers, said Fred Holender, president of Professional Insurance Agents of New York, a trade association in Albany.

"The more companies you have, the more opportunities you have to successfully take care of your customer," Holender said.

The biggest hurdles to becoming an insurance broker are the state regulations, licensing process, and start-up costs for marketing and staff.

"Insurance brokers don't typically make a profit for two to three years," Lia said.

Joshua Dewez, who has more than 13 years of experience in the industry, will serve as director of insurance. He previously served as vice president of sales and agency operations at Canoe Associates, his family-owned agency in Clifton Park. He was also president and principal agent at B.I. Group.

Source: Albany Business Review 2018-03-21