Allstate's Direct Auto Insurance: What You Need To Know

Direct Auto is owned by Allstate, but it has different insurance coverage options, premiums, customer service teams, and headquarters. Direct Auto is more expensive than the average auto insurance company, with a minimum coverage policy costing around $1,327 per year compared to the national average of $671. However, when comparing nationwide averages, Direct Auto's rates are about 15% more affordable than Allstate's. Direct Auto also offers more affordable premiums for residents in Florida and Mississippi.

Direct Auto is owned by Allstate but offers different insurance coverage options

Direct Auto is owned by Allstate, but it offers different insurance coverage options. Direct Auto was acquired by Allstate in 2021, and while the two companies are separate, they are both part of the Direct General Group, owned by National General Holdings Corp.

Direct Auto offers more affordable premiums for residents in certain states, such as Florida and Mississippi, and for specific types of drivers, including young, retired, and married drivers. Direct Auto also has cheaper rates for drivers with a recent DUI on their record. On the other hand, Allstate offers more discounts than Direct Auto, and it may be a better option for drivers with excellent credit scores.

Both companies have their own customer service teams and headquarters, and they differ in terms of the states they operate in, with Allstate offering insurance in 47 states compared to Direct Auto's two.

When it comes to choosing between Allstate and Direct Auto, it is important to consider factors such as age, driving record, credit score, and location, as these can significantly impact the cost of insurance. Additionally, the type of coverage needed, such as state minimum liability or full coverage, will also play a role in determining the best option.

Direct Auto is more expensive than the average auto insurance company

When comparing Direct Auto to Allstate specifically, Direct Auto offers less expensive prices than Allstate. On average, Direct Auto's rates are about 15% per month more affordable than Allstate's. However, it's important to note that insurance rates can vary greatly depending on individual factors such as age, gender, driving record, credit score, and location.

For example, Direct Auto offers more affordable premiums for residents in Florida and Mississippi compared to Allstate. Additionally, Direct Auto is the better option for drivers with a recent DUI, with monthly rates of $165 compared to Allstate's average of $229 after a DUI. Direct Auto also has lower rates for drivers with "fair" or "poor" credit scores.

On the other hand, Allstate offers more discounts than Direct Auto, which can help reduce the overall cost of insurance. Allstate also has more affordable rates for drivers with "excellent" credit scores and those living in urban areas.

In conclusion, while Direct Auto may be more expensive than the average auto insurance company, it can still be a competitive option for certain drivers depending on their specific circumstances. It's always a good idea to compare quotes from multiple insurance providers to find the best rate and coverage for your needs.

Direct Auto offers more affordable premiums for residents in Florida and Mississippi

Direct Auto Insurance is a subsidiary of National General Holdings Corporation, which is owned by Allstate. Direct Auto is not to be confused with The General, another subsidiary of National General Holdings Corporation. Direct Auto is part of the Direct General Group, which caters primarily to high-risk drivers who cannot get car insurance elsewhere.

Direct Auto Insurance is available in 14 states, including Alabama, Arkansas, Delaware, Florida, Georgia, Louisiana, Michigan, Mississippi, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, and Virginia. The company offers customizable payments, allowing customers to decide when their auto insurance bill is due and offering several ways to pay. Direct Auto also provides SR-22 insurance forms, which prove that a driver meets their state's minimum liability coverage.

Direct Auto offers a range of discounts, including those for military members, safe drivers, good students, and customers who have insured multiple vehicles or purchased multiple insurance products. The company also offers term life insurance policies of up to $25,000, although coverage varies by state.

In summary, Direct Auto Insurance provides more affordable premiums for residents in Florida and Mississippi, but customers should be aware of the company's high number of complaints.

Allstate offers more discounts than Direct Auto

Direct Auto Insurance is part of the Direct General Group, which is owned by National General Holdings Corp. National General has owned Direct Auto since 2016 and Allstate acquired Direct Auto in 2021. Direct Auto and Allstate are separate companies with different insurance coverage options, premiums, customer service teams, and headquarters.

Allstate's wide range of discounts can be particularly advantageous for customers who are looking to maximize their savings on car insurance. The variety of discounts offered by Allstate provides more opportunities for customers to reduce their premiums and overall cost of insurance.

Additionally, Allstate's larger number of discounts demonstrates its commitment to providing customers with cost-effective options. This extensive selection of discounts allows customers to tailor their insurance plans to their specific needs and budgets.

Allstate's greater number of discounts can also enhance its competitiveness in the insurance market. By offering a broader range of discounts, Allstate may appeal to a wider customer base, including those seeking ways to lower their insurance expenses.

In summary, while Direct Auto may offer more affordable premiums in certain situations, Allstate's extensive selection of discounts provides customers with more opportunities to save money on their car insurance. Allstate's variety of discounts can be particularly beneficial for those seeking to minimize their insurance costs without compromising on coverage.

Direct Auto has a grace period of at least 11 days for payments

Direct Auto has a grace period of at least 11 days for past-due payments, which can vary depending on the state in which the policyholder resides. This grace period provides policyholders with the opportunity to make their overdue payments and maintain their insurance coverage. The specific timeframe for the grace period is determined by the state law of the policyholder's residence.

During the grace period, policyholders can pay their past-due premium to avoid a lapse in coverage. Direct Auto will send a notice of cancellation before the end of the grace period, informing the policyholder of the final date for payment. It is crucial to make the payment before the grace period ends to prevent policy cancellation and the consequences of driving without insurance.

Failing to make the necessary payment by the end of the grace period can result in serious repercussions. Direct Auto will cancel the policy, and driving without insurance can lead to fines, license suspension, and higher insurance rates in the future. Additionally, being designated as a high-risk driver can further increase insurance costs. Therefore, it is essential to prioritise making the car insurance premium payment before the final cancellation date.

The grace period offered by Direct Auto provides a valuable opportunity for policyholders to maintain their insurance coverage and avoid the financial and legal consequences of a lapse in insurance. By taking advantage of this grace period, individuals can ensure they remain compliant with state requirements and mitigate potential risks associated with driving without insurance.

Frequently asked questions