Image Credit: drazenzigic on Freepik

The higher-risk driver market is catered to by Direct Auto Insurance, which offers customized coverage at a reasonable price. In this article, we review the direct auto insurance company, its prices, and its coverage. 

What is Direct auto insurance?

Direct Auto Insurance focuses on providing coverage and non-standard insurance for “high-risk” drivers. The company promotes its readiness to cooperate with drivers who have problems with their records, such as a history of collisions or drunk driving. This indicates that the business provides SR-22 coverage, which you may require to regain your driving privileges.

Furthermore, Direct Auto vehicle insurance (formerly known as Direct General) offers rates that are lower than average for basic liability coverage, but it becomes more expensive when you buy more coverage. Direct Auto Insurance operates both online and through regional offices. There are 16 states with coverage.

Available online and at more than 400 locations, Direct Auto is part of the Direct General Group, a collective of companies based in Nashville, Tennessee. This car insurance provider caters to a very specialized market. 

Note that William Adair launched Direct Auto on April 10th, 1991. His goal was to establish a top-tier, distinctive vehicle insurance business that offers top-notch support. 

What is non-standard and high-risk insurance?

A non-standard car insurance company offers protection for drivers who are considered to be high-risk candidates. This may apply to you if you have a DUI or numerous moving offenses. Both newly licensed drivers and drivers who have been in several accidents may be viewed as high-risk drivers. 

Additionally, teenagers, elderly drivers, and drivers without prior insurance coverage are all examples of high-risk drivers. You might also fall under this group if your credit is bad or if you live in a high-risk location, according to auto insurance providers. 

Finding auto insurance might be difficult for high-risk drivers because many big insurance companies won’t cover them. These drivers can get coverage from Direct Auto, along with those who require SR-22 certification. 

Affordability and flexible payment options are priorities for Direct Auto. Direct Auto is a choice to take into account if those advantages appeal to you and your driving record makes it difficult to insure.   

How does Direct Auto Insurance work?

Like other insurance providers, Direct Auto Insurance makes money by charging policyholders insurance premiums in exchange for insurance protection. The distinctive selling proposition of Direct Auto is that it provides various payment alternatives. For instance, you can purchase insurance without a checking account or credit card, and you can pay the premiums in cash in person. Additionally, you can choose the payment due date to make sure it fits your budget.

Direct Insurance Review 

By many standards, Direct Auto Insurance provides poor customer service. The National Association of Insurance Commissioners (NAIC) reports that Direct Auto receives six times the number of complaints as the average business of its size.

However, AM Best gave Direct Auto an “excellent” rating for its financial stability. This suggests that policyholders shouldn’t be concerned about the company failing to fulfill its financial commitments, such as paying claims.

800-403-1077 is the claims phone number for Direct Auto Insurance.

Direct Insurance Coverage 

To protect you, your vehicle, and other motorists on the road, Direct Auto offers a variety of auto insurance coverage alternatives. Below is a summary of each type of insurance:

  • Liability: If you cause an accident, this covers the other driver’s medical bills and lost wages.
  • Collision: This insurance covers damage to your vehicle as a result of a collision with another vehicle or item.
  • Comprehensive: This insurance pays for covered damages if your car is damaged by something other than an accident, such as vandalism or a hailstorm.
  • Uninsured/underinsured motorist coverage: This covers damage to your vehicle if someone else causes an accident while carrying insufficient insurance.
  • PIP: Regardless of who was at fault for the accident, personal injury protection (PIP) pays for medical bills and burial costs.
  • Towing insurance: This covers your towing expenses up to a predetermined limit.
  • Rental reimbursement: If you need to hire a car because of damage from a covered occurrence, this insurance will cover your expenses.
  • Medical payments: Regardless of who was at fault for the collision, this covers medical expenses. If you get hurt while walking, riding in someone else’s car, or using public transportation, this might also cover your medical expenses.

Direct auto insurance costs by state

The minimum amount of insurance you must have to drive in each state is different, as are the costs of insurance. Below is the average automobile insurance cost from Direct Auto for 11 states for both liability-only and full coverage policies.

StateAverage Monthly Quote: Full CoverageAverage Monthly Quote: Liability Only
North Carolina$65$65

Note that based on the particular driver profile of the policy buyer, actual quotes may differ.

Direct auto insurance rates by driving history

Below are the typical Direct Auto quotes for liability-only coverage and full coverage for drivers with various driving histories.

Driving HistoryAverage Monthly Quote: Full CoverageAverage Monthly Quote: Liability Only
Clean record$231$194
Speeding ticket$310$259
At-fault accident$330$277

Direct auto insurance cost by age

Teenagers and drivers under 25 typically pay a higher insurance premium than older drivers with more years of driving experience. The typical premiums by age are listed below.

