DIRECT CAR INSURANCE REVIEW 2023: Coverage & Cost

Since its inception in 1991, Direct Auto Insurance has been providing SR-22-required high-risk drivers with the non-standard car insurance coverage they need. When it comes to auto insurance, Direct Car Insurance has everything the average driver could want, but there is not much room for customization. However, roadside assistance and reimbursement for rental cars are available as add-ons through Direct Auto. AM Best gave a review of Direct Car Insurance’s financial strength and costs and awarded them an “excellent” rating. Policyholders can rest assured that Direct car insurance will be able to meet its financial commitments, including the payment of claims

Direct Car Insurance

Established in 1991, Direct Car Insurance is a non-standard company that focuses on providing coverage to high-risk drivers. People with poor credit, gaps in their insurance coverage, or a history of traffic infractions and claims are often labeled as “high-risk” motorists. In 2016, National General Insurance bought Direct Auto. And in 2021, Allstate bought National General and its subsidiaries, including Direct Auto, bringing them under its umbrella. Direct Auto has maintained its identity and stands on its own.

Direct Auto Insurance, with headquarters in Nashville, Tennessee, provides policyholders with access to more than 400 local offices across the United States. The online insurance hub of Direct Auto allows customers to get quotes, make payments, and make other policy changes remotely.

Non-Standard Insurance

Individuals who are considered high-risk drivers may be eligible for coverage from non-standard auto insurers. This may apply to you if you have multiple traffic infractions or a DUI. High-risk drivers include those who have been in several collisions as well as those who have just received their license. The high-risk category includes not only drivers who have never had insurance before or who are 70 years of age or older but also teenagers.

You could also be placed in this group if your credit is poor or if you reside in what insurance firms consider to be a high-risk area. These drivers, as well as those who require an SR-22, can get insurance through Direct Auto.

Pros

Provides SR-22 filing services to drivers who require them.
Offers high-risk car and life insurance, with discounts for bundles.
Customers have flexible payment options.

Cons

Compared to competitors, many auto insurance complaints
Offers no gap or rideshare insurance.

Direct Car Insurance Coverage

Direct offers a wide variety of coverage options for car insurance. similar Direct Auto, like many other insurers, offers the following basic policies:

#1. Liability Insurance

When you cause an accident that causes harm to another person or their property, liability car insurance pays for the repairs or medical care. Liability insurance also pays for legal representation and any settlements or judgments that result from an accident.

#2. Uninsured and Underinsured Motorist Coverage

If the at-fault driver does not have liability insurance, uninsured motorist coverage will pay for your and your passengers’ medical expenses. If the negligent driver does not carry enough insurance to cover your medical bills, underinsured motorist coverage will help pay for your and your passengers’ treatment. Other options include “property damage uninsured motorist coverage,” which pays for repairs if an uninsured driver hurts your car.

#3. Medical Payments (MedPay) Coverage

MedPay will pay for your medical bills after an auto accident, regardless of who was at fault. Limits on medical payments insurance are typically lower than those of personal injury protection (PIP), and PIP also includes benefits like compensation for lost wages.

#4. Personal Injury Protection (PIP)

No matter who is at fault, personal injury protection will cover any medical, hospital, or funeral costs that arise from an auto accident. In addition to medical expenses, PIP will pay for any lost wages or substitute services (like child care) you may need because of your injuries.

#5. Collision and Comprehensive Insurance

If you are involved in a collision with another vehicle or an inanimate object (like a pole), collision insurance will cover the costs of repairs or replacement.

When you have comprehensive insurance, repairs for things like theft and vandalism are covered, too. Accidents with animals, fires, thefts, vandalism, and damage caused by extreme weather or falling objects are all covered by comprehensive auto insurance.

Auto insurance policies typically include both collision and comprehensive coverage as add-ons. Leasing or financing companies and banks may insist that you get both if you need to drive their vehicle.

Additional Coverage from Direct Car Insurance

When you buy Direct Auto insurance, you can choose to add the following coverages:

Accidental death: If you pass away as a result of a covered accident while driving with Direct Auto, your beneficiaries will receive $5,000.
Emergency roadside assistance: This add-on benefit offers emergency roadside assistance 24/7. It includes towing, gas delivery, help if you get locked out, battery jumpstarting, minor mechanical repairs, and more.
Mexico auto insurance: If you are going to drive in Mexico, your U.S. auto insurance will not cover you, but Direct Auto does.
Towing coverage: This helps pay for tows if your car breaks down or is involved in an accident and you can not drive it. You can buy towing coverage if your policy covers collision and comprehensive damage; if not, you will have to pay for emergency roadside assistance.
Rental reimbursement: When you have collision or comprehensive coverage on your car, your insurance company will pay for a rental car while your damaged vehicle is being repaired.

Direct Car Insurance Claims

When compared to the average for all companies, Direct Auto has about six times as many customer complaints. The number of complaints is much higher than that of the largest auto insurers in the country. The most common issues with Direct Car are related to the insurance claims process, specifically delays and denials.

Direct car insurance allows customers to file claims via their website, mobile app, or by calling 800-403-1077.

How to File a Car Insurance Claim with Direct Auto

To receive compensation for your car repairs or medical bills, you must fill out a claim form and submit it to your insurance company. Direct Auto Insurance requires a police report and details about the accident, including who was at fault, how much damage was done, and who was affected.

Direct Auto Insurance allows customers to submit claims via their online account or by calling 1 (800) 403-1077. When you file a claim, you will be given a claim number and connected with a claims adjuster who will assist you from there.

