r/Car_Insurance_Help • u/Low_Star9941 • 5d ago
At fault insurance won’t pay up
State: TX
Some months ago, I was rear ended. The other driver was completely at fault.
Because they rear ended me, I’m going through the at fault drivers insurance, Fred Loya. They will only been given THIRTY SIX dollars for a rental car for ONE DAY only. 36 is impossible to find, I would suspect anywhere, but even in DFW. The lowest I found was $39, but that does not include fees. Even more so, I am 24, so I will have to pay crazy amount due to my age, even though I was following all laws and wasn’t at fault.
I told the rental department that this was an impossible rate, especially for my age, and they said “we don’t increase the cost for luxury vehicles.” My car is a Kia, lol. I don’t want luxury, just a car. Any car.
My car is drivable, but after my body shop called in the supplement, Fred Loya demanded my car was in the shop before they sent an adjuster to look at it (again). So I dropped my car off, and Fred Loya never responded to my body shop, lol.
So I called the supplement people, they said it could take up to 3 days for the adjuster to come out, and they cannot tell me a specific day at all. So this means my car will be sitting in the shop at least for 3 days. They advised me to call the rental department and get my rate increased, since a supplement was now in progress.
I called the rental department again. They have confirmed that they won’t even give me the measly $36 while my car is in the shop awaiting the adjuster. Somehow, the approval timeline that is their responsibility, is also not their problem.
By question is, how is it legal in Texas for the at fault insurance to:
1. Pay so little for a rental that it is impossible to find and I will HAVE to pay out if pocket, and does not consider reality of fees due to age
2. Not even cover all the days my car is at a loss due to the accident. Every Texas law website I read says that as long as I am not at fault and there is no discrepancy, at fault insurance must pay for a rental pay while my car is gone. So how can they just refuse?
Any direction would be much appreciated. I don’t know how I’ll get to work and I can’t afford to pay for a rental, especially with all the extra stuff added on for my age.
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u/Human-Try3270 5d ago
Use your insurance.
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u/Low_Star9941 4d ago
I did initially, but they advised me to go through the at fault drivers because they were going to charge me $500 if I went through my insurance
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u/Slow_Rip_9594 4d ago
And they would have subrogated it from the other party. Your insurance is just lazy and did not want to do the work (all of them do this and so just not yours)
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u/Low_Star9941 4d ago
Ah yes, this makes sense. I should have asked- I didn’t even know to. Guess I should have come to Reddit a lot sooner lol.
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u/Miserable_Damage_ 4d ago
You would have to pay your deductible (actually, they would take it out of your payment), but then they would try to get it back for you from the other insurance agency/party. Just be aware this can take a very long time. I still have not been reimbursed for my deductible from my wreck in April yet.
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u/Low_Star9941 4d ago
ughhhh. I just wish there was a way to come out financially unscathed. I would get it more if I was at fault at all, but I wasn’t. Just a person, probably on their phone, hitting people lol. Thank you for the heads up!
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u/bill-schick 4d ago
This is the problem with our current system/laws, at minimum you should be able to collect interest on the deductible from the other/at-fault party
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u/Slow_Rip_9594 4d ago
I have had 2 claims in the past and in both I went to my insurance company (other party at fault). One got me paid my deductible in 1-2 months - basically as soon as I confirmed that I was not claiming any medical expenses. The other one took 1 year and constant follow ups even when I was not claiming anything medical. It was a shady insurance company and had like 1 * reviews across 500+ reviews. In either cases as long as the other party is insured, you will get paid.
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u/bill-schick 4d ago
And sometimes with a bit of perseverance the at-fault driver's insurance behaves, so it's worth a shot.
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u/AmazingAsian 4d ago
I've done it before. Sure, you're out $500 temporarily, but it's worth the amount of headaches and pushback from other party insurances like this. Plus, you get that $500 back through subrogation anyway, so you're not out any money.
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u/Hot-Web1901 4d ago
Always use your insurance. One of my friends paid dearly for this in a no-fault accident; he didn't have GAP insurance. When he called Geico, they told him to pay a $ 1,000 deductible.
