Standing Up to Loyal Auto Insurance: Don’t Let Them Undervalue Your Claim

If you’ve filed a claim against a negligent driver insured by Loyal Auto Insurance and feel mistreated, you’re not alone. Many claimants experience lowball settlement offers, prolonged delays, or outright denials from Loyal Auto Insurance. If you’re frustrated by their tactics—such as minimizing your injuries, delaying settlements, or pressuring you into accepting inadequate offers—you don’t have to accept it. Contact our experienced personal injury attorneys at Young America Insurance for help.

Have you sustained serious injuries due to a Loyal Auto-insured driver, only to face months or even years of delays? Perhaps your current attorney is urging you to accept a meager $15,000 policy limit offer, claiming it’s the best you can get. This isn’t always true. Insurance companies like Loyal Auto Insurance can be held accountable for unfair practices, and we’re here to help you fight for the compensation you deserve.

A happy family stands proudly in front of their SUV, showcasing peace of mind with Fred Loya Insurance — affordable auto coverage designed for every driver.

When an insurer fails to settle a claim fairly and promptly, they risk facing a bad-faith lawsuit. For example, if a jury awards $1,000,000 in damages and Loyal Auto Insurance had a reasonable opportunity to settle within their policy limits but refused, they could be liable for the full amount. Our team at Young America Insurance specializes in holding Loyal Auto Insurance accountable for such misconduct.

Why Choose Us to Handle Your Loyal Auto Insurance Claim?

With years of experience battling difficult insurers like Loyal Auto Insurance, we understand their common tactics, including:

• Lowball Offers: Offering settlements far below the true value of your claim.
• Minimizing Injuries: Downplaying legitimate injuries and associated medical expenses.
• Recorded Statements: Pressuring claimants into giving recorded statements that may be used against them.
• Delay Tactics: Prolonging the claims process to frustrate claimants into accepting less.

These mishandled claims can escalate into “open policy” lawsuits, where damages are not capped by Loyal Auto Insurance’s minimal policy limits. A bad-faith lawsuit may arise if Loyal Auto Insurance fails to settle fairly or promptly. They may also undervalue claims from their own insureds in uninsured or underinsured motorist cases. Our firm has a proven track record of confronting these unfair practices. Call us today at (916) 921-6400 for free, friendly advice.

Who Is Loyal Auto Insurance?

Loyal Auto Insurance, headquartered in El Paso, Texas, operates in multiple U.S. states, including California, Texas, Nevada, Arizona, Illinois, Indiana, Ohio, Georgia, and Alabama. Founded in the 1970s by Fred Loya Sr., the company targets Hispanic and low-income customers, often selling minimum-coverage policies to high-risk drivers with poor driving records. With over 5,000 employees and annual revenues exceeding $500 million, Loyal Auto Insurance is a significant player in the auto insurance market.

Despite its size, Loyal Auto Insurance has faced criticism for its claims handling and business practices. Regulatory actions, lawsuits, and customer complaints highlight issues such as bad-faith insurance practices and unfair claim denials.

A Fred Loya Insurance agent warmly welcomes a smiling family at a local office, reflecting the company’s commitment to customer care and personalized service.

How Loyal Auto Insurance Markets Itself

Loyal Auto Insurance strategically places its agents in locations frequented by its target demographic, such as Walmart, Big 8 Food Source, Fiesta Mart, and Fiesta Whole Food stores. Their marketing, which includes both English and Spanish-language campaigns, emphasizes affordability for low-income and high-risk drivers. According to their website, the company spent $26 million on marketing in 2013 alone, underscoring their aggressive outreach efforts.

Types of Policies Offered by Loyal Auto Insurance

Loyal Auto Insurance primarily sells low-cost, minimum-coverage policies tailored to state requirements. For example, in California, these policies include:

• $15,000 bodily injury coverage per person
• $30,000 bodily injury coverage per incident
• $5,000 property damage coverage per incident

Since minimum-coverage policies generate lower premiums, Loyal Auto Insurance often employs aggressive cost-cutting measures to maintain profitability, which can lead to unfair claims practices.

