Direct Auto Insurance Review:: Should you buy in 2024?

What You Should Know About Direct Auto

Direct Auto began in 1991 and is now part of the Direct General insurance group. However, Direct Auto isn’t available everywhere. Only drivers in 16 states can find Direct Auto car insurance.

While Direct Auto offers coverage to any driver, it specializes in high-risk car insurance. Drivers with multiple accidents, tickets, or DUIs may find it difficult to acquire car insurance coverage since they pose a high risk of costing the insurer money.

Is Direct Auto good? That depends on the driver. While Direct Auto reviews aren’t great, the company offers coverage that may be unavailable to certain drivers. Drivers who aren’t high-risk will most likely find cheaper coverage elsewhere.

What are Direct Auto’s financial and customer service ratings?

While car insurance rates are important, an insurer’s ratings are also critical. You need to know your company will be there when you need it. So, now we’ll look at how Direct Auto rates in financial stability and customer satisfaction.

A.M. Best looks at whether or not a company is financially sound. Direct Auto received an A+, showing an excellent ability to meet financial obligations. As a result, drivers can be confident that Direct Auto can pay claims without financial issues.

J.D. Power ranks companies based on customer satisfaction in specific areas like billing, products offered, and customer service for each region of the country. For example, in the Southeast region, where Direct Auto is mainly offered, the company ranked 14 out of 18.

The National Association of Insurance Commissioners (NAIC) ranks companies based on how many complaints they receive. Direct Auto has a 2.49 complaint index, much higher than the national average. Most complaints revolve around delays in claims processing and poor service.

On the other hand, the Better Business Bureau (BBB) ranks companies on how well they respond to customers. Direct Auto has an A rating with the BBB, showing a willingness to respond to customer complaints.

Direct Auto Insurance Coverage Options

While Direct Auto is considered a non-standard insurance company, it still offers traditional car insurance coverage. In addition, Direct Auto provides all of the coverage necessary to meet state requirements.

Car insurance coverages offered by Direct Auto include:

• Liability insurance. Most states require bodily injury and property damage liability. Liability coverage kicks in to cover damages to others if you cause an accident. However, it doesn’t protect you or your vehicle.

• Collision insurance. Collision coverage pays for damages to your vehicle from an accident or hit-and-run driver. Collision pays to repair your vehicle if you hit another car or an object like a tree. Car lenders typically require this coverage.

• Comprehensive auto insurance. Comprehensive covers damage to your vehicle unrelated to an accident, such as theft, vandalism, fire, falling debris, and acts of nature like fire, flood, and hurricanes. Most lenders also require this coverage.

• Medical payments. This coverage helps pay for medical, hospital, and funeral costs associated with an accident. It also covers you if you’re in another vehicle, walking, or riding a bike.

• Personal injury protection (PIP). PIP also pays for medical costs and includes related expenses such as lost wages and childcare. A few states require PIP coverage, but it is mostly optional. In addition, coverage isn’t available in all states.
• Uninsured motorist coverage. This coverage pays for damages caused by a driver with either no or very little liability coverage. While some states only include bodily injury under uninsured motorist coverage, others also include property damages.

Note that Direct Auto doesn’t carry some car insurance coverages that traditional insurers typically include. Missing products include GAP and rideshare coverages.

What are add-on car insurance coverages available from Direct Auto?

In addition to standard car insurance coverages, Direct Auto offers other coverages and features that you can add to your policy. However, remember that each add-on can increase your car insurance rates.

Roadside Assistance

Inevitably, you’ll have a breakdown or flat tire and wind up on the side of the road needing help. Fortunately, most car insurance companies, including Direct Auto, provide roadside assistance.

Direct Auto offers 24/7 roadside assistance if you have full coverage. Services covered include towing, fuel delivery, jump starts, locksmith services, and mechanical help. However, you still must pay for items such as gas, new keys, or a new battery if needed.

Additionally, you can only add roadside assistance coverage when you sign up or renew your Direct Auto policy. However, many other insurers allow you to add roadside assistance throughout your policy, provided you have collision and comprehensive coverages.

Rental Car Reimbursement

If your vehicle is in the repair shop for a covered claim, rental car reimbursement pays for a rental car. However, you must have collision and comprehensive coverage to add this feature to your policy.

In addition, Direct Auto limits the coverage amount and length of time a rental car is paid. Carefully review your policy to know the time and cost limits.

Accidental Death Coverage

Accidental death coverage pays $5,000 if death occurs in a covered accident in your vehicle. While the benefit amount is low, it does add peace of mind that your family will receive a benefit to help pay medical or funeral expenses.

Mexico Auto Insurance

If you travel to Mexico, you need additional car insurance coverage. Mexico requires drivers to have Mexican liability coverage. If you don’t have the proper coverage, you can be detained and possibly face jail time.

Direct Auto partners with MXGA, Inc. to provide American drivers the coverage they need to drive in Mexico, whether for a short trip or more long-term coverage.