Direct Car Insurance Cost

If you are looking for minimum coverage—the level of insurance needed to legally drive in your state—direct car insurance is a solid, cost-effective option. Direct Auto, on the other hand, costs more if you want full coverage car insurance.

That is true whether you get into an accident or a DUI. If you have a DUI and only get the bare minimum in coverage, your premiums will be lower than average. Direct Auto has lower-than-average premiums for base policies, but State Farm and Geico offer better deals all around.

Direct Car Insurance Locations

These states are where Direct Car offers car insurance:

Alabama
Arkansas
Colorado
Delaware
Florida
Georgia
Illinois
Louisiana
Michigan
Mississippi
North Carolina
Ohio
Pennsylvania
South Carolina
Tennessee
Texas
Virginia
Washington

Direct Car Insurance Reviews

To put it simply, Direct Auto is a division of Direct General. National General Holdings Corp., a holding company based in New York City and specializing in personal lines insurance, is the owner of their group. National General, which has been around since 1939, has an “A-” (excellent) rating from financial services firm A.M. Best thanks to its solid financial footing and consistent business practices.

In many respects, Direct Auto Insurance provides subpar services to its clients. Data from the NAIC shows that Direct Auto receives six times as many complaints as a typical business of its size. The most common issue people had with the claims process was how long it took.

Direct Car Insurance Review: Mobile App

Using the Direct Car mobile app, you can quickly and easily manage your account. Features include:

Submit a claim.
Look up the address of a nearby Direct Auto office.
You can use this service to pay your bill, check your billing history, and get account updates.
If you have paid for that coverage, request roadside assistance.
Check the specifics of your auto insurance plan, such as the discounts and coverages you are eligible for.
View your ID card for auto insurance online.

Different Kinds of Insurance from Direct Auto

In addition to car insurance, Direct Auto has other services like:

Commercial auto insurance: This provides commercial auto insurance for drivers with up to 20 vehicles in their care.
Life insurance. A term life insurance policy from Direct Auto can provide you with up to $25,000.
Motorcycle insurance. Direct Auto offers a variety of motorcycle insurance policies, including the basics (liability, collision, and comprehensive) and some extras (custom parts, replacement, etc.).
Renters insurance. In the event of a covered loss, such as a fire or theft, renters insurance from Direct Auto protects your possessions and offers liability protection in case a third party sues you.

Direct Car Insurance Review: Discounts

Direct Auto offers discounts on car insurance. Getting discounts as a driver can lower your insurance costs, which saves you money every year. Direct Auto gives a lot of different kinds of discounts, such as

Military: People who are currently in the military and can show proof of service may be able to save up to 25%.
Safe driver discounts can be as high as 10% for motorists who have not had any moving violations or accidents in the past 36 months.
Good student: Students who are single and in the top 20% of their class at an accredited high school, college, or technical institute may be eligible for a 10% discount.
Take a defensive driving course and you could save up to 5% on your car insurance if you are 55 or older.
With Direct Auto’s DynamicDrive program, you can save up to 10% by linking your driving habits tracked by the Routely app to your auto insurance premium.
Discounts of up to 10% may be available to drivers who have completed an accident prevention course or a state-approved driver education course.
A multi-vehicle discount of up to 25 percent is available if your policy covers several vehicles.
Equipment for your car: Anti-theft and safety features can cut your insurance premiums by as much as 10 percent.
Affinity. Direct Auto offers up to 5% discounts to members of affiliated organizations.
You can save up to 9% on your insurance premiums by going paperless, setting up automatic payments, or paying your premiums in full.
Direct Auto offers multi-policy discounts of up to 10% for customers who purchase two or more policies at the same time.

Who owns the Direct Auto Insurance Company?

The New York City-based property and casualty insurer National General Holdings Corp. owns Direct Auto, a division of the Direct General Group. In 2016, the National General bought Direct Auto.

How Long Has Direct Auto Insurance Been Around?

William Adair established Direct Auto Insurance on April 10, 1991. Mr. Adair wanted to create a top, non-standard auto insurance company that would exceed the expectations of all its clients. Direct Auto has been offering cheap car insurance and great service to drivers all over the country, even if they have had bad experiences with insurance in the past. Direct Auto has helped drivers in the past, and we are ready to help you find the best policy possible for your situation.

Is Direct Auto Good Insurance?

AM Best awarded Direct Auto with an “excellent” rating for its financial stability. Therefore, policyholders have nothing to worry about in terms of the company’s ability to meet its financial obligations, including the payment of claims.

Does Allstate own Direct Insurance?

Allstate owns Direct Auto, but the two businesses operate independently; for instance, Allstate’s headquarters are located in a completely different city, and the company’s insurance plans, rates, and customer service personnel are all distinct. In 2021, Allstate acquired Direct Auto.

Is Direct Auto Insurance Legit?

Despite competitive pricing, Direct Auto Insurance has a lot of dissatisfied clients. Direct Auto Insurance is a popular insurance company that provides many options for its customers.

Is Direct Auto the same as Progressive?

For drivers with excellent credit histories, Progressive offers better rates, while drivers with recent DUI convictions are better off with Direct Auto. To find the most affordable and comprehensive auto insurance policy, you should get quotes from several different companies.

Conclusion

If you cannot get auto insurance through a traditional provider due to points on your driving record, gaps in your insurance coverage, or any number of other factors, you may want to look into Direct Car Insurance.

DIRECT CAR INSURANCE REVIEW 2023: Coverage & Cost