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Although its main company is the most well-known branch of the Fred Loya brand, it does have several subsidiaries: Rodney D. Young Insurance, National Insurance and Young America Insurance.
Fred Loya’s primary focus is on affordable auto insurance, and it markets its products heavily toward Hispanic customers as it is one of the largest owned and operated Hispanic companies in the United States. Unlike many other low-cost insurers that utilize independent agencies, Fred Loya uses dedicated agents in strategically placed offices. Fred Loya has more than 700 agencies that over 5,200 employees. It’s especially common to find a Fred Loya office near Hispanic supermarket chains like Fiesta Whole food or Cardenas. It also advertises heavily on Spanish-speaking television, radio and other media to reach their targeted audience.
It’s obvious from the Fred Loya site that the company’s biggest focus is on its rates. There are several ways to find quotes and agencies listed on the site, including a toll-free number and online quote form.
Fred Loya only sells auto insurance; there is no property coverage offered by the company. The only way to see what coverages are available is by requesting a quote; the online quote form will take you to a coverage selection page where you can review your options.
To keep costs low, the company offers very basic coverage. Liability is offered at the minimum state rates. For example, in California this means a $20,000 limit for single-person bodily injury, a $40,000 limit for multiple-person bodily injury, and $15,000 limit for property damage liability. These are very low limits, which will put you at risk of maxing out your coverage and being held personally liable for damages or injuries you’re responsible for beyond these amounts.
You can add comprehensive, collision, uninsured motorist and medical payments coverage to your policy. Using the example above, the med-pay limit in California is either $500 or $1000, and this is used to cover your own medical care as a result of an accident. Obviously, this is lower than the costs of most emergency care, but med-pay coverage is generally designed to fill in the gaps of your personal health insurance rather than cover all of your medical bills.
The exact coverages offered will depend on your state as each one has its own minimum insurance requirements.
You can request a quote online or call for a quote at 888-248-8787. Alternatively, you can find a local agent to walk you through purchasing a policy.
The online quote form is a little long and tedious. It will give you an error message if your address is more than 25 characters long, which is very inconvenient. It will also prompt you for your driver’s license number so that it can check your driving history, but it is possible to get the quote without that information.
Using our standard driver profile, I was quoted a price of $109.20 per month for a 6-month policy or $607.00 for six months if paid in full. On the surface this may seem low, but it is important to remember that the coverage amount is substantially lower than what we typically test. Therefore, a direct cost comparison against other companies is not possible.
Fred Loya has a staff of about 200 insurance adjusters working at its locations nationwide. Adjusters are the employees responsible for determining liability in an accident and assessing the damage a vehicle sustains in order to settle the claim.
To file a claim, you’ll need to call the customer service line at 800-880-0472 between 7am and 8pm Mountain time. On Fridays and Saturdays, the line closes at 4pm, and it is not staffed on Sundays.
You’ll be called by an adjuster within 24 hours of filing the claim. From there, you’ll arrange to have a vehicle inspected, provide a statement about the accident and discuss any further concerns in regards to the settlement.
Fred Loya is somewhat infamous for its consumer complaints. The company has an “F” rating with the Better Business Bureau, with the website listing a total of 214 complaints and two negative reviews. The BBB also reports that the company is under government action due to inaccurate advertising claims.
Consumer Affairs gives the company a 1 star rating, with a total of 152 complaints and reviews, complaints seem to be more prevalent. The recurring theme across most of the complaints are that adjusters are hard to get hold of, resulting in long handling times for claims. Billing issues and and lack of customer service are also mentioned throughout the complaints.
There is also an unofficial Facebook page called “Texans against Fred Loya” with 273 followers. It shares customer complaints from a number of sources.
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Fred Loya advertises low rates, but its cheap policies are due mostly to it offering bare minimum coverage. The overwhelming ratio of negative reviews to positive ones on consumer sites is evidence that the problems with the company are widespread. If you’re looking for affordable insurance, there are other companies that will offer much better policies with similar prices.
For a list of companies that we recommend, visit our Best Insurance Companies page.