Direct Auto Insurance: How Is It Cheap?

Direct Auto Insurance is a non-standard insurance carrier that specializes in providing coverage for high-risk drivers. The company is headquartered in Nashville, Tennessee, and is available in 14-18 states, including Florida, Georgia, Texas, and Virginia. Direct Auto offers a range of insurance products, including auto, life, health, and renters insurance, as well as various discounts that can help lower premiums. While the company has received positive reviews for its competitive pricing, it has also faced a high number of customer complaints, particularly regarding its customer service. Overall, Direct Auto Insurance is considered an average insurance company, with middle-of-the-road premiums and a high volume of customer complaints.

Direct Auto Insurance is backed by Allstate

Direct Auto Insurance is a subsidiary of Allstate, a reputable company that also backs Encompass Insurance. Direct Auto Insurance is an independent company that specializes in non-standard insurance for high-risk drivers. This includes drivers with poor credit, a lapse in insurance coverage, or a history of driving violations or claims.

Direct Auto Insurance is available in 14 to 18 states, including Alabama, Arkansas, Delaware, Florida, Georgia, Louisiana, Michigan, Mississippi, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, and Virginia. The company offers flexible payment options and a long list of discounts, including for military service members, senior citizens, good students, and safe drivers.

Direct Auto Insurance has received mixed reviews, with some customers praising the company's rates and customer service, while others have complained about issues with billing, claim handling, and customer service. The company has a high level of complaints, with the National Association of Insurance Commissioners (NAIC) reporting six times the number of expected complaints in 2023.

Direct Auto Insurance is for high-risk drivers

Direct Auto Insurance is a subsidiary of Allstate that caters to high-risk drivers who may have been denied coverage by standard providers due to factors such as poor driving records, low credit scores, or high-risk vehicle types. Non-standard insurance, also known as high-risk insurance, is Direct Auto's specialty.

Direct Auto offers a range of auto insurance policies, including commercial, personal, and motorcycle insurance, as well as roadside assistance. In addition, they provide life insurance and various other specialty auto insurance options, such as Mexico auto insurance and commercial auto insurance for fleets of up to 20 vehicles.

Direct Auto stands out for its flexible payment options, allowing customers to set their own payment due dates and choose from various payment methods, including online, text-to-pay, and cash payments to local agents. The company also offers a long list of discounts, including those for military members, safe drivers, good students, senior citizens, and multi-car policies.

However, Direct Auto has received a high number of customer complaints, particularly regarding its service quality. Its term life insurance policies also have a maximum coverage limit of $25,000, which may not meet the needs of all customers.

Direct Auto Insurance has a long list of discounts

• Military discount: Active-duty military members could save up to 25% with proper documentation.
• Senior citizen discount: Completing a defensive driving course can earn those 25 and older up to a 5% discount.
• DynamicDrive discount: Enrolling in Direct Auto's telematics program might lead to an initial saving of up to 10%, with the potential for more savings based on safe driving.
• Prior coverage discount: A discount of up to 25% may be available if you've been insured for at least six months with no more than a 90-day lapse, provided your previous insurer was not Direct Auto. The lapse period could vary by state.
• Welcome back discount: Returning to Direct Auto after a hiatus of six months or more could net up to a 6% discount.
• Payment discount: Opting for automatic payments, going paperless, or paying your policy in full might save you up to 9%.

Direct Auto Insurance has a high number of customer complaints

Direct Auto's customer reviews are mixed. While some customers praise the company's competitive rates and respectful treatment, others have criticised its claims process and customer service, citing a lack of communication and delays in compensation.

One customer wrote:

> "Bad experience with this car insurance company. I own the vehicle, and my husband had an accident with someone that is insured with them. After about two and a half to three weeks, finally got a claim number and the adjuster's name, this man never answered his phone or returned my calls, so I started calling his supervisor. He finally returned my calls after two weeks, and called me back maybe two times after that. They've also given the towing company the run-around, and just paid them last week. To sum it up, today makes 79 days (car was totaled), and today is the first time they've said anything about compensation (Total loss department), and they want to pay me $500 for loss of use days, but it's been 79 days and the law says they have to pay for each day that you are without your car up until they compensate you. I wouldn't advise anyone looking for car insurance to go to them. I give them ZERO stars."

Direct Auto Insurance offers a range of coverage options

Direct Auto also provides insurance for motorcycles and commercial vehicles, including fleets of up to 20 vehicles. For those who travel to Mexico, Direct Auto offers international coverage through its affiliate MXGA Inc. This provides peace of mind for tourists crossing the border.

Direct Auto also offers an emergency protection plan, which covers expenses such as ambulance reimbursement, hospital stays, and out-of-pocket costs.

Frequently asked questions