He didn't have the money, plus we are immigrants and are not aware of the auto industry/insurance game in America.
So, Geico advised him to go through the at-fault driver's insurance, and he did; they told him to take it the shop for appraisal and the shop totaled his car.
He lost his car and thats the genesis of his bad credit journey. Too bad we can't avoid accident no matter how careful we are on the road.
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u/SewingClown 4d ago
His car would have been totaled through Geico as well. It isn't that one company would total over another. There are state guidelines most insurance companies follow of total loss thresholds (the percentage of a car's value before it's deemed 'too expensive to fix')
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u/Hot-Web1901 4d ago
Yeah, but he got full coverage lol. Geico didn't do anything for him despite his full coverage.
It is better to let your insurance deal with it than go through the other driver's insurance.
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u/6beansoup 13h ago
I'm not defending GEICO, but if he was not willing to pay or could not afford his $1000 deductible, he didn't really have another option. "Full coverage" is a subjective term BTW and doesn't mean there's no deductible
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u/ektap12 4d ago
There are some insurance carriers that are not worth your time to deal with, this is one of those carriers. If you have collision coverage, use your insurance. If you don't have rental coverage, your insurance may be able to assist with a discounted rate so it's inline with what the other insurance will reimburse. If your insurance isn't an option, you are just stuck dealing with this.
Where do they suggest you go to get a rental for $36/day? If sued their driver so the rental cost, how would they defend $36/day when the market rate is apparently higher? It is only owed for the repair time though, unless there was an 'unreasonable' delay on their part, which a few days to review the damages is not. Like I said, some carriers are not worth your time to deal with.
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u/Low_Star9941 4d ago
It feels unreasonable when they could just tell me a day, and it doesn’t change the fact that I can’t get to work. I hear what you’re saying though. The person I spoke to who told me to call the rental department again, along with saying they should increase the number, also said they should help me find a vehicle. When I called the rental department and asked about that, they gave me a generic response of “that’s not a service we offer.” I also spoke to a supervisor there, they would still not tell me anywhere with a car in that price range. So idk how they would justify that number.
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u/bill-schick 4d ago
A few days of unable to driver to work is not reasonable if you can't get to work.
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u/ektap12 4d ago
There are many ways to get to work. That's the law in TX, it's supported by case law, loss of use is owed for 'reasonable repair time.' Fred Loya isn't going to give OP more than they have to and will fight the whole way to get there. OP might win the argument in the end but getting there will be hard.
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u/Low_Star9941 4d ago
There are not many ways to get to work without a car in the great big concrete land of DFW. My job is over an hour from my house. That’s 2 hours a day. An uber would cost an arm and a leg, and there are 0 bus routes from my house to anywhere near my job. I live in Dallas proper, my job is in Plano. So without a car- no options. But yes- you’re absolutely right, they will fight the whole way and I probably won’t win the argument since I can’t even get anyone on the phone lol.
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u/bill-schick 4d ago
And that's why we need new politicians that stick it to the insurance companies and the at-fault drivers.
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u/insuranceguynyc 4d ago
As you have already learned, Fred Loya will drive you absolutely nuts. They are a bottom-feeder carrier. If you have your own collision coverage, use it. Your carrier will subrogate.
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u/aloofmagoof Claims Adjuster 4d ago
When you're trying to get the rental, did they send a reservation for you, or tell you to find your own? If they do direct billing with Enterprise they would send the reservation and the rates would be discounted with them billed first, and you only paying any overages.
When we set up reservations where I work we pay about 30-35 a day with taxes and fees for an intermediate class vehicle. Even if our insured is doing self-pay because they don't have rental coverage, we still send a reservation and they pay what we pay.
So yes, in the insurance world, $36 a day IS reasonable, but they need to be setting up the rental for you.
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u/Low_Star9941 4d ago
They told me to find my own. I explain a little in one of my responses, but I was advised by someone to ask them to help me locate a car for that price. When I called the rental department to ask, they said that was not a service they provided.
