Dealing With Fred Loya Insurance, the Loya Insurance Group, and Rodney D. Young

The Loya Insurance Group encompasses several insurance companies including Fred Loya Insurance and Rodney D. Young Insurance. They boast over 500 offices operating across Texas, Alabama, California, Colorado, New Mexico, Nevada Illinois, Georgia, Arizona, Missouri, and Indiana.  According to their website, they provide “competitive rates…regardless of your past driving or credit history.”  Fred Loya has several types of insurance plans with payments to fit their customer’s needs so there are many types of Fred Loya Insurance claims being handled by their adjusters.

In 2012, the State of Texas fined Fred Loya $300,000.00 for “false advertising” for not following their criteria for offering insurance policy discounts.

Nonstandard Insurance a/k/a “High Risk” Insurance

Fred Loya is known for marketing competitive rates to people who are considered “high-risk” and/or uninsurable by other standard auto insurance companies. This type of insurance is called: “nonstandard insurance.”  High-risk drivers are those who have difficulty obtaining insurance for several reasons such as a history of accidents, a prior DUI, excessive number of speeding violations and/or other traffic citations in their past, youthfulness, living in high-risk driving areas, or even just because they drive a car built for speed or racing.

Because nonstandard insurance gears toward high-risk drivers, it is not uncommon for a Fred Loya nonstandard insurance policy to be very barebones.  The State of Texas only requires that drivers carry a minimum of $30,000.00 per person and $60,000.00 total per accident for bodily injury liability and $25,000.00 for property damage. This is called a “minimum limits policy.” Often these policies are stripped down with no personal injury protection and no uninsured motorist/underinsured motorist coverage to keep the cost to the insured down. There is a high probability that you will be dealing with this type of policy when making Fred Loya Insurance claims.

The Named Driver Exclusion

When nonstandard insurance is involved, it is more common to see a Named Driver Exclusion in the policy.  What this means is that for any driver specifically named as an “excluded driver” in the policy, there is no insurance coverage regardless of whether they have permission to use the vehicle or not. These exclusions are often used when there is a minor in the home or a high-risk driver that the insured represents will not be permitted to operate the vehicle.  If that named person borrows the vehicle and gets in a wreck, the insurance coverage is voidable.

Unfortunately, some drivers use these types of policies deceptively. They may opt to pay for a policy in installments, acquire the proof of insurance and use it for purposes of renewing their driver’s license or having a card in their vehicle in case they get pulled over but then stop paying the policy premiums.  They also may have someone else purchase the insurance in their name so that they have an insurance card in the vehicle even though they may not be covered by the policy. So, at the end of the day, that insurance card you get handed may not provide coverage for the person handing you the card.

 Fred Loya Claims Adjusting

Like any insurance company, Fred Loya and Rodney D. Young do not make their profits by generously paying out claims. It is not uncommon for us to get a less-than-reasonable first offer on Fred Loya’s claims.  You may also get a denial based upon the Named Driver Exclusion or lack of cooperation of their client. Unfortunately, high-risk clients are not always the most responsible when it comes to responding even to their agents. This can create a non-cooperation issue and even result in the loss of coverage if it persists.

Also, because Fred Loya and Rodney D. Young insurance policies often provide only $30,000.00 in coverage, you may find yourself looking at not enough insurance benefits to cover your medical expenses.  Under these circumstances, your options are generally to try to negotiate down the medical bills and/or pursue an underinsured motorist claim against your carrier.

Get Help

If you are struggling with the above issues because you got into a wreck with a Fred Loya insured or Rodney D. Young insured, call to discuss your legal rights.  The initial consultation is always free and we do not charge you any attorney fees nor case expenses unless we make a recovery on your behalf. You do not have to fight Fred Loya insurance claims on your own.  Call Simmons and Fletcher, P.C., today.