Fred Loya Auto Insurance Review (2024)

Fred Loya may come to mind if you’re looking for cheap car insurance. In some cases, Fred Loya offers rates for car insurance that are half of what other companies ask for. But Fred Loya might not be the best car insurance company for you.

The company has had legal issues, ultimately having to pay fines for its misleading business practices. Additionally, many Fred Loya customers have negative things to say about the company, its policies, and its claims process.

What You Should Know About Fred Loya Insurance

Unfortunately, Fred Loya car insurance reviews suggest the company may not be a good fit for most people. The company has far more than the expected number of complaints for a company of its size, according to the National Association of Insurance Commissioners (NAIC).

Additionally, Fred Loya insurance claims reviews from customers state the company does not honor its policies, causing customers to have to pay out of pocket for things that their insurance should cover.

Fred Loya was fined in 2012 for not adhering to underwriting guidelines. Even now, the NAIC shows that the company has nearly 500% more complaints than it should based on its size.

As you search for auto insurance, you should find multiple options that may work for you. However, you should avoid Fred Loya coverage and pursue a policy with another company with better ratings and positive customer feedback.

What is Fred Loya?

Fred Loya Insurance Company offers nonstandard auto insurance coverage to high-risk drivers. In addition, the company provides liability policies to individuals who may find it challenging to get coverage elsewhere.

Here are some of the high-risk drivers Fred Loya covers:

• People with a DUI or DWI on their driving record
• Individuals with bad credit
• People who need to file for SR-22 coverage
• Individuals with multiple traffic violations on their driving record

Fred Loya is a subsidiary of EP Loya Group based in Texas. If you’re considering purchasing a policy with Fred Loya, you should look around and see if you can get coverage elsewhere. Because the company has so many customer complaints, it may not be a great fit.

Fred Loya Insurance Coverage Options

Fred Loya offers the following coverage options to its policyholders:

• Bodily injury liability. This coverage pays for injuries caused during an accident.
• Property damage liability. This coverage pays for damages caused during an accident.
• Uninsured/underinsured motorist. This coverage pays when someone at fault does not carry insurance, has insufficient insurance, or a hit-and-run-driver.
• Collision. This coverage pays for damage to your vehicle caused during an accident.
• Comprehensive. This coverage pays for damage to your vehicle caused by non-accident incidents, such as inclement weather or vandalism.

In addition to the standard coverages listed above, Fred Loya offers its customers rental reimbursement options. The company does not have many add-ons for coverage, but this makes sense, as its focus is helping high-risk drivers find proper minimum coverage.

Fred Loya offers full coverage policies, but the company’s exclusions state that full coverage only extends to vehicles without any damages. Therefore, if you purchase a full coverage policy with Fred Loya, but your car has a few dents or other damage, you may find that your claims are denied in the future for this reason.

Fred Loya Insurance Rates Breakdown

This company does not offer quotes online, so you’ll have to speak with an agent to determine how much you would pay for coverage.

Drivers with Fred Loya pay around $240 monthly, or $2,889 annually, for full coverage. Compare that with rates from the top insurers in the country in the table below.

But drivers who choose a minimum coverage policy may pay as little as $2 monthly ($449 annually), which is over $100 lower than the national average.

Fred Loya's full coverage rates are much higher than the national average, which speaks to the company's main focus of offering minimum coverage to its policyholders.

Every quote you get will depend on a variety of factors, including your age and driving history.

Young, first-time drivers will pay much more for auto insurance than adults in their mid-30s with a clean driving record. Take a look at the chart below to see how much teenage drivers tend to pay for car insurance.

Once you turn 25 years old, you will see your rates decrease dramatically as long as you’ve kept a clean driving record.

A person’s driving history also plays a big part in how an insurance company sets your rates. A person with one traffic ticket will see an increase in car insurance rates. Insurance companies may raise your rates even higher if you cause an accident while driving.

It won’t be surprising that drivers will see the largest increase in premiums if they receive a DUI. Take a look at the table below to see how these violations can impact your auto insurance rates.

We always recommend getting quotes from at least three different insurance companies when shopping for insurance quotes, or even when it’s time to renew your current policy.

Fred Loya Insurance Discounts Available

Fred Loya offers specific auto insurance discounts, which may include the following:

• Multi-car
• Safety features
• Anti-theft
• Defensive driving course
• Driver's education course
• Alcohol and drug awareness course

Some companies allow customers to save as much as 25% on their insurance through discounts, so you can speak with a Fred Loya agent to see if you're eligible to save.