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Fred Loya Auto Insurance

Friday, 08 November 2013 18:44

Fred Loya offers auto insurance to non-standard or high risk drivers in its six state markets. Fred Loya Insurance originated in Texas and expanded its market to the following states: Illinois, Colorado, Nevada, California, and New Mexico. The company is known for picking agency locations that are near public shopping centers, office buildings, grocery stores and other areas with high levels of foot traffic. Drivers with poor credit, a limited driving history, and other drivers who may have difficulties getting insured are a part of the company’s target market. Fred Loya has been the subject of numerous complaints from current and former customers online, mostly regarding customer service and claims related problems.

Company Background Information

Fred Loya is headquartered in El Paso, Texas and specializes in non-standard vehicle insurance. It is ranked among the top 20 largest Hispanic owned businesses in the United States and offers bilingual support to its customers. The company was founded in 1975 in El Paso, Texas by Fred Loya, a rancher who started selling insurance. Today the company has over 2,700 employees and over 360 locations in the six state markets where it sells insurance.

In 2012 Fred Loya Insurance received a fine of $300,000 for violating Texas insurance laws regarding false advertising. Fred Loya has not received a rating from A.M. Best so it is difficult to determine the company’s financial strength, however it has been business for over three decades.

Pros of Fred Loya Auto Insurance

  • May offer coverage to drivers who have difficulty getting coverage
  • May offer more affordable rates to high risk drivers than other insurance companies

Cons of Fred Loya Auto Insurance

  • No A.M. Best rating to determine financial strength
  • Multiple negative customer experiences posted online
  • Very little information on the types of auto coverage offered
  • No grace period for insurance coverage

Website

The company website has minimal information regarding its auto policies. Customers can file claims online through the website and make a payment on their policy. Prospective customers can also get a quote online from the Fred Loya website and check for the nearest office location. The website has some articles about general liability, comprehensive, collision, uninsured motorist, and personal injury protection coverage and an extensive FAQ section.

Types of Insurance Offered

Fred Loya is known to offer auto coverage to the non-standard market, but the specifics on the auto policies that are offered is not clear. Fred Loya offers some information about its policies in the FAQ section and mentions that it does offer the following optional coverage options in addition to its standard liability insurance products:

  • Collision coverage – covers the cost of damage resulting from a collision.
  • Comprehensive coverage – pays for damage resulting from vandalism, theft, fire, animals, weather, falling objects or other types of damages, weather, falling objects or other types of damage.
  • Personal injury protection – this pays for lost wages, medical and funeral costs, for a driver or a passenger.
  • Medical payments – this covers medical care following an accident regardless of who is at fault and has a limit of up to three years following an accident. Coverage depends on the state.

Customer Reviews

There are a number of complaints involving Fred Loya auto insurance online. Customers have complained of difficulties getting reimbursed for medical expenses, unprofessional customer service, problems with claims processing, and various other issues. Without a rating from J.D. Power or other review agency it is hard to judge Fred Loya’s support based on anything other than what its customers have posted online.

Fred Loya

Recommendations

Insurance seekers who might have seen a Fred Loya advertisement in their area may be tempted to get a quote from them, but with the lack of third party information on Fred Loya’s service and financial stability, it is hard to recommend them for high risk auto insurance. There are a number of other more positively reviewed insurance providers who offer affordable non-standard auto insurance, and if you are looking for a quote you can get one now by entering you zip code on this page.

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