Fred Loya Insurance Review & Complaints: Car Insurance (2024)

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Texas-based Fred Loya Insurance is an auto insurance group offering coverage in 10 states. The company promises affordable rates and sells policies through an extensive network of agencies and is often located inside retailers like Walmart.

What is Fred Loya Insurance?

Fred Loya Insurance Company was founded by a former cattle rancher in 1974. The company originally served only Texas from its El Paso headquarters, but it quickly expanded to 2,700 employees over the last 35+ years. The company now serves nine other states and plans to expand its customer base in the coming years. Fred Loya Group products are currently available at offices in California, New Mexico, Colorado, Georgia, Nevada, Indiana, Illinois, Alabama, and Arizona, in addition to Texas.

The company ranks at number 18 on the Hispanic 500 list of top Hispanic-owned and operated companies in the United States. They sell auto insurance coverage through Fred Loya Group-branded agencies across their covered states. Agencies are often located inside retailers, including Walmart and grocery stores such as Cardenas and Lowe’s Foods. The goal of this is to provide easy access for prospective customers and draw in customers. There are more than 700 agencies currently in operation. Marketing is heavily weighted towards the Hispanic diaspora, with the promise of low-cost insurance.

Loya Insurance Group includes several subsidiaries: Fred Loya Insurance, Loya Insurance Company, Young America Insurance, Rodney D. Young Insurance, and National Insurance.

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Does the company offer car insurance?

Fred Loya is focused entirely on car insurance with no other products available. Their aim is to provide current customers with a budget option for auto insurance, which often means offering bare-bones coverage to keep rates low. All policies include liability coverage. However, other types may be required as add-ons, such as collision, comprehensive coverage, personal injury protection, or medical payments coverage.

Additional coverages could include physical damage coverage (damages from sand, hail, floods, vandalism, and collision, regardless of who is at fault) and rental reimbursement coverage (reimbursement for the rental car cost while your vehicle is in the shop for covered repairs).

The car insurance company website states that they insure drivers regardless of credit or driving history. Although there is no official statement that they are a non-standard insurer, that does appear to be the case. They also offer a standard Fred Loya car insurance policy, stating that they can insure with or without a credit report.

The website does not list any information regarding Fred Loya auto insurance coverage offerings, though there are links providing basic information on a state-by-state basis. We would expect a budget company offering car insurance to a higher risk driver to likely offer state minimum liability insurance as a starting point, with basic optional coverage also available.

Are the rates competitive?

The insurer’s site does indicate that a rate can be requested online, but when we attempted to follow the link, we were stopped by a warning that the page was not secured. This is not something that inspires confidence in the type of business that uses personal information to determine rates.

On another section of the site, the online Fred Loya insurance quote link simply went to a location finder service. Our general conclusion is that the company does not offer true online quoting but likely sends basic information to an agent in order to have an insurance quote prepared.

Rate quotes are also available by calling a toll-free number or by calling a local insurance agency.

Because this company is focused on budget insurance, it is vital to compare the coverage on any quote received to that offered from another company. We frequently find rates to be lower due to the quote offering only bare-bones coverage that may not be sufficient to meet state-required minimums.

Where is Fred Loya Insurance available?

Fred Loya has 726 insurance office locations, most of them clustered in major cities of the states where the company operates, such as Los Angeles, Las Vegas, and San Antonio. To get a quote, you’ll need to go to your local Fred Loya Insurance office or call the customer service number.

Fred Loya Claims Process

Ease of Filing a Claim

Fred Loya Insurance offers multiple channels for filing insurance claims, including online, over the phone, and through mobile apps. Customers can choose the method that is most convenient for them, making it easier to report accidents and damages.

Average Claim Processing Time

The average claim processing time at Fred Loya Insurance can vary depending on the nature and complexity of the claim. However, it’s essential to note that the company does not provide specific information about their claim processing times on their website. Customers may need to contact the insurer directly for more precise details.

Customer Feedback on Claim Resolutions and Payouts

Customer feedback on claim resolutions and payouts is crucial in evaluating an insurance company’s performance. Fred Loya Insurance has received mixed reviews in this regard.

While some customers have reported satisfactory claim resolutions, others have expressed dissatisfaction, citing issues with claim denials and delays. It’s advisable for potential customers to research and consider customer feedback when choosing an insurance provider.

Digital and Technological Features of Fred Loya

Mobile App Features and Functionality

Fred Loya Insurance offers a mobile app that provides policyholders with convenient access to their insurance information. The app likely includes features such as policy management, digital ID cards, and the ability to report claims directly through the app. These features enhance the overall customer experience and make it easier to interact with the insurer digitally.

Online Account Management Capabilities

Policyholders can manage their insurance policies online through Fred Loya Insurance’s website. This online account management feature allows customers to view policy details, make payments, update personal information, and access important documents. It streamlines the policy management process and provides customers with more control over their accounts.

Digital Tools and Resources

Fred Loya Insurance may offer various digital tools and resources to help customers understand their coverage options better. These tools could include insurance calculators, educational articles, and FAQs. These resources assist customers in making informed decisions about their insurance needs and understanding the services offered by the company.

Are the ratings and customer reviews positive?

The Better Business Bureau (BBB) gives the insurer an F rating, and the company is not accredited. Of the 186 insurer complaints on file in the past three years. The company has failed to respond to three of them, and four have not been resolved. It is not common to see an F rating for an auto insurance company with the BBB. However, failure to respond and resolve complaints carries a lot of weight with the BBB and dramatically affects a company’s rating.

We found a further 186 reviews on Consumer Affairs, all of which are negative. Of the 33 ratings left in the past year, all were one-star. Most of the reviews have a similar theme: the company avoids paying claims. Complaints are listed from both customers and those involved in a car accident with someone insured by Fred Loya. Further complaints include rude customer service and billing issues.

In 2012, the Texas Department of Insurance fined the company $300,000 for deceptive business practices. In 2014, a class-action lawsuit against the company in New Mexico resulted in a settlement. Yet another class action was filed on behalf of several Fred Loya employees in California in 2013.

Because Fred Loya does not have a national footprint, consumer reporting agencies such as J.D. Power andAM Best do not rank the agency.

What’s the bottom line?

The Fred Loya car insurance company promises great customer service, though, from our research, it does not seem to deliver. There are multiple red flags on this company, including several lawsuits and government actions, repeated complaints of a similar nature, failure to respond to complaints, website security concerns, and a lack of easy access to policy information or claims filing. Those in search of good coverage at a good price may want to check elsewhere and be very sure you read and compare policy options.

You can get free quotes online from the company website. You can also use their site to review your policy, look at their additional services, update your profile, file claims, make payments, and connect with an agent to ask questions. You can also call the company by phone, or visit a nearby office, during office hours to get quotes.

Remember, you should get a quote on a new auto insurance policy before your current insurance policy expires.

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