Fred Loya Insurance Review 2021

Last modified: December 19, 2021
  • Claims 6
  • Buying 6
  • Coverage Variety 5
  • Value For Money 5
  • Transparency 7
  • OVERALL RATING 5.8
  • Financial Strength Standard
  • BBB Rating C
  • Availability California, Georgia, Texas, New Mexico, Alabama, Arizona, Nevada, Indiana, and Illinois
  • Coverages comprehensive coverages for high risk and DUI drivers
  • Discounts no discounts available
  • User Ratings Low
  • Pricing Affordable

Fred Loya is an insurance solution for customers looking for cheap rates and unique features. But does Fred Loya live up to its customer’s expectations? That’s what we’re here to find out in this Fred Loya Insurance Review. If you are looking for car insurance, make sure to check out our list of best car insurance providers

Overview of Fred Loya Insurance  

Fred Loya provides low auto insurance rates for drivers with poor credit scores, traffic violations, or  DUI restrictions. The company operates under EP Loya group, which owns several other agencies like Rodney D. Young, National Insurance, and Young American Insurance. Depending on your location, Fred Loya Insurance will be marketed to you under one of the previously mentioned names. It’s based in Texas and offers a decent number of insurance options for its customers.  

Despite the company’s widespread offices, which can be found in grocery stores and Walmart, it has some unfavorable customer reviews. Whether that’s due to high customer inflow or a confusing insurance policy, it’s fair to say that Loya needs to improve its brand image.     

Our Methodology

This review of Fred Loya insurance is based on the information shared in publicly available sites from credible sources like the Better Business Bureau. In addition, some things we share here are taken from customer reviews. But we carefully weigh factors like financial strength, insurance coverage, and customer satisfaction levels.        

Loya Auto Insurance Coverage

Loya is primarily focused on auto insurance, so here is a look into its coverage and their descriptions:  

Coverage Type  Description
Collision Coverage  This insurance covers the damages caused by your vehicle. 
Personal Injury Protection (PIP)  PIP covers medical expenses regardless of who’s at fault. For example, it covers your injuries, earnings you lost, and medical care or funeral expenses after an accident.
Uninsured Motorist Coverage  UMC covers expenses if the other person doesn’t have or holds inadequate insurance.  
Liability Coverage  Liability Coverage is mandatory in most states. It typically covers when you cause an accident resulting in bodily injuries, property damage, or both. 

Optional Insurance Coverage 

Besides standard coverage, customers can add optional features if they desire: 

Coverage Type  Description
Medical Payments Covers any medical expense incurred to treat an injury you or your passenger sustained. 
Rental Reimbursements  This insurance covers rental vehicles temporarily used in replacement for your main vehicle. 
Comprehensive Insurance This type of insurance protects your vehicle from damages that aren’t due to a collision. It typically covers your vehicle from vandalism, theft, fire, and more. 

Fred Loya Financial Strength

Fred Loya’s financial strength is pretty standard. The company’s annual revenue is $975.97 million and has 3,500 employees on all sites.        

Discounts

Unfortunately, Fred Loya Insurance doesn’t offer any discounts to its customers. The company used to, but it was fined in 2012 for not adhering to underwriting guidelines for customer discounts filed with the Texas Department of Insurance. However, you can find several discount coupons from third-party websites.   

About Fred Loya Insurance 

Fred Loya Insurance company was founded in 1974 by a former cattle rancher. Before expanding to other territories, the company served only in Texas from its El Paso headquarters. Today, Fred Loya has 3,500 employees in nine states. Additionally, the company plans to increase its territory coverage in the future.    

In addition to Texas (the company’s home ground), Fred Loya’s financial products are available in California, Georgia, New Mexico, Alabama, Arizona, Nevada, Indiana, and Illinois. The company ranks at number 18th among the largest Hispanic-owned companies in the US.     

The company’s target audience is Hispanic people with low credit scores and other restrictions that prevent them from accessing other auto insurance companies in the US. Fred Loya is among the affordable options, but only if you are willing to sacrifice customer service.            