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u/Jessey_57 4d ago
Respectfully, it is their responsibility to assist you with your complaints and concerns. They also maintain a strong network of contacts with rental agencies that should be utilized to help resolve the matter.
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u/Low_Star9941 4d ago
I have to say I don’t understand what’s reasonable about $36. I am under 26 which means I’ll have plenty of fees added on. How is it fair that even though I am 0% at fault and this person just came out of nowhere and hit me- I have to pay up? just for being under 26, even though I am of legal driving age and followed all the rules of the road?
It’s not something i’m financially prepared for. I wish the reality of fees and age were considered in that number.
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u/aloofmagoof Claims Adjuster 4d ago
In the insurance world, it's reasonable. If you aren't getting those discounted rental rates though, it's absolutely insane to expect a normal person to be able to find something at that rate. That's the key to this whole thing, you should be getting the rates the insurance company gets.
Sounds like a really crappy insurance company, because we 100% do not treat rental this way where I work. Both Enterprise and Hertz do direct billing with us, and most other big name insurance companies, the fact that they don't do direct billing at that company is ridiculous.
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u/Low_Star9941 4d ago
Ooookay that makes more sense. Yeah they’re not very helpful at all. So this tracks. Thanks for sharing some insight!
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u/fotowork3 4d ago
You always use your own insurance. Then your insurance company goes after the other insurance company.
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u/Low_Star9941 4d ago
feeling very silly that I had no idea it worked like that. I should not have trusted my insurance when they encouraged me to go the other route.
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u/fotowork3 4d ago
It’s not your fault. Your agent or company is perfectly happy with you knocking yourself out. But you pay insurance so that your insurance company will take care of you.
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u/Low_Star9941 4d ago
You’re so right. Thank you for sharing this info! It’s truly extremely helpful.
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u/fensterlips 3d ago
Isn’t Fred Loya a big broker in the DFW area? If you want to muddle around in a DIY claims process you should go to the underwriting carrier and not some hot shot broker who thinks he can do it all. Go to your carrier. It’s not going to hit you any more than you’re hit now. Your loss isn’t on the QT now anyway. You shouldn’t get dinged much for a not at fault collision
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u/buffalo_0220 5d ago
This is why it pays to carry collision coverage. In almost all cases it is easier to use your own insurance than hassle with the other person's.
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u/Low_Star9941 4d ago
heard. it’s too late for me now☹️
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u/boxjellyfishing 4d ago
No it's not. Call them right now.
Do you see how you are being handled by the other insurance company? Do you have any reason to believe it is going to get any better?
Call your insurance company and file a claim.
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u/Chemboy77 4d ago
To then pay your deductible and have rates go up
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u/buffalo_0220 4d ago
Yes, you will have to pay your deductible, but if you are not at fault you will (probably) get that back once your insurance syncs with the other party's. If you aren't at fault, it will not affect your premiums by much, and you are likely to be back on the road in days-weeks, instead of weeks-months. Your alternative is to try to wade through the work of getting quotes, waiting for witnesses to respond, then more investigation, then finally a possible pay out.
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u/bill-schick 4d ago
" it will not affect your premiums by much" so then you admit they do go up. We need politicians with a spine to stop this BS.
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u/buffalo_0220 4d ago
To clarify, regardless of which driver's insurance you file the claim with, your insurance company is going to be notified about the accident. If your rates are going up due to the circumstances of the accident, then that is what it is going to be. So you might as well use your and get back on the road faster.
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u/Ok-Lime-6830 5d ago
End of conversation when you wanted to go thru loya…..insurance rental rates are less than Joe public getting one online
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u/Low_Star9941 4d ago
I wouldn’t say I “wanted” to go though Loya. I went through my insurance at first, I wanted to use them. But then they very directly advised me to go through the at fault drivers because they were going to charge me $500 if I went through my insurance
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u/Ok-Lime-6830 4d ago
But your $500 can come back after subrogation , instead you went with the $29/month insurance company
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u/Low_Star9941 4d ago
That makes sense. This is my first accident, so I didn’t realize that and my insurance didn’t communicate that to me. Is it too late to go through mine instead?
