Beware of Fred Loya

I’m writing this article to urgently warn you about an insurance company that is not only preying on low-income Coloradans, but is also creating hardship and, sometimes, life-altering situations for innocent victims of motorcycle accidents. 

Fred Loya is the worst of the worst insurance companies. (And that is saying something for an industry filled with a lot of bad companies.) First, they target at-risk communities by selling their policies through used car lots and in low-income neighborhood grocery stores. They literally prey on disadvantaged people who see the low-cost insurance and think that they are purchasing protection. But Fred Loya disappears when claims are filed. (See the Yelp reviews below.) If your insurance company disappears when you make a claim, that is like having no insurance at all.

Minimum Coverage Only

Additionally, Fred Loya claims to offer every kind of policy but they truly don’t; they only issue liability coverage for the bare minimum required by the State of Colorado: $25,000. This is not enough coverage. If you are insured by Fred Loya, assume that your other assets, such as your home, are at risk if you get in an accident because your policy is too low to cover most damages from an accident.

1. If you are covered by a different, respectable company, why should you care? Two reasons: Even if you have good insurance, if you get hit by a driver with Fred Loya insurance (a growing risk as the company expands in Colorado), you will likely never get what you need to replace your damage and healthcare costs.
2. Our community’s at-risk populations are struggling enough as it is. We should all be angry at a company that makes life even harder for them.

I urge you: get the word out today. Share this article with everyone you know. We must protect our community from Fred Loya Insurance.

Reviews

But don’t take my word for it. The following reviews are directly from Yelp, where Fred Loya has a one-star rating.

“[Fred Loya] is by far the worst Company I have EVER dealt with. My wife was hit by one of their insured drivers almost a month ago…. After expressing my extreme displeasure with the way they have handled this claim I sat silent for approximately 30 seconds while the adjuster said nothing, NOTHING, he just sat there silently and when I asked him if he had any information for me, he still wouldn’t respond. I could hear him breathing but the man would not talk, I asked if he was still there and he still maintained his silence, made me think of high school. I still haven’t heard from them. I only have one piece of advice for anyone reading this, if you use them for insurance, you should really think about changing carriers. Imagine if they had to pay you for your car if it was damaged. If you get hit by one of their “insured” drivers, get a lawyer immediately.”

— Brian, in Aurora

“Nope!! DON’T………I repeat, DO NOT purchase Fred Loya for your car insurance. This company is sneaky, shady, sheisty, low- down, conniving, uncaring, indifferent and predatory! They provided me a 6-month policy for $260 down, and $210 per month (plus $12 electronic deduction from checking account) = $222/mo. for 6 months. Well, I shopped around and found a policy with another company for $120/mo. (a $100 savings). So, I decided to finish out my 6-months with Fred Loya (since they charge a $50 policy cancellation fee), then switch at the end of 6 months. After the 6th deduction from my bank account, I promptly received a “Renewal Declaration” in the mail, thanking me for choosing to renew my policy for another six months. WHAT!?!? I didn’t choose to renew! Yep….you guessed it…. they AUTOMATICALLY renew you! I called to advise I no longer wanted to continue with them, and they said….too bad, so sad! That 6th payment wasn’t part of the original 6-month policy. No….it was the 1st payment for the next 6-months. But I explained that the payment breakdown on the original paperwork said that the 6 monthly payments were required for the ORIGINAL six-month policy. They snickered and said….”Sorry, we can see how that would be confusing, but even though it says it is the 6th and final payment for the ORIGINAL policy, it is really the FIRST payment for the renewed policy. WOW!! OK….since you admit that it is misleading, cancel my renewal and refund my money! They said, ‘Sorry, we have earned that money. If you cancel now, we will only refund a portion. The $50 cancellation fee will be deducted, and we will mail you a refund check in about 2 weeks.’ SPREAD THE WORD!”

— Darren in Denver

“I never write reviews unless I have something positive to say. I just think it’s a waste of time to write negative things about a company. This time, however, I must say it’s necessary for people to know how Fred Loya (for the most part) is. They claim to be an insurance company that does right by their customers. That is completely false. I urge potential customers to stay away from this unethical and unprofessional company. I won’t go into detail, but I will state that nobody that I spoke to in regards to a total loss claim had the decency to do their job. They were supposed to send a check to the finance company to cover the vehicle and they took over 5 months. As a result, my credit score went down due to the incompetence of these people. A process that should have lasted one week has taken them 5 months. I truly urge you to walk away from this company.”

— Ruby in Denver

“[Fred Loya] has horrible response to customers claims. Allowing vehicles to sit for 7 to 10 days before coming to adjust so vehicle can be repaired. Absolutely rude people like Melissa that simply don’t care about their policy holders nor the shops that are working to repair our mutual customers vehicles. RUN don’t walk away from these cheap skates.”

— E.M. in Morrison

Again, please help to get the word out about this horrible company. (And in the meantime, check your own policy to be sure you have enough UIM – underinsured motorist coverage – in the event that you are hit by one of these drivers. Call me if you have questions: 303-388-5304. Or read more about underinsured insurance here.