Are the rates for Direct Auto car insurance worth the coverage you receive?
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.
In this article:
- An Overview of Direct Auto Insurance
- What Plans Does Direct Auto Insurance Offer?
- Direct Auto Insurance Quotes And Claims Process
- Direct Auto Insurance Reputation
- How Much Does Direct Auto Insurance Cost?
- What We Like About Direct Auto Insurance
- What We Don’t Like About Direct Auto Insurance
- Other Auto Insurance Providers To Consider
- Direct Auto Insurance FAQ
An Overview of Direct Auto Insurance
Direct Auto Insurance is a smaller insurance provider that has been in business for 99 years. The company offers several different plans, though its availability is limited to 11 states. It has superior financial strength rating, offers various discounts, and is recommended for high-risk drivers.
What Plans Does Direct Auto Insurance Offer?
When it comes to purchasing automobile insurance from Direct Auto, there are several coverage options to choose from. Keep in mind that coverage is only available in Alabama, Arkansas, Florida, Georgia, Mississippi, North Carolina, Ohio, South Carolina, Tennessee, Texas, and Virginia.
|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 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 incident.|
What Other 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:
- Motorcycle insurance
- Roadside assistance
- Individual term life insurance
- Accident medical expense
- Health insurance marketplace
- Emergency protection
- Mexico auto insurance
- Commercial auto insurance
Direct Auto Insurance Quotes And Claims Process
Getting a quote is simple. All you have to do is call Direct Auto or visit the company’s website, then provide some information about any drivers and vehicles you’d like to have on your policy. You can also speed up the process if you know what type of insurance you are looking for.
As for claims, no one looks forward to getting into a car accident, but sometimes there is nothing that can be done to prevent it. When these incidents occur, you want a seamless and easy claims process to relieve some of the burdens. Arguing with an insurance company is only going to make matters worse.
Thankfully, it’s easy to file a claim for Direct Auto car insurance. If you’ve been in an accident, follow these quick steps:
- Call 877-GO-DIRECT and speak with a customer service representative. Make sure you report your claim as soon as you can during the company’s normal business hours.
- Direct Auto will begin the investigation by assigning you a claims adjuster. That adjuster will contact you within one business day. You are able to talk to the team through the entire investigation to understand the damage and have your questions answered. The company even offers virtual photo inspections through MyClaimPics.
- Choose to have the repairs performed in one of the provider’s approved facilities. If you pick this route, the repairs are guaranteed for as long as you are the owner of your vehicle. You can also choose your own shop, but the repairs won’t be guaranteed.
- If the policy includes a rental car, your claims adjuster takes care of getting you set up, as well.
Direct Auto Insurance Reputation
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 an 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 a 3.5-star rating from customers on BBB and 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.
For a more in-depth look, let’s look at real customer 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.
Either way, 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
Unfortunately, Direct Auto Insurance doesn’t have any customer reviews with organizations like Trustpilot, so it’s difficult to say if any consumers are dissatisfied. You can, however, view reviews of Direct Auto’s parent company, National General Insurance Company, on BBB.
How Much Does Direct Auto Insurance Cost?
Average costs aren’t available, but we do know that Direct Auto provides all of the main coverage options you would look for with automobile insurance. You can also add on towing and roadside assistance. Part of what makes this coverage different than others is that it offers plans for those that are considered high-risk. Even if you haven’t been able to get coverage with other companies, you can likely receive protection from Direct Auto.
The flexible payment options also help this company to stand out. 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.
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.|
What We Like About Direct Auto Insurance
Direct Auto car insurance provides a long list of discounts, and even rewards existing policyholders with a renewal discount. Many insurance companies don’t think about their existing customers as much as the new ones, so this is refreshing to see.
Direct Auto is also a good fit for high-risk drivers that can’t obtain full coverage anywhere else. The company works with both people that have bad driving records and poor credit.
Additionally, it’s interesting to see that the company provides a host of insurance needs. You can handle your automobile insurance at the same time that you protect yourself with life insurance.
Finally, the company has some locations throughout the country. If you prefer to sign up in-person with an agent, that is a possibility. Otherwise, performing all of your transactions online is painless and straightforward, even following up on a claim.
Good for High-Risk Drivers
Offers a number of discount options, but is only available in 11 states across the U.S. -- get a quote to find out if it's available for you.
What We Don’t Like About Direct Auto Insurance
While the company claims to have a quick turnaround time, some of the reviews and complaints suggest otherwise. On top of that, we noticed that Direct Auto is not listed as a provider in most industry studies, like the J.D. Power 2018 U.S. Auto Claims Satisfaction Study. This lack of information makes it difficult to put trust in the small company.
The most obvious disadvantage to Direct Auto is that it is only available in 11 states. If you aren’t in one of those areas, you can’t get coverage. If you are in one of those areas and you move to a new state, your coverage won’t carry over.
Other Auto Insurance Providers To Consider
While we think Direct Auto Insurance might work for some people, it surely won’t have a policy for everyone. There is a large portion of the population that can’t even access coverage. That’s why we would like to recommend a few other providers. Even if you’re considering Direct Auto, it’s always wise to get a few quotes and do some shopping for car insurance.
We recently reviewed the most popular providers in the industry for things like cost of coverage, customer satisfaction, and additional perks. Here are two of the providers that came out on top, each earning 4.5 out of 5 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.
Best Company Overall
Our 2nd favorite and best for those ineligible for USAA: Offers competitive pricing and great coverage.
Along with all of the basic types of 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.
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.
Most Popular Car Insurer in the U.S.
Our 4th pick: Most popular auto insurance company that services over 83 million policies.
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. With State Farm, insurance is also available for motorcycles, boats, ATVS, motorhomes, and more.
Direct Auto Insurance FAQ
Where is Direct Auto Insurance available?
Direct Auto car insurance is primarily based in the southeastern United States. You can obtain coverage in 11 states, including Alabama, Arkansas, Florida, Georgia, Mississippi, North Carolina, Ohio, South Carolina, Tennessee, Texas, and Virginia.
Does Direct Auto Insurance have an app?
While most auto insurance providers have an app, Direct Auto doesn’t. The company claims it is working on producing something for policyholders, but for now, you have to either call or use the website.
How do I cancel Direct Auto insurance?
Some changes cannot be made on your own through the website. Canceling a policy is one of the times that you will need to call the customer service line and speak with a representative.