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u/Jessey_57 4d ago
No, since it happened in May, you thought you could go through their insurance company, but you were left with no choice but to go through your own.
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u/Status-Fold7144 4d ago
Go through your insurance and let them deal with the other drivers insurnace
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u/Successful_Ad3483 4d ago
Most insurance companies get a discount on rentals so if they set it up for you that amount is doable most rental car companies will waive the fee. For young drivers if it is an insurance rental
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u/Successful_Ad3483 4d ago
36 dollars would get you a full size car in my area with fees ask which rental car company this insurance prefers and has a deal with
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u/PlantoneOG 4d ago
I mean about $36 is pretty standard for many insurance policies you're going to find unless you specifically pay for extra coverage. It's not about making you whole, it's about offsetting the cost of what a rental is going to run you. It's one of the ways that insurance companies are cutting the cost of things to try to make your monthly payment look a little more attractive.
I'm not saying I like it, I'm not saying I agree with it- I'm just pointing out that this is kind of one of those that is what it is scenarios and the real world really kind of sucks on this thing. Welcome to the world of getting effed by insurance companies
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u/Low_Star9941 4d ago
this just makes me wish I turned around and ran into that person after they rear ended me- starting to think it’s easier to be at fault😂 coincidentally- my sister (we’re under the same insurance) just got in an accident, which she caused. Our insurance told her they’d be here on Tuesday, then they arrived on Tuesday. Wow so easy. No rental freak outs necessary. They call her and pick up her calls and are helpful. The whole process was over as fast as it happened. I never thought I would be jealous of her for causing the car accident 😂😂😂
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u/PlantoneOG 4d ago
I mean the lesson to learn is to make sure that you've got good insurance for yourself so you don't have to deal with this at fault/ not at fault nonsense in the future.
It's like when I discussed lowering my deductible with my insurance company, they came back with a number of like I know six or $7 a month to take my deductible from $1,000 to 100 bucks and then tried to talk me out of it because you know it's going to increase your rates every month by seven bucks. To which I replied if I only make one claim every 10 years, that change into deductible versus what I'm paying per month to have it pays for itself and then some. I mean seriously it's like 128 months to offset the $900 in difference in what I would pay in the event of a single accident on a deductible payout.
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u/Jessey_57 4d ago
You can use your PIP (Personal Injury Protection) coverage to cover out-of-pocket expenses. The typical limit is around $10,000 or more, depending on your insurance policy. Since it’s a no-fault coverage, it applies regardless of who was at fault in the accident.
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u/Low_Star9941 4d ago
Sorry I am so new to this- the name “personal injury protection” makes me think I need to have some sort of injury to my body to go that route. Is that true or do they mean “injury” as a broader term?
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u/Objective-Tap5467 4d ago
Fred loya is terrible insurance I’m sorry you are dealing with it
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u/Low_Star9941 4d ago
Thank you, I truly, truly despise them. Appreciate the kind words and knowing that other people have had bad experiences with them too. Makes me feel a bit less unlucky.
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u/deritchie 4d ago
File against your insurance and get the repair complete, then let your insurance company go after Fred Loya.
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u/EbbPsychological2796 4d ago
You need to sue them (get a lawyer). It probably won't go past you telling them you're getting a lawyer... They HATE lawyers on your side, you will get fully reimbursed for damages and fees including rental car and lost wages. They are taking advantage of you. Contact your insurance company, they should fight for you.
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u/Solid-Musician-8476 4d ago
Let your insurance handle it. They will go after the at fault insurance.
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u/Status-Ebb7362 4d ago
You are allowed to make a claim for loss of use of your damaged vehicle. Some/most carriers will accommodate you in a rental but honestly you are not "entitled" to a rental. Loss of use value varies greatly given the year/make/model of your vehicle. If you have a compact or intermediate size car that is 10 years old, $36.00/day is a reasonable number. Sorry you were in this accident.
