While the auto insurance industry has some well-known brands that spend a lot of money on advertising, there are many smaller, lesser-known organizations that serve customers well too. Direct Auto Insurance is one of these companies and we looked into what exactly they have to offer.
Whenever you shop for car insurance, we recommend getting quotes from multiple providers so you can compare insurance coverage and rates. In addition to the insurance company you choose, factors such as your age, vehicle make and model, and driving history can affect your premium, so what’s best for your neighbor might not be best for you.
Direct Auto Insurance Overview
Part of the Direct General Group, Direct Auto Insurance is a smaller insurance provider that has been in business for 99 years. The company has a superior financial strength rating, offers various discounts, and is recommended for high-risk drivers.
Direct Auto is only available in the following 11 states:
- North Carolina
- South Carolina
Direct Auto Insurance Coverage
When it comes to purchasing automobile insurance from Direct Auto, there are several coverage options to choose from.
|Liability||This basic type of car insurance is mandated by most states. It includes a level of property damage liability and bodily injury liability coverage. If you cause an accident, this car insurance policy covers the other car’s damage and medical expenses, but does nothing for you, your occupants, or your property.|
|Collision||With this protection, your property and medical bills are covered during an accident that was your fault. This coverage also takes care of damage from a hit-and-run driver. Most leased and financed cars are required to have this policy.|
|Comprehensive||A comprehensive policy covers your vehicle if it is damaged outside of an accident, such as by a storm or an animal, or if it is stolen.|
|Medical Payments||This optional coverage helps to pay for hospital, medical, or funeral bills after an accident, no matter who caused it.|
|Personal Injury Protection||PIP pays for hospital, medical, or funeral bills after an accident, no matter who caused it. PIP is often required in some states, up to a certain level.|
|Uninsured Motorist||This coverage pays for expenses caused when the at-fault driver doesn’t have liability insurance, or enough to cover the claim. Some states use uninsured motorist coverage solely for bodily injuries, but a few allow it for the property as well.|
|Rental Reimbursement||This optional plan covers the cost of a rental vehicle if your car is rendered unusable after a covered loss.|
|Towing||This optional coverage reimburses you for emergency towing costs, within the specified limits.|
|Accidental Death||Optional accidental death coverage pays $5,000 to your beneficiaries if you die from a covered accident.|
What Other Direct Auto Insurance Protection Plans Are Available?
Interestingly enough, Direct Auto Insurance isn’t just in the car business. The company provides products and services for other areas of your life. These plans include:
Direct Auto Insurance Cost
As with most insurance companies, it is hard to give an average cost for Direct Auto insurance, as several factors impact an insurance quote. It should be noted that the national average auto insurance expenditure in 2017 was $1,004.68, or $83.72 a month, according to the National Association of Insurance Commissioners (NAIC). While your car insurance quote may be close to the national average, high-risk drivers, such as young drivers or those with a DUI on record, tend to pay high car insurance rates and are not always offered coverage.
To make it easy to pay your premium, Direct Auto offers flexible payment options, meaning you can decide what day of the month to pay your insurance bill. You can also pay in person, by phone, or with text-to-pay.
Direct Auto Insurance Discounts
If you want to save money, you will be interested in the various discounts the company offers:
|Good Student Discount||If you are on the Dean’s List or have a B average in your coursework (high school or college), you can receive 10 percent off the premium.|
|Safe Driver Discount||Receive a 10-percent discount if you haven’t been in an accident for 36 months and have no moving violations.|
|Senior Citizen Discount||Policyholders 55 or older receive a 5 percent discount. Some variations exist depending on the state of coverage.|
|Multi-Car Discount||If you insure more than one vehicle, you can receive up to 25 percent off.|
|Policy Renewal Discount||If you have no lapse in coverage, you receive up to 20 percent off your renewing policy, as long as it is put in place within seven to ten days of the expiration date.|
|Welcome Back Discount||If you are a returning customer, you can get a 6 percent discount as long as you haven’t been with the company for at least six months.|
Direct Auto Insurance Reviews
Any insurance company can look good from an outside perspective. But it’s the real customers that show how the program actually operates. That’s why it’s valuable to look at providers through a magnifying glass.