Fred Loya’s website has limited functionality, so you’ll have to visit their offices during business hours if you want to buy their insurance coverage. However, if you only want to pay your bills, you can do that online by logging in. 

Active Fred Loya phone numbers are:      

  • Customer service number: 800–248–8787
  • Claims phone number: 800–880–0472 

Fred Loya’s business hours are 7:00 am to 8:00 pm Monday to Fridays. On Saturday, the timings are till 4 pm.  

If you can’t reach Fred Loya through their phone number, you can send your claim via post to the company’s mailing address:     

Fred Loya Insurance
P.O. Box 972450
El Paso, TX 79997 

Coverage From Fred Loya 

The insurer mainly focuses on auto insurance with minimum options and no other products. Its insurance is an affordable option which means bare-bone services to keep their rates low. 

All coverages include liability insurance with the option to add other coverages for an additional cost. Add-on coverage includes collision coverage, comprehensive coverage, personal injury protection, medical coverage, and a few other options.          

The company’s website claims to provide insurance to drivers without taking their driving or credit score into account. However, no official statement verifies this claim of being a non-standard insurer.    

One of the many pitfalls of Fred Loya Insurance is that the company website doesn’t offer any coverage details. We expected a budget insurance company for high-risk drivers to offer some information about its basic or minimum insurance plans.    

What Does Full Coverage Insurance Mean?

Fred Loya’s full coverage car insurance includes liability, comprehensive, collision, and medical coverage. Minimum insurance is also available, but it only includes liability insurance.   

Does Fred Loya Cover Stolen Cars?

Comprehensive insurance by Fred Loya is a great option to secure your vehicle from damages besides collision. Fred Loya comprehensive insurance also covers your vehicle against theft, vandalism, fire, and more.        

Fred Loya Insurance Customer Service Review 

The Better Business Bureau (BBB) gave Fred Loya an F rating implying that the company isn’t trustworthy. Getting an F rating from the BBB for auto insurance companies isn’t too big of a deal, but the lack of customer care is a big problem. 

Fred Loya customer service has been reported to be rude and bloody-minded. We came across 186 reviews on Customer Affairs which were all negative. All 33 ratings left on Customer Affairs  in 2020 were one star.      

Many reviews have a similar theme: the company avoids making payments. The complaints were listed by Fred Loya customers and those involved in an accident with someone insured by Fred Loya.      

In 2012, the Texas Department of Insurance fined Fred Loya $300,000 for deceptive business. On top of that, in 2013, several lawsuits were filed against Fred Loya by their ex-customers. The following year, Fred Loya faced a class-action lawsuit in New Mexico, resulting in a settlement.

Fred Loya Insurance Claims 

Filing an insurance claim with Fred Loya is a straightforward process but recovering the compensation you deserve isn’t easy. You can contact Fred Loya by dialing their number (1–800–880–0472). However, given the deceptive nature of Fred Loya insurance, it’s best to call your car accident lawyer first. 

It’s not uncommon for Fred Loya customers to get a less-than-favorable offer at first. This is primarily because the company insured high-risk drivers, and they have higher chances of causing an accident. However, this doesn’t justify ignoring claims. You may also get a denial against your claim for non-cooperation.     

 

Fred Loya Against Its Top Competitors

Fred Loya vs. Allstate 

Online Ratings 

Allstate has exceptional scores of A+ from BBB and A+ from A.M Best. In contrast, Fred Loya is rated F by BBB because of its lack of attention to its customers.    

A.M Best and S&P 500 ratings are based on a company’s financial strength, and Allstate checks all the boxes against Fred Loya.         

Market Share 

Allstate is the fourth-largest insurance company in the USA, with a market share of 8.9%, a slight decrease from its previous market share of 9.70%.

On the other hand, Fred Loya has a relatively smaller market share, ranking 18th among the top Hispanic-owned insurance companies in the US.      

Customer Satisfaction 

When discussing customer satisfaction, Fred Loya isn’t the first insurance company that comes to mind. However, Allstate has a pretty good reputation among its existing and ex-customers. This is probably due to their heavy focus on aftersale services and excellent customer support.