Driver AgeAverage Monthly Quote

Direct Auto car insurance discounts

Driver discounts can lower your insurance premium, saving you money annually if you are eligible for them. Direct Auto provides a wide range of discounts, such as:

#1. Military: These personnel may be eligible for savings of up to 25%, provided they can present documentation proving their service.

#2. Safe driver: Drivers who haven’t had a moving ticket or accident in the last 36 months may be eligible for a 10% discount.

#3. Good student: If you’re single and enrolled full-time in high school, college, or technical school, and you place in the top 20% of your class or have at least a B average, you may be eligible for a discount of up to 10%.

#4. Senior citizen: By enrolling in a motor vehicle accident prevention course, drivers 55 and older can save up to 5% on their insurance.

#5. DynamicDrive: If you download the Routely app, which shares information about your driving habits with Direct Auto, you may be eligible for a discount of up to 10%.

#6. Driver education: If a driver completes an accident prevention course or a state-approved driver education course, they may be eligible for a discount of up to 10%.

#7. Multi-car: If your coverage covers more than one vehicle, you may be eligible for a 25% discount.

#8. Vehicle equipment: Having or installing anti-theft or car safety systems might result in savings of up to 10%.

#9. Muli-product: You might save up to 5% by including qualifying coverage from Direct Auto in your auto insurance policy, such as term life insurance, an emergency protection package, or roadside assistance.

#10. Savings from former coverage: Before moving to Direct Auto, drivers who had coverage with another insurer for at least six months without lapsing for more than 90 days may be eligible for a discount of up to 25%.

#11. Homeowner: Those who keep their insured vehicles at their residence could save up to 15%.

#12. Hello again: Former customers who left Direct Auto and then returned for coverage could save up to 6%.

#13. Affinity: Members of a group that works with Direct Auto may be eligible for discounts of up to 5%.

#14. Discounts on payments: You might save up to 9% by setting up automatic payments, paying off your insurance in full, or selecting paperless billing.

#15. Multiple insurance: Direct Auto offers discounts of up to 10% when you buy two or more policies.

What is the Direct Auto Insurance BBB Rating?

Despite having an A+ rating with the BBB, Direct General Auto Insurance has received two-star or below ratings in recent customer satisfaction surveys. When obtaining a car insurance quote to compare to offers from other auto providers, it appears that Direct General should enhance their customer service.

Direct Auto Insurance Lawsuit

A class action lawsuit was brought in July 2014 against Direct Auto Insurance Company, the first insurance provider under the Direct General Group, because it sold auto insurance to communities of color at extremely low prices compared to its rivals but refused to pay out on submitted claims. 

Is Direct Auto a good insurance company? 

AM Best gave Direct Auto an “excellent” rating for its financial stability. This suggests that policyholders shouldn’t be concerned about the company failing to fulfill its financial commitments, such as paying claims.

Is Direct Auto a legitimate insurance company? 

For policies that satisfy the bare minimum standards needed to lawfully operate a vehicle—commonly referred to as minimal coverage—Direct Auto is a reliable, reasonably priced firm. However, if you choose to purchase full-coverage auto insurance, Direct Auto becomes the more expensive choice. It still applies if you get into an accident or get a DUI.

How long has direct insurance been in business? 

William Adair established Direct Auto Insurance on April 10 of that year. Mr. Adair had a vision for a top-tier, unconventional vehicle insurance business that provided superior customer service to all other insurers.

What kind of insurance is Direct Auto?

Direct Auto Insurance is a company that offers insurance but does not employ brokers or agents. Typically, direct insurers market their products online or through contact centers, often known as call centers. 

What insurance company is most reliable? 

The most reliable Insurance Companies are:

  • American Family
  • Auto-Owners
  • Nationwide
  • USAA
  • Geico
  • Travelers
  • Westfield
  • Erie
  • Progressive
  • State Farm

Who owns Direct Auto Insurance? 

Direct Auto is a component of the Direct General Group, which is controlled by the New York City-based property and liability insurer National General Holdings Corp. Direct Auto has been a part of National General since 2016.

Is direct auto the same as progressive? 

Direct auto and progressive are not equivalent since they differ in ways like:

  • In general, Progressive offers slightly higher rates than Direct Auto.
  • For customers who live in the suburbs, Direct Auto offers cheaper rates.
  • For drivers with a speeding ticket on their record, Progressive is typically a significantly more reasonable option.

Who bought direct insurance?

Direct Auto has been owned by National General since 2016.

US AGENCIES AUTO INSURANCE: Everything You Should Know

How to Plan for Your Auto Insurance Deductible






Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like