Since 1881, Magnum has been a major player in the Illinois non-standard auto insurance market, writing tens of millions of dollars in premiums annually. Their focus is selling non-standard, state minimum coverage auto insurance to the Hispanic community. From a single storefront in Chicago they continued to expand – now they have over 40 locations.
Magnum wanted to grow their business, but opening new stores is daunting and expensive: outlays of tens of thousands of dollars to rent and equip space, as well as the investment to hire, train and license staff. While it was difficult to justify the capital costs to open a new store, it seemed to be the only option to expand with a physical presence to cater to their cash-preferred customers. Chris Roman, Magnum’s Vice President, said, “Cash is expensive.” Costs for cash handling alone often precluded the opening of a new store.