Direct Auto Insurance: Is It Worth The Hype?

Direct Auto Insurance is a non-standard car insurance company that specializes in policies for high-risk drivers. It was founded in 1991 and is headquartered in Nashville, Tennessee. The company has received an A+ rating from the Better Business Bureau and a 4.0/5 rating from WalletHub users. However, it has also attracted a high number of customer complaints, with a complaint level that is about six times higher than the nationwide industry average. These complaints primarily relate to issues with claim handling, including claim delays and denials. Overall, Direct Auto Insurance is considered an average insurance company, with competitive pricing but a high volume of customer complaints.

Direct Auto Insurance has a high volume of customer complaints

Direct Auto's complaint level is about six times higher than the nationwide industry average, and this is substantially higher than most of the nation's largest car insurance companies. The company's insurance complaints tend to be about claim handling, including claim delays and denials.

For example, one customer complained that their car was hit in August 2023, and it took Direct Auto Insurance nine months to take responsibility for the accident and repair their vehicle. Another customer complained that their claim was denied because Direct Auto claimed that the car that hit them was not on the policy, even though they had been given the policy number.

In addition to complaints about claim handling, there are also complaints about customer service, billing issues, and policy changes. One customer reported that their policy was cancelled without notice, and when they tried to reinstate it, Direct Auto kept asking for additional documentation, leading to a delay in getting their policy reinstated. Another customer reported that their car insurance premium suddenly increased from $390 to $990, and when they asked a representative about it, the response was, "You know how insurance goes up."

Overall, while Direct Auto Insurance may be an option for high-risk drivers who have difficulty finding coverage elsewhere, the high volume of customer complaints suggests that there may be better options available.

The company specialises in insurance for high-risk drivers

Direct Auto Insurance, founded in 1991 and headquartered in Nashville, Tennessee, specialises in insurance for high-risk drivers. The company offers insurance in 14 states, including Alabama, Arkansas, Florida, Georgia, Louisiana, Michigan, Texas, and Virginia.

Direct Auto 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 owns National General. Despite these connections, Direct Auto, National General, and Allstate operate independently of one another.

Direct Auto Insurance offers a range of insurance products, including auto, life, health, and renters policies. The company provides basic coverage options such as bodily injury liability, property damage liability, personal injury protection, and medical payments. It also offers extra coverage options like rental reimbursement, towing, accidental death coverage, and individual term life insurance.

Direct Auto Insurance has received mixed reviews from customers. While some appreciate the company's affordable premiums and flexible payment options, others have complained about issues with policy coverage and customer service. The company has an average rating of 4.0/5 from users and an A+ rating from the Better Business Bureau (BBB). However, its NAIC rating of 10.92 indicates that it has more customer complaints than the average competitor, adjusted for size.

In summary, Direct Auto Insurance caters to high-risk drivers who may have difficulty obtaining coverage from other insurance companies. While the company offers competitive pricing and a range of insurance options, prospective customers should be aware of the higher number of customer complaints compared to other insurers.

It offers a range of discounts to customers

Direct Auto Insurance offers a wide range of discounts to its customers, which can make its coverage more affordable. The company provides a discount of up to 25% for those who pay their policy in full, 5% for setting up automatic payments, and 1% for going paperless. Additionally, Direct Auto offers discounts for the following:

• Being a military member
• Being a senior citizen
• Being a full-time unmarried student
• Completing an accident prevention course
• Insuring multiple vehicles
• Having a clean driving record for three years
• Renewing a policy within seven to ten days of the expiration date
• Having anti-lock brakes in your car
• Prior insurance coverage
• Multi-car insurance
• Completing an accident prevention course or a state-approved driver education course
• New or safe vehicles
• Adding roadside assistance, term life insurance, or an emergency protection plan to the policy
• Previous insurance with another provider
• Homeownership
• Previous Direct Auto policyholders
• Membership of Direct Auto's partner organisations
• Purchasing multiple policies from Direct Auto

Direct Auto also offers a DynamicDrive program, which tracks driving behaviour through the Routely app. Signing up for the program earns customers a discount, and safe drivers may receive an additional discount upon renewal.

Direct Auto Insurance is only available in a limited number of states

As such, Direct Auto Insurance may be a good option for those who have struggled to find an insurance company that will sell them insurance due to their driving record, insurance coverage lapses, or bad credit. However, it is worth noting that the company has received a high number of complaints relative to its size and has been criticised for its handling of collision claims.

Despite its limited availability, Direct Auto Insurance offers a range of insurance options, including auto, life, health, renters, commercial auto, and motorcycle insurance. The company also provides several discounts and flexible payment options for its customers.

The company offers flexible payment options

Direct Auto Insurance, founded in 1991 and headquartered in Nashville, Tennessee, offers flexible payment options to its customers. The company provides customizable payments, allowing customers to decide the due date of their auto insurance bill. They also offer a range of payment methods, including phone payments with text-to-pay and in-person payments. Direct Auto Insurance is committed to making insurance accessible and convenient for its customers by providing choices and adaptability in their payment processes.

The company's flexible payment options are a significant advantage for customers who value convenience and the ability to align their insurance payments with their financial preferences. This flexibility can help customers manage their finances more effectively and ensure timely payments. Direct Auto Insurance's approach to payment options demonstrates their understanding of customers' diverse needs and their commitment to providing a positive and tailored experience.

In addition to flexible payment options, Direct Auto Insurance also offers a range of insurance products, including auto insurance, life insurance, and motorcycle insurance. The company specializes in providing insurance for high-risk drivers and is available in multiple states, including Georgia, Texas, and Virginia. They also have an A+ rating from the Better Business Bureau (BBB) and a range of discounts available for customers.

Direct Auto Insurance's flexible payment options and range of insurance products make them a competitive choice in the market. Their focus on customer convenience and accessibility sets them apart and provides customers with a degree of customization that suits their individual needs. The company's payment flexibility, combined with their insurance offerings, contributes to a positive overall experience for their customers.

Overall, Direct Auto Insurance's flexible payment options empower customers by providing them with choices and convenience. The ability to customize payment due dates and utilize various payment methods allows customers to manage their insurance payments effectively and efficiently. This flexibility is a key differentiator for Direct Auto Insurance and contributes to a positive and tailored customer experience.

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