Direct Auto Insurance review 2024
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At a glance
Bankrate's take
Policyholders who have trouble finding a company that will offer them a policy due to driving activity, insurance history or credit tier might consider Direct Auto Insurance as their company of choice. Direct Auto has a long list of discount options compared to many other high-risk carriers.
- Direct Auto is part of the reputable Allstate family, signaling strong backing and industry expertise.
- Caters to high-risk drivers with tailored car insurance options, as well as providing life insurance solutions.
- There have been notable instances of customer complaints, reflecting concerns about the company’s service quality.
- Its term life insurance policies offer a maximum coverage limit of $25,000, which may not meet the needs of all customers.
Direct Auto Insurance car insurance review
Direct Auto car insurance may be an option for drivers who do not qualify for standard car insurance due to their driving record, insurance history or another car insurance rating factor. Compared to other carriers, Direct Auto’s coverage options are pretty basic. However, you may be able to purchase optional accidental death coverage, which would pay $5,000 to your spouse or other beneficiary if you passed away due to a covered accident while in your car.
Pros and cons of Direct Auto car insurance
It’s essential to look at the big picture when you’re requesting car insurance quotes, and an easy way to do so is by considering a company’s pros and cons.
Pros
- Specializes in non-standard auto policies
- Flexible payplans and due dates
- Long list of discounts could help you save
Cons
- Mobile app is not highly rated
- Coverage not available nationwide
- High number of customer complaints with the NAIC
Direct Auto Insurance customer satisfaction
When evaluating Direct Auto Insurance, it's helpful to consider third-party ratings as they can offer insights into customer satisfaction and company performance. These ratings typically assess aspects like claim handling, customer service responsiveness, and overall customer experience. However, it's important to remember that these ratings may vary based on individual experiences and specific circumstances. As such, they should be seen as one of many factors to consider, rather than definitive indicators of what every customer might experience. To get a well-rounded view, potential customers might also look at customer reviews, company financial stability ratings and compare quotes and offerings with other insurers.
Direct Auto Insurance claims satisfaction
Although inexpensive premiums and coverage options are important metrics to use when evaluating an insurance company, you may also want to consider customer satisfaction when shopping for the best car insurance company. To measure this, Bankrate’s insurance editorial team analyzes third-party customer satisfaction scoring from J.D. Power and AM Best ratings for financial strength. For our analysis, we looked at the AM Best rating for Direct Auto's parent company, National General.
| Study or Rating Agency | Direct Auto | Industry average |
|---|---|---|
| 2023 J.D. Power Digital Experience Study - Service | Not scored | 702/1,000 |
| 2023 J.D. Power Digital Experience Study - Shopping | Not scored | 521/1,000 |
| AM Best rating | A+ (Superior) | N/A |
Direct Auto Insurance customer complaints
The National Association of Insurance Commissioners (NAIC) collects complaints lodged by customers against their insurance companies. Common causes for complaints include issues with a claim denial or delay or being unhappy with a settlement offer. Using these complaints, the NAIC assigns carriers complaint indexes by product type. Complaint indexes compare the number of complaints against a company's market share for a baseline index of 1.00. An index over 1.00 means the carrier receives more complaints than expected and vice versa.
According to the NAIC, Direct Auto’s parent company, National General, has six times the amount of complaints than expected as of 2023. This increase could be due to the company fielding 12 more complaints than it did in 2022. Based on these inconsistencies, you may want to speak with existing policyholders about their experiences with the carrier before purchasing a policy.
Direct Auto car insurance cost
The cost of car insurance can vary significantly based on individual circumstances, including driving history, vehicle type, location and the level of coverage chosen. According to Bankrate's 2024 research, the national average cost of car insurance in the U.S. is approximately $2,545 per year for full coverage, while minimum coverage averages around $741 annually.
Since Direct Auto specializes in policies for high-risk drivers and offers a range of coverage options, rates might differ from these averages. To understand how much a Direct Auto policy could cost you, it's advisable to request a personalized quote. This will provide a more accurate estimate tailored to your specific rating factors and coverage needs.
Direct Auto car insurance discounts
Direct Auto offers a long list of discounts that could save money on your car insurance. Some of these savings opportunities include:
- Military discount: Active duty military members could save up to 25 percent with proper documentation.
- Senior citizen discount: Completing a defensive driving course can earn those 25 and older up to a 5 percent discount.
- DynamicDrive discount: Enrolling in Direct Auto's telematics program might lead to an initial saving of up to 10 percent, with the potential for more savings based on safe driving.
- Prior coverage discount: A discount of up to 25 percent 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 percent discount.
- Payment discount: Opting for automatic payments, going paperless, or paying your policy in full might save you up to 9 percent.
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Direct Auto life insurance review
Direct Auto Insurance life insurance is not as robust as some of its competitors, but it could be a good choice for shoppers looking for a term life policy with no medical exam. Direct Auto’s term life coverage ranges from $10,000 to $25,000, and once approved, the company provides a two-year renewal guarantee with no change in rate.
People who need a whole life policy will need to look elsewhere, as Direct Auto only offers term life. However, the company boasts cheap rates and an easy application process with little wait time between application and approval.
Pros and cons of Direct Auto life insurance
There’s a lot to consider when choosing a life insurance policy. This list of pros and cons may help you make an educated decision:
Pros
- No medical exam
- May earn a discount that could save up to five percent on your Direct Auto policy when term life is purchased
- Inexpensive premiums are advertised
Cons
- No online quotes
- Only term life is available
- No riders
Direct Auto life insurance riders
Direct Auto only offers one type of life insurance product, which is term. It also does not list any rider options.
