Direct Auto Insurance Review
Operating in the south in just 11 states, Direct auto insurance sets itself apart as a non-standard insurance carrier that focuses on high-risk drivers that have once had poor credit or bad driving record. It offers lots of discount opportunities for customers including safe drivers, good students, senior citizens, policy renewals, and more.
The products offered by Direct auto insurance come with broad standard features. Asides comprehensive and liability protection, it also offers options such as roadside assistance, rental reimbursement, accidental death coverage, owing reimbursement, etc.
Though the Direct auto insurance company offers lots of discounts, as well as reliable protection, the customer service complaints received has been just above average. Therefore, this insurance is best for high-risk drivers that have been struggling to get a policy at a reasonable price elsewhere.
Direct Auto Insurance has been in the business since 1991 and has formed a part of the National General Holdings. Though it focuses majorly on car insurance, the company also offers rental coverage, life insurance, commercial car covers, and motorcycle covers. Direct auto insurance may offer its services in just 11 states and claims can only be made through phone, but the company still has a lot to offer, and it’s worth trying.
Better Business Bureau
NAIC Complaint Index
PROS
- Discounts
- Customized services
CONS
- Limited Coverage
- Absent in most industry studies
Customer Satisfaction Ratings
- A+ on BBB: BBB assigns ratings from A+ (highest) to F (lowest). BB ratings are based on information in BBB files with respect to factors such as business's complaint history with BBB, type of business, time in business, transparent business practices and more.
- NAIC: 6.06 – This score gives insight into actual policyholder sentiments toward their policy provider. The baseline complaint index is set at 1.00, so a company with a complaint ratio of 2 for example, has received two times the national market average of complaints annually.
- A on A.M Best: AM Best uses its rating system to judge the strength of a company’s financial holdings and assets.
Basic Coverage
Liability insurance is the most important type of auto insurance offered by Direct auto insurance. Some drivers may refer to this coverage as “minimum auto insurance” or “liability only”. Generally, this includes property damage liability coverages and bodily injury liability
- Bodily Injury Liability – This helps in paying for death or injury that occurs due to an accident caused by someone or you while driving your car. With this liability, your medical expenses are covered.
- Property Damage Liability – This reimburses others for damages imposed on another property or vehicle, like a utility pole or building, in an accident caused by either someone or you while using your car.
Extras
Here is some extra coverage you can find – part of them should be considered as part of your basic insurance:
- Comprehensive and Collision – Both are usually bought together. Comprehensive helps to pay for damages caused to your car if it gets damaged or is stolen, but not caused by a collision. Collision, on the other hand, helps in repairing your car if it gets hit by an object or by a driver.
- Medical Payments – This stands in to pay for your hospital, medical, and funeral expenses, during a car accident, no matter who caused the accident.
- Rental reimbursement – This reimburses you for your car cost in case your vehicle cannot be driven due to a car accident.
- Accidental Death – If you die due to a covered accident, $5000 will be paid to your beneficiaries by your accidental death coverage.
- Towing – Towing coverage will reimburse or cover you for emergency costs of towing (up to the selected limit) if your vehicle can’t be driven or breaks down after an accident.
How to Get a Quote
Step 1: Visit www.directauto.com and click on ‘start auto quote’.
Step 2: Fill in the necessary details, like name, phone, Email, birthdate, address, and click continue.
Step 3: Continue with the process, filling in the right details and information and you will get your quote delivered to you.
How to File a Claim
Filing a claim is very easy. Just follow these steps:
Dial 877-GO-DIRECT and then a customer service representative will speak to you. Ensure the claim is reported during the company’s normal business hours.
The company will immediately start the investigation. You will be assigned a claims adjuster. You will be contacted by this adjuster within a business day.
Choose one of the company’s approved facilities for your repair. If you follow this route, you are sure to have your repairs done so fat you own the vehicle. You may also choose your desired shop, but there will be no guarantee for repairs.
As is with every insurance company, there are some strength areas and some areas of weakness. Here's what you should know about Direct car insurance:
Benefits
- Flexible Payments
With direct auto insurance, you get to decide how much and when you want to pay every month based on whatever budget you have. You can also make payments online, at any of the 400 Direct Auto offices, by mail, or through text.
- Customized services
With this insurance company, users are provided with customized services. A Direct Auto agent will be assigned to you to guide you through the whole process and deliver answers to questions concerning the right coverage for you.
- Discounts
Direct auto insurance provides safe drivers, military members, etc., with discounts, with extra savings for bundling coverage. Some of these discounts include military, homeowner, affinity, multipolicy, good student, mileage, safe driver, and more.
- DirectDrive app
With the company’s DirectDrive app, users can use their smartphones to access identity cards, log car trips, and monitor their driving behavior.
Drawbacks
- Customer service
The customer service of the Direct auto insurance company isn’t impressive. Reading online reviews and complaints tabled before the BBB and the National Association of Insurance Commissioners, it shows really low ratings.
- Absent in most industry studies
We discovered that Direct auto insurance company isn’t included as a provider in many industry studies such as the U.S. Auto Claims Satisfaction Study conducted by J.D Power in 2018. With this lack of information, it is difficult for customers to put their trust in the company.
- Limited Coverage
This insurance company offers limited coverage. Currently, they only offer their services in just 11 states. If you are residing outside this territory, then you have to get coverage from somewhere else.
- Claims can only be made through phone
Currently, you can only file a claim on Direct auto insurance through phone. This cannot be done through the company’s app or online.