Payment Customization

Direct Auto includes payment customization for all drivers. For example, you can choose your payment dates, pay in advance or in installments, and make a downpayment to lower your monthly payments.

Direct Auto provides multiple payment options and flexible billing dates to ensure drivers can easily pay for their car insurance.

For example, drivers can pay online, over the phone, through the app, or with cash in person. Drivers can also text in their payment information or set up automatic payments.

What are other types of insurance offered by Direct Auto?

In addition to car insurance, Direct Auto offers multiple insurance products.

Other types of Direct Auto insurance options include:

• Renters
• Term life insurance
• Accident medical expense
• Medicare
• Health insurance
• Commercial auto insurance
• Motorcycle

Drivers can bundle their auto coverage with other insurance products to receive a multi-policy discount of up to 5%.

It should be noted that Direct Auto doesn’t carry homeowners insurance, but drivers can get a homeowners discount, which many drivers may need.

Read more: Can auto and motorcycle insurance be bundled?

Direct Auto Insurance Rates Breakdown

Whether or not Direct Auto’s pros outweigh the cons is up to each driver. Drivers who need high-risk car insurance may find the insurer meets their needs. However, drivers who value customer service or need additional coverage may not find Direct Auto a good choice.

Is Direct Auto car insurance expensive?

Many factors affect the cost of car insurance, including your coverage, age, driving record, ZIP code, and credit score. Since these factors vary by driver, rates also widely vary.

Although Direct Auto provides coverage to high-risk drivers, rates are typically above the national average. High rates result from the increased risk Direct Auto takes by insuring drivers who are likely to cost them money in claims.

Keep reading as we discuss average rates for drivers in certain categories.

Direct Auto Rates Based on Minimum and Full Coverage

Most states require at least a minimum amount of auto insurance to drive legally. Typically, liability coverage is mandatory, but it doesn’t provide any protection for your vehicle.

Most experts suggest full coverage auto insurance, combining mandatory, collision, and comprehensive coverage. With full coverage, your vehicle is protected in an accident.

This table shows average monthly Direct Auto car insurance rates for minimum and full coverage compared to the national average.

As you can see, Direct Auto car insurance rates are significantly higher than the national average. In addition, full coverage costs more than minimum coverage.

Although lower monthly rates are attractive, remember that you’ll have to pay out of pocket for repairs if you don’t have full coverage.

Direct Auto Rates for Teens

Teen drivers see the highest car insurance rates since they lack the experience necessary to avoid accidents. Car insurance companies know that they run a risk of paying more claims for inexperienced drivers. Direct Auto car insurance rates for teens are close to the national average. However, rates are still high compared to other age groups.

This table shows the average monthly Direct Auto car insurance rates for teens compared to the national average.

It should be noted that male car insurance rates tend to be higher than female rates. This is because, statistically, male drivers are more likely to take risks than female drivers, so car insurance companies charge higher rates. Find the best auto insurance for teen drivers.

Direct Auto Rates for Young Adults

As drivers age, car insurance rates typically decrease. As a result, young adults see some relief from the high rates teen drivers see, but rates are still significantly higher than for older drivers.

This table shows the average monthly Direct Auto car insurance rates for young adults compared to the national average.

Young adult car insurance rates are significantly lower than rates for teens. In addition, Direct Auto’s young adult rates are similar to the national average. Find the best auto insurance for young adults.

Direct Auto Rates for Adults

Adult car insurance rates tend to decrease once a driver turns 25. However, many factors, such as their driving history, play a significant role in determining rates.

This table shows the average monthly Direct Auto car insurance rates for adults compared to the national average.

Direct Auto’s adult car insurance rates are slightly higher than the national average. However, these rates are for drivers with a clean driving record. Rates increase significantly for high-risk drivers.

Direct Auto Rates for Seniors

Senior drivers find some of the lowest car insurance rates available. Years of experience behind the wheel and many seniors spending less time on the road leads to decreased car insurance rates.

This table compares the average monthly Direct Auto rates for seniors with the national average.

Direct Auto’s senior car insurance rates are above the national average. Note that car insurance rates tend to increase once a driver turns 65. After that, insurance rates begin to increase due to possible medical issues and slower reaction times of older drivers. Find auto insurance for older adults here.

Direct Auto Rates After an Accident

Your driving record plays a significant role in determining your car insurance rates. Direct Auto offers coverage to high-risk drivers, including those with multiple accidents on their records.

This table shows the average monthly Direct Auto car insurance rates for drivers with one accident on their driving records compared to the national average.

Direct Auto car insurance rates after an accident are higher than the national average. Keep in mind that high-risk drivers may have multiple accidents on their driving records, increasing these rates significantly.

Direct Auto Rates After a DUI

A DUI conviction leads to fines and higher car insurance rates. Multiple DUI convictions cause your car insurance rates to skyrocket.

This table shows the average monthly Direct Auto rates with one DUI on your driving record compared to the national average.

Direct Auto rates with a DUI are slightly lower than the national average. However, multiple DUIs increase rates significantly. Find out how to get auto insurance after a DUI.