Compare life insurance providers quickly and easily
See which provider is right for you.
Whole life insurance combines life insurance with an investment component.
- Coverage for life
- Tax-deferred savings benefit if premiums are paid
- 3 variations of permanent insurance: whole life, universal life and variable life include investment component
Term life insurance is precisely what the name implies: an insurance policy that is good for a specific term of time.
- Fixed premium over term
- No savings benefits
- Outliving policy or policy cancellation results in no money back
Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Compare Direct Auto with other insurers
If after studying this Direct Auto Insurance insurance review, you’re still not sure if this company is right for you, you may want to consider these alternatives.
Direct Auto Insurance vs. Bristol West
Bristol West is a member of the Farmers Insurance Group and could be ideal for high-risk drivers, as it also specializes in non-standard car insurance. The company also offers an online portal and mobile app accessibility. However, unlike Direct Auto, it does not offer life insurance.
Learn more: Bristol West Insurance review
Direct Auto Insurance vs. Encompass
Backed by Allstate, Encompass sells auto insurance through local independent agents and provides a wide range of coverage options and discounts to help build the right policy for your needs. This company does not sell life insurance, but it does offer homeowners insurance, whereas Direct Auto does not.
Learn more: Encompass Insurance review
Direct Auto Insurance vs. Geico
Tech-savvy drivers who prefer to manage their policy via mobile app or online customer portal may consider Geico, as its digital tools are highly rated. Geico also offers a long list of car insurance discounts to help make premiums affordable. It also sells term, whole and universal life insurance through partnerships with other companies.
Learn more: Geico insurance review
Our insurance editorial team includes licensed agents with decades of combined experience, and we used our intimate knowledge of the industry to conduct this in-depth Direct Auto insurance review.
46
years of industry expertise
122
carriers reviewed
34.5K
ZIP codes examined
1.2M
quotes analyzed
Is Direct Auto Insurance a good insurance company?
Since it offers non-standard auto insurance, drivers with less-than-ideal driving records or credit history may find it worth their time to request a quote with Direct Auto. Direct Auto Insurance life insurance could also be an excellent choice for shoppers who want quick approval for a low-cost basic term life policy with no medical exam. However, Direct Auto’s customer service might be lacking when measured by complaints lodged with the NAIC. If you prioritize customer service, then you may want to do further research before finalizing your policy.
What are real-life customers saying about Direct Auto Insurance?
To gain a comprehensive perspective on Direct Auto's customer experience, we explored feedback from real users. Insights were drawn from Reddit, a broad forum where people discuss their experiences with various services and Trustpilot, which specializes in detailed customer reviews. These platforms provide a nuanced view of Direct Auto, highlighting aspects like customer service and claims handling, offering a glimpse into what policyholders might typically expect.
Reddit users have shared mixed experiences with Direct Auto. One user faced billing issues after their policy was canceled for not verifying a new address, while an employee pointed out that customer experiences vary greatly depending on individual factors such as ZIP code, driving record and age.
Trustpilot
Trustpilot reviews for this car insurance company present mixed experiences. One detailed account criticizes the claims process and customer service, highlighting a lack of communication and delays in compensation. In contrast, another review praises the respectful and courteous treatment received in person, along with competitive rates.
Direct Auto Insurance company details
For those interested in Direct Auto Insurance or current policyholders seeking assistance, here are the essential contact details:
- Customer service: (877) 463-4732 and press 1
- Claims: (800) 403-1077
- Sales: (877) 463-4732 and press 2
- Website available at: Direct Auto Insurance
- Email: Email Us | Direct Auto & Life
State availability
Direct Auto Insurance offers auto insurance policies in 16 states. You can apply for a policy in AL, AR, DE, FL, GA, LA, MI, MS, NC, OH, PA, SC, TN, TX, VA and WA.
Direct Auto tools and benefits
In addition to personal auto and term life insurance, Direct Auto offers a few more perks and policy types that could meet your needs:
- Mobile app: Although it isn’t highly rated, Direct Auto offers a mobile app that policyholders can use to make payments and manage their policies. Not all smaller carriers include this feature.
- Motorcycle insurance: A personal auto insurance policy will not cover a motorcycle, as this is considered a different type of vehicle. If you own a motorcycle, you will need to purchase a separate motorcycle insurance policy.
- Commercial auto insurance: When you use a vehicle for business, it will often need specialized coverage. Direct Auto offers commercial auto insurance for individual cars and fleets, including up to 20 vehicles.
- Renters insurance: Renters may not need to insure the structure of the home they live in, but a renters insurance policy could provide coverage for their belongings and liability.
- Accident medical expense insurance: Direct Auto’s accident medical expense insurance can help with out-of-pocket expenses that your health insurance may leave after an accident or injury. Unlike medical expense coverage on an auto policy, this coverage can apply to many accidents, even those that don’t involve a vehicle.
- Mexico car insurance: Direct Auto offers international coverage through its affiliate MXGA Inc. Many standard auto policies don’t provide coverage outside the United States or its territories. Tourists traveling to Mexico may find peace of mind by purchasing a Mexico auto policy through Direct Auto that keeps them protected when they travel across the border.
- Emergency protection plan: This optional add-on can help cover accident-related expenses such as ambulance reimbursement, cash for hospital stays and reimbursement for out-of-pocket costs such as deductibles.
Frequently asked questions about Direct Auto