Direct auto insurance boasts superior financial strength and offers different discounts; it works well for high-risk drivers. The parent company of the Direct auto insurance – Direct General, is accredited on the website of the Better Business Bureau, with an A+ rating, with respect to customer complaints.
AM best gave ratings for Direct auto insurance for three subsidiaries; each got an A- (excellent) ratings, but due to some reasons, the Nashville location of the company (its headquarters) was not rated.
| Type | Company | Rating |
|---|---|---|
| Customer satisfaction | Better Business Bureau Consumer complaint rating | A+ |
| Customer satisfaction | J.D. Power customer satisfaction score | Not available |
| Financial strength | A.M. Best financial strength rating | A- |
| Financial strength | Standard & Poor’s (S&P) | Not available |
| Customer satisfaction | NAIC complaint index | 6.06 |
Concerning the customer score of the Direct auto insurance compiled from more than 450 reviews, it is rated just 3.5 out of a total of 5 stars. Many customers seem to be dissatisfied with the customer service offered by the company, coupled with a lack of coverage and rejected claims.
However, its different coverages ensure you get the right insurance protection. However, it is very important you conduct research and then compare different insurers before settling for one.
Discounts
Direct Auto Insurance provides amazing discounts to suit different budgets. These discounts ensure that you are getting a reduced price but not reduced quality.
| Discount | How do you Receive it |
|---|---|
| Affinity | Active members of an organization that have formed a partnership with Direct auto insurance can get a discount of 5%. |
| Good student | As an unmarried full-time college, technical, high school, or vocational school student, you are entitled to a discount of 10% if you meet the standards set by the company. |
| Military | Active members of the military are entitled to a discount of 25% |
| Safe driver | Get a 10% discount after getting a 36 months history free of accidents and tickets with the company. |
| Multipolicy | You can get a discount of 5% when you add another coverage to the car insurance got from Direct auto insurance |
Direct Auto Insurance FAQs
Where is Direct Car Insurance car insurance available?
Direct Car insurance is a smaller provider that has a limited coverage area of just 11 states. This includes Florida, Georgia, Alabama, Arkansas, Ohio, North Carolina, Mississippi, South Carolina, Texas, Tennessee and Virginia. So unless you are within these states, you will struggle to obtain a policy with this insurer.
Is Direct Car Insurance a good place to get car insurance?
Direct Car Insurance offers a number of coverage options and additional protection plans that allow you to tailor your policy to suit your requirements. If you are within the coverage area, you are likely to find that this provider offers average rates with flexible payment options. However, if you are classified as a high risk driver, you may not be offered coverage.
Is Direct Car Insurance better than Erie?
Both Direct Car Insurance and Erie have a small coverage area with 11 states and 12 states respectively. However, while Direct Car Insurance offers average rates, Erie has a reputation for low rates with innovative features such as rate lock. This allows you to keep your rate the same unless you change address or vehicle or need to add drivers to your policy. So, if you’re within the Erie coverage area, it is likely to be the better option for your car insurance needs.
The main advantage Direct Car Insurance has is that it advertises highly flexible payment options. However, this is offset by American Family’s mobile app that makes policy management and premium payment simple. So, overall, American Family is likely to be the better choice.
Is Direct Car Insurance better than State Farm?
State Farm has a far greater coverage area with agents throughout the US. So, you can gain easier access to policies and coverage. Additionally, State Farm has a solid reputation for offering affordable rates. Even if you have a ticket or offense on your driving record, you can still get a good price for your coverage.
So, unless you specifically need an additional protection plan that is exclusive to Direct Car Insurance, State Farm is likely to be the better option.
Is American Family better than Direct Car Insurance?
Although American Family has a small coverage area of 19 states, Direct Car Insurance is even smaller. This insurer operates in just 11 states, which may make obtaining a policy even more difficult. Additionally, while American Family has a reputation for excellent discounts, Direct Car Insurance rates are considered to be merely average.
Is Allstate better than Direct Car Insurance?
Unlike Allstate, Direct Car Insurance has a very limited coverage area, as this insurer operates in just 11 states. While Direct Car Insurance does offer numerous coverage options and plans to tailor a policy, its rates are average. Additionally, if you are a high risk driver, you may struggle to obtain Direct Car Insurance coverage.
Although Direct Car Insurance does offer a number of payment options, unless you have a perfect driving record and live in one of the 11 states, you are certain to find Allstate is the better option.
Alternatives
Here are our 2 choices of car insurance companies which can use as a great alternative to Direct Auto Insurance:
Mercury is mostly known for its auto insurance services. Though its primary customer base is in California, it also renders some of its additional insurance services in 10 other states in the US. Asides the Golden State, you can take advantage of Mercury's competitive auto insurance rates if you are in Arizona, New York, Nevada, Texas, Illinois, Georgia, New Jersey, Oklahoma, Florida, or Virginia.
Mercury car insurance products include liability protection, collision protection, comprehensive coverage, medical payments coverage, personal injury protection (PIP), uninsured/underinsured motorist coverage, and rental car coverage. The additional coverages offered by Mercury auto insurance are roadside assistance and Ride-Hailing Insurance
Low prices are one of the things that made Progressive so popular among Americans that the company even encourages you to compare its rates with other insurance providers right on its website with a price comparison tool.
You will find the company provides standard car coverage options other insurers offer (like liability, personal injury protection, medical payments, etc.) and perks (like accident forgiveness, deductible reduction, etc.) when Progressive covers you. Of course, Progressive offers other insurance products like home, life, and renters through third party companies.
