Fred Loya Auto Insurance Review: Is it Right for You?

Fred Loya Auto Insurance Review: Is it Right for You?

Fred Loya Insurance: If you want general car insurance from a smaller business, Fred Loya might be a great choice. The group offers several different types of insurance to fit individual needs but falls short on providing excellent customer service.

Fred Loya Auto Insurance Review: Is it Right for You?

Fred Loya is an insurance provider headquartered in El Paso, TX. Founded in 1974, the company sells auto insurance in ten US states.

If you’re considering whether Fred Loya Auto Insurance is a good option for you, read on.

Fred Loya Insurance specializes in providing minimum levels of auto insurance to high-risk drivers — typically those with poor credit or who are require to file an SR-22 form due to traffic violations or DUIs.

While Fred Loya offers some unique features, such as complimentary rental car coverage and office locations in grocery stores and Walmart stores, its policies can be confusing.

The company also has a high number of customer complaints and has faced legal troubles in the past.

The Pros and Cons of Fred Loya Insurance

Pros

  • Full-service and proprietary offices where people regularly go
  • Claims program that allows you to get paid on the day of filing if all requirements are in order
  • Affordable rates for non-standard insurance
  • Agents required to settle physical damage claims within 24 hours
  • Coverage for drivers of high-powered sports cars, custom-built cars, and other specialized cars

Cons

  • Claims processing times can vary
  • Available only in 11 states

Fred Loya Insurance Discounts

When it comes to non-standard auto coverage, insurance companies aren’t always so keen on trying to attract more business with discounts. Fred Loya, however, offers a small exception to that industry rule.

Additionally, they do offer one modest discount, and it’s a fairly common one. If you pay your balance in full every time you renew your policy, you can look forward to the savings below:

Discount % Savings
Paid-in-Full 7%

Fred Loya Auto Insurance Options

Fred Loya offers non-standard insurance coverage to drivers who struggle to find coverage from other providers. On the company website, this coverage seems to be limited to Liability only, and in the lower amounts necessary to be considered legal coverage.

For higher coverage limits or additional coverage options, like Comprehensive or UM/UIM, you may need to contact an agent directly in order to find out what is available.

Read: Amica Insurance Review 2020 Updates: Auto, Home & Renters Insurance

Types of Auto Insurance Fred Loya Insurance offers

Although we often talk about auto insurance in the singular, it really includes several types of coverage. Fred Loya Auto Insurance offers the following types of auto insurance coverage:

Bodily Injury Coverage

This insurance pays for your legal defense and for the costs associated with injuries to other people involved in an accident.

Property Damage Coverage

Usually, this insurance will look after the property damage you cause to another vehicle or property when at fault in an accident.

Uninsured Motorist Coverage

The uninsured motorist rider covers the damages caused by a negligent driver who doesn’t have an insurance policy.

Underinsured Motorist Coverage

This covers the damages caused by a driver who is at-fault but whose liability limits don’t cover all the property damages and medical expenses of the accident.

Collision Coverage

Collision coverage is an optional policy that pays for the cost of repairing or replacing your vehicle after an accident. If you have an auto lease, the lender may require you buy collision insurance.

 Comprehensive Coverage

If your vehicle is damaged in an event other than a collision, comprehensive coverage will pay for the cost of the repair. Covered events include storms, floods, fire, vandalism, and theft.

Medical Payments Coverage

Medical payments insurance covers for the medical costs caused by an accident regardless of who is at fault. Most policies will also cover funeral expenses.

Personal Injury Protection

Personal injury protection, also known as PIP, typically covers medical expenses, loss of essential services, funeral services, and loss of income. It is similar to medical payments coverage, or MedPay for short.

The difference is that MedPay will only cover for reasonable medical expenses.

Fred Loya Complaints and Legal Issues

Relative to its size, Loya Insurance Group has far more than the expected number of complaints to state insurance regulators. That is when compared with other auto insurance companies, according to three years’ worth of data from the National Association of Insurance Commissioners.

The top 3 customer complaint types over the last 3 years are:

In addition to a high number of complaints, the company has also faced legal issues:

  • In 2018, The Illinois Department of Insurance found that the company was in violation of the law by failing to refund premiums within 30 days to customers who had canceled their policies, in addition to numerous other regulatory violations.
  • Also in 2012, the Texas Department of Insurance fined Loya Insurance Group $300,000 for using deceptive advertising campaigns to drive business, and for illegally overcharging premiums.

Final Say

Fred Loya is a Texas-based car insurance company that serves 11 western and southwestern states. It offers both standard and non-standard insurance regardless of driving record or credit standing. Also, customers appreciate their affordable rates.

Add a Comment

Your email address will not be published. Required fields are marked *