Fred Loya Insurance Review 2020

Fred Loya Insurance specializes in providing minimum levels of auto insurance to high-risk drivers — typically those with poor credit or who are required to file an SR-22 form due to traffic violations or DUIs. The company is operated by EP Loya Group, a Texas-based auto insurance company, which also owns Loya Insurance Company, Young America Insurance, Rodney D. Young Insurance and National Insurance — agencies that offer policies from both Fred Loya and other insurance providers. Depending on your location, Fred Loya Insurance may be marketed using one of these names.

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.

If you have a hard time finding coverage, Fred Loya can likely issue you a policy. However, consider other options available for high-risk drivers before choosing Fred Loya as your auto insurance provider. If you simply want to purchase a policy that meets your state’s required minimum coverage levels, there are alternative options available to you.

Fred Loya auto insurance

Fred Loya offers minimal auto insurance coverage. While all policies include liability coverage, other types must be added on, including collision and comprehensive coverage and personal injury protection or medical payments coverage.

Additional coverages could include:

• Physical damage coverage. This covers damages from sand, hail, floods, vandalism and collision, regardless of who is at fault.
• Gap coverage. If your collision coverage doesn’t cover the full amount needed to repair your car’s damage, Fred Loya will pay the difference.
• Rental reimbursement coverage. Get reimbursed for the rental car cost while your vehicle is in the shop for covered repairs.

» MORE: Personal injury protection: What you need to know

Fred Loya offers policies for high-risk drivers, which often includes those with poor or no credit. Fred Loya’s policies can be issued with or without a credit check, and SR-22 forms may be available. Some policy coverages and exclusions are unconventional and may not be clear, so it’s important to carefully read the fine print. For example, Fred Loya offers “complete coverage” — a combination of both comprehensive and collision coverage — but only for vehicles that are free of any damage. And once a policy is purchased, any changes, including address and phone number updates, must be made over the phone or in person.

Fred Loya doesn’t offer online car insurance quotes. To get a price quote, you must either call the Fred Loya hotline or visit a location. You can find a nearby office using the website’s location finder, and some offices are in readily accessible retail spots like grocery stores and select Walmart stores.

» MORE: Car insurance quotes: What you need to know

Fred Loya discounts may include:

• Multiple car discount.
• Air bag or automatic seat belt discount.
• Anti-theft discount.
• A discount if you have completed a defensive driving course.
• Driver’s education discount.
• A discount for completing an alcohol and drug awareness course.

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 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:

• Unsatisfactory settlements and offers.
• Delays in handling claims.
• Denial of claims.

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.
• 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.

More about Fred Loya

• • Website: The Fred Loya website is bare bones with limited information on coverage types available, and offers few features. Current customers are able to access their policy as well as make payments online, while new customers can use their location finder to locate a retail location nearest them.
  • Mobile alerts: Fred Loya Insurance offers the ability to sign up for text alerts. These alerts can provide information on your policy information and upcoming payments due, as well as other account information.
  • Filing a claim: Claims must be filed over the phone and can be reported only during office hours as 24/7 phone support is not available.
  • State availability: In addition to Texas, Fred Loya offers auto insurance coverage in Alabama, Arizona, California, Colorado, Georgia, Illinois, Indiana, Nevada, New Mexico and Ohio.

Fred Loya’s phone number is 1-888-248-8787.

Recap: Fred Loya pros and cons

Methodology: Insurer complaints

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2016-2018. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. Ratios are determined separately for auto, home (including renters and condo) and life insurance.