Fred Loya vs. State Farm 

Online Ratings  

State Farm ratings are similar to Allstate since both insurance companies are direct competitors. However, State Farm has an A++ rating from A.M Best, an excellent badge earned for building trust among potential customers.      

Market Share 

Unfortunately, State Farm’s market share dropped to 17.9% in 2020, which was much higher than Allstate and Fred Loya.  

Customer Satisfaction 

The BBB gives State Farm an A rating for its excellent customer service. However, we noticed that State Farm had 1,425 complaints in three years. This might be a big number for small insurance companies, but the kind of business State Farm handles, such complaints don’t affect its ratings.   

Fred Loya vs. Geico 

Online Rating

Geico has the highest score from A.M Best (A++), which is considered a Superior rating. A.M Best measures a company’s financial strength, meaning Geico customers don’t have to worry about unanswered claims. However, the company receives a B+ score from BBB. Still, these ratings are much higher than what Fred Loya has.        

Market Share

Geico received rapid growth after the launch of its Geico Gecko plan. By 2015, Geico became the second-largest car insurance company in the US, with a market share of 11.41%. As of 2020, Geico had taken over 13.6% of US auto insurance.    

Customer Satisfaction 

Allstate is the same size as Geico. But reviews on Customer Affairs paint a different picture. For example, Geico has had 2,930 complaints in three years. But that’s a number we are okay with, given the rapid growth and market share the company has acquired in such a short time.   

Pros & Cons

The Pros

  • Policy for High-Risk Drivers :It’s not easy to find an insurance company that has your back after you have made a few mistakes on the road. While other insurance companies will turn a blind eye, Fred Loya has got your back.         The company offers insurance without taking your credit or driving score into account. Plus, Fred Loya’s insurance packages are budget-friendly.     
  • Receive a Complimentary Rental Car:A feature we don’t see in many insurance companies is providing a rental car while your primary vehicle is being repaired. Seeing this from Fred Loya was nothing short of a surprise, given the company’s business model of providing low-cost auto insurance. We had to say that this is one of the finest features of this company and a strong reason for high-risk drivers to buy Fred Loya’s insurance coverage.   

The Cons

  • High Number of Unsatisfied Customers and Legal Issues: Fred Loya has a staggering number of customer complaints against its services. The National Association of Insurance Commission’s data shows that Fred Loya receives 475% more complaints than what would be expected from an insurance company of its size.
  • Not Able to File a Claim Online . Fred Loya’s web services aren’t up to the mark for insurance companies. We can see that its competitors have a strong online presence with not all but most details and features available for access. However, we came across several reviews where customers complained about not being able to file a claim online.
  • No 24/7 Claim Filing Service:Insurance companies have to be vigilant 24/7 because accidents don’t only happen during the day. However, Fred Loya isn’t up all night for its customers, which negatively impacts them.

Final Verdict

Fred Loya might be a good option for those who have driving restrictions. But we would urge you to explore your options first.   

However, Fred Loya offers a rental car service, which is a major plus point in the company’s favor. So, if you can manage terrible customer service and patiently wait for your compensation, you might try Fred Loya services.       

The purpose of this review is to educate readers on the subject before they make a purchase decision. We hope you have learned from what we have shared above. But if you lost track of some of the information, here is a quick recap.  

  • Fred Loya has limited insurance options.
  • The company had been sued several times in the past. 
  • Its online services aren’t up to the mark. 
  • Fred Loya offers comprehensive insurance which covers theft, vandalism, and fire. The company claims not to consider your credit or drive score when offering its insurance services. 

FAQs

What kind of insurance is Fred Loya?

Fred Loya is an affordable insurance option for high-risk drivers. It offers limited plans but sufficient for those who cannot find insurance elsewhere.   

Does Fred Loya pay claims?

There have been customer complaints against Fred Loya for not paying claims. However, it’s common with car insurance companies, but the rate of such reviews was 475% more than what they should have been. 

What is Fred Loya's net worth?

Fred Loya’s annual revenue is $975.97 million, and the company has 3,500 employees across nine states. 

Is Fred Loya a good insurer?

Fred Loya is an affordable insurance company with poor customer service. Its complaints are five times higher than other car insurance companies.