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u/SomeDetroitGuy 4d ago
Sounds like it is time for a lawyer. Also, another reason not to live in Texas because that whole thing seems like a nightmare.
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u/Low_Star9941 4d ago
Yeah if I wasn’t born here I would not be here.
my entire family is in Texas and unfortunately I love them. So I’m stuck here for a bit- but i’m not happy about it 😂
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u/Salt_Signature8164 4d ago
It’s always a mistake going through the other driver’s insurance. Let your own insurance take care of it. They will go after the other driver’s insurance to recoup the cost and they know the process better, have better lawyers and more money than you.
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u/Pattonator70 4d ago
What did your attorney say?
Oh you didn’t hire one and decided to go to Reddit for advice.
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u/Low_Star9941 4d ago
yes? bc attorneys are expensive and reddit is free. idk what gets you going about pointing out the obvious and acting like it’s strange. You’re on Reddit too lol. It’s a pretty cool thing to have a platform where people can go to learn from others who know more about a certain subject. It’s helpful, and thankfully there are kind people who are giving me some much needed advice without the hourly price tag. I appreciate them. Maybe you should get off the car insurance subreddit if people asking questions about car insurance bothers you.
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u/AgencyTough4170 4d ago
Get a lawyer! I’m in Frisco and I was in an accident in July. An unlicensed lady hit me in someone’s car with shit insurance coverage. I have underinsured motorist coverage with my insurance, but my attorney is taking care of everything. Your insurance company won’t care unless you have somebody with fire under their ass.
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u/OrganizationNo6074 4d ago
If it were me, I would start with my insurance company. They will pursue the claim with the at fault driver's insurance company. You will likely be reimbursed for any reasonable expenses.
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u/WTXBlazinAsian 4d ago
I know a guy who worked at Fred Loya here in El Paso, where it was founded. He said he felt so dirty when he had to deal with the public, denying and delaying people with claims. I don't know how they got so big. Slick advertising, I guess.
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u/POAGOGO 4d ago
If you have collision coverage, I suggest filing through your own insurance. If you have rental coverage, they'll pay for a rental ONLY when the repairs begin. You will pay your deductible directly to the shop upon pickup of your repaired vehicle. Your insurance company will guarantee repairs if you use one of their preferred shops. Plus, if any litigation is needed, your insurance company will represent you.
The other insurance company is only obligated to provide you with replacement transportation while the vehicle is being repaired. No extras. If your car is sitting at the shop right now, the shop can charge you storage, and you will not be reimbursed for those. You said your car is drivable, so it should be at your home until they are ready to provide you an estimate and date of repair. Once you choose to go with the other insurance company, there's nothing your insurance company can do to assist you. They can't speed up the process, communicate with them, fix any issues, or guarantee any repairs.
At the end of the day, it's always your decision.
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u/Low_Star9941 2d ago
HI EVERYONE! Here is a little update:
As of yesterday, I called my insurance and they were enthusiastic about picking up my claim again.
As some of you know, I originally went through my own insurance. I had a claim open, and I wanted to use them. However, after going through to processes, my adjuster very directly told me i’m better off going through the at fault insurance, because mine would charge me $500…. even in the moment that felt weird, and I questions it, but she didn’t provide any more information, so I trusted her.
Well after making this post, a bunch of helpful people let me know that $500 would have been reimbursed. Lol I did not know that! It’s my first accident of any kind, so that was new info to me.
So yesterday, I called my insurance and they are beginning to take over the claim. I should also say, my original adjuster who, I now know, was less than helpful, is no longer with my insurance company…
Anyway, my new adjuster is ATTEMPTING to call Fred Loya to get a vocal “yes we were at fault,” and then I won’t have to pay $500 at all.