Direct Auto Rates After a Speeding Ticket

A speeding ticket also raises your car insurance rates. While some insurers overlook your first speeding ticket, most increase rates.

This table shows the average monthly Direct Auto car insurance rates for drivers with one speeding ticket compared to the national average.

Direct Auto’s monthly rates after a speeding ticket are slightly higher than the national average. Additionally, more than one ticket can increase those already high rates.

Direct Auto Rates Compared to Other Top Insurers

Many of the top car insurance companies also provide coverage to high-risk drivers. However, rates vary since each insurer has its own method for calculating rates.

This table compares average monthly rates from Direct Auto and top car insurance companies to give you an idea of how Direct Auto’s rates stack up to the competition.

Although Direct Auto isn’t as widely available as the top insurance companies in the country, it’s essential to compare rates to determine if Direct Auto is a good choice.

Only Allstate, Farmers, and Liberty Mutual are more expensive than Direct Auto. Drivers with a clean driving record may not find the cheapest car insurance with Direct Auto.

Direct Auto Discounts Available

As with most car insurance companies, Direct Auto offers a variety of car insurance discounts to help drivers get the lowest rates possible. Discounts are broken down by driver, policy, and vehicle.

Direct Auto car insurance discounts based on the driver include:

• Safe driver discount. Drivers with no accidents or tickets in the last three years can save up to 10%.

• Military and veterans insurance discount. Active service members save 25% on car insurance by providing a copy of their orders.

• Senior citizen discount. Save up to 5% if you’re 55 or older and complete a defensive driving course.

• Driver education. Save up to 10% if the primary driver completes a defensive driving course, or an under-21-year-old driver completes a driver’s education course.
• Good student. Save up to 10% if an unmarried full-time student has a B average or is in the top 20% of their class.

Direct Auto policy-based discounts include:

• Multi-policy. Save up to 10% if you bundle more than one Direct Auto policy, such as auto and renters.

• Multi-product. A discount of up to 5% applies if you bundle multiple products on your policy, such as life insurance and emergency protection.

• Homeowners. Save up to 15% if you own your home, townhome, or condo. However, mobile homes aren’t included in the discount.

• Prior coverage. Get up to a 25% if you’ve had continuous coverage for the last six months, but Direct Auto coverage doesn’t count. It must be with another insurer and no more than a 90-day lapse in previous coverage.

• Welcome back. Save up to 6% if you’ve previously had Direct Auto insurance, not within the last six months.

• Affinity. Save up to 5% if you’re a member of a Direct Auto partner organization. You must call or speak with an agent for a list of partners.
• Payment. Get up to a 9% discount if you pay your balance in full, opt for paperless billing, or set up automatic payments.

Vehicle discounts from Direct Auto include:

• Multi-car. Save up to 25% if you list more than one vehicle on your car insurance policy.
• Vehicle equipment. Get up to a 10% discount if your car has safety features or anti-theft devices.

Keep in mind that not all discounts apply to your entire policy. In addition, some discounts only apply to specific coverage. For example, vehicle safety feature discounts only apply to collision and comprehensive coverage.

Does Direct Auto DynamicDrive provide a discount?

DynamicDrive from Direct Auto is a usage-based auto insurance discount program. The Routley app uses telematics to monitor driving behaviors. As a result, safe drivers can save up to 10% on their policy. DynamicDrive is free to use through the Routely app.

In addition, Direct Auto immediately applies your 10% discount as soon as you begin participating. Your discount may change at your renewal based on how well you drive. While your discount amount may be reduced for poor driving, your rates won’t increase.

Other car insurance companies with similar programs issue a discount once a monitoring period is complete. A few insurers even raise your rates if you show risky driving habits.

How can you get cheaper Direct Auto car insurance?

Since car insurance rates are so expensive, it’s essential to lower rates as much as possible. Fortunately, there are ways to reduce Direct Auto rates and save money.

Ways to lower Direct Auto rates include:

• Only get the coverage you need. While full coverage offers the most protection, you may not need the extra coverage. Also, consider removing add-ons, such as roadside assistance and rental reimbursement.

• Raise your deductibles. Increasing your deductible means paying more out of pocket for repairs, but your overall car insurance rates are lower.

• Strive for a clean driving record. In most states, infractions stop affecting car insurance rates in three to five years. Avoid adding more dings to your driving record to get lower rates.

• Purchase a less expensive vehicle. New or expensive cars cost more to insure since repairs and replacement costs are more. Opt for a safe, less expensive vehicle to keep rates low.

• Bundle cars and other types of insurance. Direct Auto offers multi-car and multi-policy discounts for drivers who use the company for all their insurance needs.
• Take advantage of car insurance discounts. Direct Auto provides multiple discounts based on the driver, vehicle, and policy. Also, DynamicDrive offers a discount for participating in the telematics program.

Doing everything possible will lower your car insurance rates significantly. However, shopping around is essential to find the cheapest coverage available. Each company weighs your factors differently and offers different rates.