Is Fred Loya Good for Auto Insurance?

Last Updated on May 4, 2023

You have so many choices when it comes to auto insurance, and it can be challenging to determine which one will be the best for your needs. One of your choices is Fred Loya Insurance of the Loya Insurance Group. Fred Loya is an insurance provider with offices in 12 states – California, Colorado, Illinois, Nevada, New Mexico, Georgia, Arizona, Missouri, Indiana, Alabama, Oklahoma, and Texas.

Is Fred Loya good to use for auto insurance coverage? Does Fred Loya have cheap rates? How is their customer service? In this article, we’ll discuss Fred Loya’s auto insurance offerings, so you can see if it’s the best for you.

Key Takeaways:

• Fred Loya Insurance offers liability auto insurance and add-ons such as collision coverage, comprehensive insurance, personal injury protection, roadside assistance coverage, and MedPay.
• Fred Loya Insurance provides several discounts, including a multi-car policy discount, safety device discount, anti-theft device discount, defensive driving course discount, automatic payment discount, prior coverage discount, homeowner discount, and good driver discount.
• Fred Loya Insurance is good for providing policies to drivers with poor records who cannot get insurance elsewhere. They offer in-person services such as appraisals and a free rental car during repairs.
• The disadvantages of Fred Loya Insurance include poor customer service reviews, lack of extensive coverage, high premiums, and no usual discounts.
• Insurance Panda rates Fred Loya 2.2/5

What Car Insurance Does Fred Loya Offer?

Fred Loya offers liability auto insurance, which is required by law in most states. Liability insurance will pay for the other party’s repairs and medical bills if you get into an accident and are found to be at fault. It is effortless to qualify for their insurance policy, and their application process is straightforward.

In addition to liability insurance, Fred Loya allows you to purchase add-ons for your policy that provide fuller, more effective coverage. The first one is collision coverage, which pays for your own repairs or replacement if your car is damaged in an accident. They also offer comprehensive insurance, which pays for other damages to your vehicle, including weather-related damage, vandalism, falling objects, and more.

You may also purchase personal injury protection, or PIP, which some states require. This will pay for your medical and funeral expenses should you get into an accident. It can also cover things like lost wages. Fred Loya also offers roadside assistance coverage that will pay for roadside emergencies such as flat tire repairs, towing, and fuel delivery. Finally, you can purchase MedPay, which pays for your medical expenses, particularly anything not covered by insurance.

These add-ons can help you feel safer and more comfortable on the road. However, it’s important to note that they can also make your policy much more expensive.

What Discounts Does Fred Loya Offer for Car Insurance?

Although Fred Loya does not offer as many discounts as larger, national providers, Fred Loya still offers several discounts for car insurance, such as:

• Multi-car policy discount
• Discounts for having safety devices such as airbags and seatbelts
• Discounts for installing anti-theft devices
• Discounts for completing a defensive driving course
• Discounts for completing alcohol and drug awareness courses
• Automatic payments discount
• Prior coverage discount
• Homeowner discount
• Good driver discount

The availability and amount of these discounts may vary by state and policy. You can contact a Fred Loya agent to determine which discounts you qualify for and how much you can save.

What Are the Advantages of Fred Loya Insurance?

Fred Loya does offer some advantages for its customers that other providers don’t.

• They offer policies to drivers with poor records who otherwise may be unable to get insurance. They’ve structured their business model around policies for people with poor driving records or credit scores. They won’t check your past record when determining your policy, so there’s no fear of rejection. You can get a quote online or in their offices, and you typically only need your driver’s license and VIN number to get started.
• Fred Loya has offices throughout the 12 states they serve, where you can go in and speak with a representative in person. They have a unique new claims process where you can bring your car to an office after an accident, and they will appraise it for you right then. Sometimes, you can even get the insurance check on the same day. Speeding up the claims process means you can get your car repaired and ready to drive much faster. Talking to the insurance agent in person can also minimize the chances of misunderstandings and ensure more accurate claims.
• While your car is being repaired, Fred Loya offers a free rental car to keep you on the road until your vehicle is ready to use again.

What Are the Disadvantages of Fred Loya Insurance?

There are key disadvantages of using Fred Loya insurance that are important to be aware of before signing up for a policy.