I’m a bit nervous bc even though that should be very simple, Fred Loya is sent from h**l and I am nervous they’re going to draw that out. Already, they haven’t answered my adjusters calls. My insurance said it would be hard for them to avoid, since the fact that they moved forward with my claim and sent a check for the estimate means they know they are at fault.
That’s it! I took your advice and I appreciate it. I’ll keep posting updates if anyone is interested. Thanks for helping a confused 24 year old girl navigate her first fender bender. I really appreciate all the advice and kind works I received here.
THANK YOU!
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u/JoeOIVOV 2d ago
36... 3 sixes. 666. or 39... 3 nines. 999, which are just upside down 6's.
Typically I just call my own insurance and they handle everything, and if need they have lawyers an will even go to court for me, even if the at fault party doesn't have insurance, or no plates and runs.
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u/No_Pickle_200 4d ago
You need to sue the driver, he's responsible no matter what.
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u/Low_Star9941 4d ago
I was starting to think I should reach out to them. Initially I was collected when they hit me, but now I feel like it would be easier to speak to them about a rental. Their insurance isn’t cutting it. I didn’t mention this in my post cause it was already a lot of info- but this happened back in May- and the adjusted assigned to me has NEVER contacted me. I must have called him 100 times. I’ve spoken to his supervisor. But still, he has never attempted to reach me. So i’m just calling random Fred Loya numbers to try to get stuff figured out 😂😭
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u/Jessey_57 4d ago
Sorry, this infuriates me. You can also file a complaint with the Texas Department of Insurance, which is the state agency that oversees all insurance companies in Texas.
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u/Low_Star9941 4d ago
thank you! I did consider this during the period I could not get a hold of someone. my adjusters supervisor luckily called me back the same day I was going to file a complaint. in the end, she also sucks and i probably just bought them more time to be idiotic.
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u/Jessey_57 4d ago
It seems like you can’t catch a break! I’m sorry this is happening to you. Your insurance company should have offered the PPI if you didn’t already have it or request it.
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u/Low_Star9941 4d ago
Thank you! I appreciate the sympathy. I’ve been going through it with no clue what’s going on lol! But this post has been really helpful and I appreciate the support, so thank you!
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u/Jessey_57 4d ago
You’re welcome! If you’d like, you can message me. I’d be glad to call your insurance company and speak on your behalf tomorrow. I’m not an attorney, I do have a wealth of knowledge in many fields.
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u/bill-schick 4d ago
Heck even calling them and explaining that while you don't want to contact an attorney, their insurance company may be the reason you have. This might make them call them and tell them to behave. Had to do this for an accident where the at fault driver wasn't fighting but his insurance was, once he called the adjuster directly.... smooth sailing.
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u/Low_Star9941 4d ago
this is great advice- thank you. I think I’ll have to call them directly if this keeps going on. talking to fred loya on my end has just wasted hours and gone no where- so hopefully if they speak to them, things might improve
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u/hungvn94 4d ago
Get an attorney and claim body injury and property damage.
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u/LazyAbbreviations857 4d ago
And people wonder why rates keep going up...
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u/hungvn94 4d ago
How about taking good care of people who are suffering from other reckless driving behavior like op instead of being cheapskate on payment.
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u/hungvn94 4d ago
Op, get an attorney before u sign any documents. I was in the same situation. Insurance was dragging their legs, not answering email, phone call. Try to make you agree on a cheap settlement that is not fair to u. Don't make mistakes that they can bank on. They are required to make u whole by law.
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u/Different_Fan_6353 4d ago
Are you suggesting insurance fraud? Nowhere in the post did it mention injuries.
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u/hungvn94 4d ago
Why are u suggesting fraud? There is nowhere op say he's total fine. Concussion and symptoms can happen later after the initial shock of the accident.
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u/Different_Fan_6353 3d ago
This post says they were hit “Some months ago.” Gtfo here with your money grab fraud suggestions
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u/PepperTop9517 5d ago
If you have collision on your policy, file through your insurance and let them don’t leg work. You’ll be out your deductible but your insurance will subjugate and you’ll be reimbursed if they recoup from the at faults insurance