Common Claims Practices of Loyal Auto Insurance

Auto insurance is a numbers game, and Loyal Auto Insurance plays it aggressively. Here are some of their common tactics:

1. Quick, Lowball Offers: Offering minimal settlements early to convince uninformed claimants to accept less than their claim’s worth.
2. Denying Legitimate Claims: Rejecting or undervaluing valid claims, hoping claimants will give up or settle for less.
3. Delay Tactics: Prolonging the claims process to pressure claimants into accepting inadequate offers while the insurer earns interest on withheld funds.
4. Using Recorded Statements: Encouraging claimants to provide recorded statements that may contain information used to reduce or deny claims.
5. Challenging Medical Bills: Disputing the validity or amount of medical expenses to lower claim values.

An experienced personal injury attorney can counter these tactics and ensure you receive fair compensation.

How to Protect Yourself from Loyal Auto Insurance’s Tactics

To avoid being taken advantage of by Loyal Auto Insurance, follow these steps:

1. Avoid Giving Recorded Statements

Loyal Auto Insurance may request a recorded statement shortly after an accident. While they claim it’s to gather facts, their goal is often to elicit statements that weaken your claim. You are not obligated to provide one. If you must give a statement:

• Avoid speculating about fault. Statements like “I might have been partially responsible” can jeopardize your claim.
• Refrain from discussing injury details. Simply state that you’re receiving medical care and are not ready to elaborate. Discrepancies between your statement and medical records could be used against you.

2. Reject Early Lowball Offers

Early settlement offers from Loyal Auto Insurance are often far below your claim’s true value. The full extent of your injuries and medical costs may not be clear initially, so accepting an early offer could shortchange you. Consult an attorney before agreeing to any settlement.

3. Protect Your Medical Expenses

Loyal Auto Insurance may request your medical bills, only to later claim they’re “unreasonable “‘ after a biased review. An attorney can ensure your medical expenses are properly documented and defended.

4. Include All Claim Elements

A bodily injury claim encompasses more than just medical bills. Ensure you account for:

• Future medical expenses
• Pain and suffering
• Lost wages or income
• Loss of consortium
• Future losses due to long-term injuries
• Punitive damages (if the driver’s negligence was egregious, e.g., drunk driving)

Loyal Auto Insurance may overlook these elements unless you explicitly claim them.

Complaints and Legal Actions Against Loyal Auto Insurance

Loyal Auto Insurance has faced significant criticism and legal challenges:

• Consumer Affairs: Rated 1.1/5 stars based on over 250 reviews.
• Better Business Bureau: 1/5 rating in El Paso, Texas.
• Texas Department of Insurance: Fined $300,000 for unfair and deceptive practices.
• New Mexico Lawsuit: Sued for bad-faith denial of uninsured motorist claims (Warlock v. Loya Insurance Company, Case No. D-202-CV-2012-01260).
• California Department of Insurance: Recorded 40 justified complaints over three years.

Case Study: $3.1 Million Verdict in Orange County, CA

In a recent Orange County, California case, a Spanish-speaking janitor suffered an elbow fracture with a 30% loss of motion due to a collision caused by a Loyal Auto Insurance-insured driver. The driver’s policy had a $15,000/$30,000 bodily injury limit. Instead of promptly paying the $15Settings,000 limit for the significant injury, Loyal Auto Insurance delayed the case for over four years with lowball offers. The plaintiff’s attorney argued that this failure “opened the policy,” making Loyal Auto Insurance liable for damages beyond the policy limit. A jury awarded $3.1 million, highlighting the risks of Loyal Auto Insurance’s unfair practices.

Why You Need an Experienced Attorney

Loyal Auto Insurance employs skilled adjusters and defense attorneys trained to minimize payouts. Without legal representation, you’re at a significant disadvantage. Our attorneys at Young America Insurance have the expertise to:

• Counter delay tactics and lowball offers
• Protect your rights during recorded statements
• Ensure all claim elements are included
• Pursue bad-faith lawsuits when warranted

We’re proud members of the Million Dollar Advocates Forum and the National Association of Distinguished Counsel. Watch this Georgia news report highlighting Loyal Auto Insurance’s questionable practices.

Contact Us Today

If you or a loved one has been injured in an accident involving a Loyal Auto Insurance-insured driver, don’t let their tactics undervalue your claim. Contact our experienced personal injury attorneys at Young America Insurance for free, friendly advice. Call us at (916) 921-6400 or use our online contact form. Let us help you secure the compensation you deserve.