• Fred Loya gets abysmal reviews for their customer service. Many customers discuss having to wait for extended periods to get an answer to their queries. Needing to call back multiple times is common to get someone on the line with a helpful solution. They’ve received above-average complaint ratings in national surveys and, very tellingly, have an F rating with the Better Business Bureau.
• Since Fred Loya is only available in 12 states, you won’t get the extensive coverage that you find with national brands. If you drive out of state and need assistance, you won’t be able to go to an office and will have to deal with their notoriously spotty customer service phone lines. Even in-state, their offices are not always open when you need them.
• Fred Loya’s premiums are generally well above the average in the areas they serve. However, this is because they serve people who otherwise would not qualify for coverage. Fred Loya charges high premiums to balance the higher financial risk of insuring people with poor driving records.
• Fred Loya does not offer the usual discounts that other insurance companies offer. This means you will not get an affinity discount, bundling discount, good student discount, loyalty discount,  military discount, usage-based discount, or other discounts with Fred Loya.

Fred Loya Customer Service

Fred Loya does not have a good customer service record.

The company was fined in 2012 for not following the underwriting guidelines for customer discounts that it had filed with the Texas Department of Insurance, instead adding other requirements that kept premiums higher.

Data from the National Association of Insurance Commissioners (NAIC) also shows that Fred Loya receives many more complaints than would typically be expected of an insurance company of its size. Complaints against Fred Loya auto insurance focus on delays and claim denials, and reviews from sources such as Yelp and Reddit mention similar issues.

Fred Loya Financial Strength

Fred Loya does not have a financial strength rating from A.M. Best, a credit rating agency that evaluates the ability of insurance companies to pay claims. This means Fred Loya’s financial stability and solvency are not publicly available or verified by an independent source.

However, Fred Loya is part of EP Loya Group, which owns Loya Insurance Company and Young America Insurance. These companies may have different financial strength ratings than Fred Loya itself. For example, Loya Insurance Company has a B+ rating from A.M. Best, which indicates adequate financial strength.

Fred Loya also has an F rating from the Better Business Bureau (BBB), which reflects its customer service and complaint handling. This rating is based on factors such as the number and nature of complaints, the company’s response and resolution, and the company’s transparency and honesty.

Pros and Cons of Fred Loya Auto Insurance

To recap, these are the pros and cons of Fred Loya’s auto insurance coverage:

Pros	Cons
Offers non-standard auto insurance to high-risk drivers who struggle to get car insurance coverage.	Not available in all states. Only available in Alabama, Arizona, California, Colorado, Georgia, Illinois, Indiana, Nevada, New Mexico, Oklahoma, and Texas.
In-office agents offer good customer service, including help with claims and quotes.	24/7 claims service not available. You can only file a claim during business hours by phone or in person. You can also access your policy online, but the portal is limited and does not allow you to make changes or view your claim status.
Complimentary rental cars are available while your vehicle is being repaired.	High number of customer complaints from places like BBB.
Does not require a credit check to issue a policy, which may benefit drivers with low or no credit scores.	Average premium rates are above average in cost.
Has over 800 local offices, some of which are located in convenient places like grocery stores and Walmart. You can visit an agent in person to get a quote, pay your bill, or file a claim.	Not many discounts available.
Claims can get paid out very fast. Often times they are paid on the same day.	Has faced lawsuits and fines for deceptive practices and discrimination in the past.
	Coverage offerings are limited. For example, Fred Loya does not offer gap insurance, accident forgiveness, or rideshare coverage.

Frequently Asked Questions About Fred Loya

The Bottom Line on Fred Loya Auto Insurance

If your driving history is spotty and you have trouble getting traditional car insurance, Fred Loya could be a good option. Most car insurance companies avoid insuring people with a spotty record, but Fred Loya specializes in it. It’s an excellent way to get relatively affordable policies that you otherwise might not have access to. However, Fred Loya’s poor customer service reviews mean you should tread cautiously when working with them. They’re not as responsive as other insurance companies, so it may take a long time to get a hold of them when you need them. Their premiums are also relatively expensive, and you won’t get the best value for your money. If you can choose an insurance provider with better service and coverage, it might be best to skip Fred Loya. However, if you don’t have the option for another insurance provider, Fred Loya is better than nothing.

Fred Loya Contact Information
Address	1800 N. Lee Trevino, Suite 201 El Paso, TX 79936
Customer Service Phone Number	1-888-248-8787
Claims Service Phone Number	1-800-880-0472
Email Address	customerservice@fredloya.com
Website URL	https://www.fredloya.com/