Direct Auto car insurance has an “Excellent” financial strength rating, according to AM Best. While this might seem irrelevant, it’s valuable information to have. This rating indicates if the insurer has the money to pay out claims.
Direct Auto rates a A+ from the Better Business Bureau (BBB). The insurance industry doesn’t always fare well with consumers, so this is pretty exceptional. The organization also has been accredited since 1994. Sure, there are complaints about the coverage, mainly related to slower than normal response times. This type of criticism is something many car insurance companies deal with, so it’s not alarming to us.
Positive Direct Auto Insurance Reviews
For a more in-depth look, let’s look at real customer reviews. Here are a few customer reviews left on Direct Auto’s car insurance website:
“My experience was good, [and] people I talked with were courteous and pleasant. They helped me in making my decision to purchase coverage for my vehicle. Thank you all very much. A satisfied customer.”
-Tank V. from Nashville, TN
“They always go out of their way for their customers! So friendly and genuine. Definitely worth trying them for insurance! Been using Direct for a few years now.”
-Jontice C. H. from Memphis, TN
Negative Direct Auto Insurance Reviews
What’s interesting is that a lot of the negative reviews posted online seem to be for a competing insurance company, Direct Auto Insurance Company, based in Chicago, Illinois. We can’t help but wonder if Direct Auto Insurance would have even higher reviews if it weren’t for this confusion.
Direct Auto Insurance Rating: 3.9 Stars
We rated Direct Auto Insurance 3.9 out of 5.0 stars. It has coverage for high-risk drivers and a long list of discounts, including a renewal discount. On the other hand, a lack of availability and the absence of Direct Auto Insurance reviews from experts like J.D. Power are a disadvantage.
Direct Auto Insurance: Recommended Competitors
While we think Direct Auto insurance coverage might work for some people, it surely won’t have an insurance policy for everyone. There is a large portion of the population that can’t even access coverage. Even if you’re considering Direct Auto, it’s always wise to get a few quotes and do some shopping for car insurance. Both of the following providers finished near the top of our 2022 insurance study.
Geico Insurance Rating: 4.6 Stars
One of the largest car insurance companies in the nation, Geico is known for its trustworthiness and financial stability. The industry leader has an A+ rating with the BBB and an A++ rating from AM Best, which is the highest rating possible.
Along with all of the basic types of insurance coverage, Geico offers mechanical breakdown insurance, roadside assistance, and rental car reimbursement. Discounts are available for multiple vehicles, multiple policies like home and auto, safe driving, and more. Geico has high ratings across the board for customer service. It tied for third in J.D. Power’s 2019 U.S. Auto Claims Satisfaction Study after being compared to more than 20 other popular providers. Read our Geico review for more information.
State Farm Insurance Rating: 4.6 Stars
Another top choice for consumers is State Farm – and with good reason. The insurance provider has great discounts and excellent reviews for customer satisfaction. It maintains an A+ rating with the BBB and was ranked fifth out of more than 20 popular brands in J.D. Power’s auto claims satisfaction study.
State Farm offers drivers basic coverages along with specialty plans like rideshare insurance, roadside assistance, and car rental and travel expenses. You can bundle your home and auto insurance for a discount of up to 17 percent, and when you insure multiple vehicles, you can get a discount of up to 20 percent. You can also find State Farm motorcycle insurance, boat insurance, ATV insurance, motorhome insurance, and more. Read our State Farm insurance review for more information.
Direct Auto Insurance: FAQ
In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of auto insurance providers to formulate rankings of the best insurers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.
- Industry Standing: Insurers with strong financial ratings and customer-first business practices receive the highest scores in this category.
- Availability: We consider availability by state as well as exclusions for specific groups of drivers.
- Coverage: This rating is based on types of insurance available, maximum coverage limits, and add-on policies.
- Cost and Discounts: Our research team reviews sample quotes for a variety of drivers in every state. Companies with lower prices and many car insurance discount opportunities receive the best scores.
- Customer Service: We comb through customer reviews and consumer feedback studies from experts like J.D. Power.
- Technology: Auto insurers with mobile apps, advanced online services and telematics are more likely to meet consumer needs.
*Data accurate at time of publication.