There are some well-known brands of auto insurance industries that spend a lot of money on advertising. And there are many smaller, lesser-known organizations that serve customers well too. Direct Auto Insurance is one of these companies and this article looks into what exactly they have to offer.
Direct Auto Insuranceis a smaller insurance provider that has been in business for 99 years. The company offers several different plans, though its availability is limited to 11 states.
It has a superior financial strength rating, offers various discounts, and is recommended for high-risk drivers.
What is Auto Insurance?
Auto insurance is made up of several parts that help pay for damages to cars and people as the result of an accident or vehicle damage.
Drivers pay periodic payments (called insurance premiums) to an insurance company so that in a case of an accident, the insurance company pays all or most of the costs to repair the damage.
The cost of insurance varies widely and is based on many factors, including driving history, age, gender, and more. Car insurance works on the principle of fault.
If a driver is at the fault for causing an accident, he’s responsible for paying the damages resulting from his driving. If he has insurance, his insurance should step in and pay for the damages.
Pros and Cons of Direct Auto Insurance
Direct Auto offers discounts to safe drivers, members of the military, and more, with additional savings for bundling coverage.
Flexible payments. You decide when and how much you’ll pay each month based on your budget. And you can pay online, by text, by mail, or at one of 400 Direct Auto offices.
Customized services. A Direct Auto agent guides you through questions to determine how much coverage is right for your needs.
DirectDriveapp. Use your smartphone to monitor your driving behavior, log car trips or access ID cards.
Limited coverage. Direct Auto Insurance services are only in 11 states at this time. If you live outside its territory, you’ll have to look elsewhere for coverage.
Claims by phone only. At this time, Direct Auto doesn’t offer the ability to file a claim online or through its app.
Direct Auto Insurance Quotes And Claims Process
Getting a quote is simple. All you have to do is call Direct Auto or visit the company’s website, then provide some information about any drivers and vehicles you’d like to have on your policy.
You can also speed up the process if you know what type of insurance you are looking for.
As for claims, no one looks forward to getting into a car accident, but sometimes there is nothing that can be done to prevent it.
When these incidents occur, you want a seamless and easy claims process to relieve some of the burdens. Arguing with an insurance company is only going to make matters worse.
Thankfully, it’s easy to file a claim for Direct Auto car insurance. If you’ve been in an accident, follow these quick steps:
Call 877-GO-DIRECT and speak with a customer service representative. Make sure you report your claim as soon as you can during the company’s normal business hours.
Direct Auto will begin the investigation by assigning you a claims adjuster. That adjuster will contact you within one business day. You are able to talk to the team through the entire investigation to understand the damage and have your questions answered. The company even offers virtual photo inspections through MyClaimPics.
Choose to have the repairs performed in one of the provider’s approved facilities. If you pick this route, the repairs are guaranteed for as long as you are the owner of your vehicle. You can also choose your own shop, but the repairs won’t be guaranteed.
If the policy includes a rental car, your claims adjuster takes care of getting you set up, as well.
What Types of Auto Insurance Coverage Does Direct Auto Insurance Offer?
Although we often talk about auto insurance in the singular, it really includes several types of coverage. Direct Auto Insurance offers the following types of auto insurance coverage:
Bodily Injury Coverage: This insurance pays for your legal defense and for the costs associated with injuries to other people involved in an accident.
Property Damage Coverage: Usually, this insurance will look after the property damage you cause to another vehicle or property when at fault in an accident.
Uninsured Motorist Coverage: The uninsured motorist rider covers the damages caused by a negligent driver who doesn’t have an insurance policy.
Underinsured Motorist Coverage: This covers the damages caused by a driver who is at fault but whose liability limits don’t cover all the property damages and medical expenses of the accident.
Collision Coverage: Collision coverage is an optional policy that pays for the cost of repairing or replacing your vehicle after an accident. If you have an auto lease, the lender may require you to buy collision insurance.
Comprehensive Coverage: If your vehicle is damaged in an event other than a collision, comprehensive coverage will pay for the cost of the repair. Covered events include storms, floods, fire, vandalism, and theft.
Medical Payments Coverage: Medical payments insurance covers the medical costs caused by an accident regardless of who is at fault. Most policies will also cover funeral expenses.
Personal Injury Protection: Personal injury protection, also known as PIP, typically covers medical expenses, loss of essential services, funeral services, and loss of income. It is similar to medical payments coverage, or MedPayfor short. The difference is that MedPay will only cover reasonable medical expenses.
Direct Auto Insurance customers can also add the following riders or endorsements to their policies:
Travel Expenses / Trip Interruption Coverage: This coverage helps pay for non-refundable expenses if your trip is delayed or canceled due to an accident, mechanical breakdown, theft, injury, an unexpected illness, or some other covered event.
Rental Car Coverage: Rental car coverage, also known as rental car reimbursement, pays for the cost of a car rental if you can’t drive your vehicle because of a covered loss, such as a car accident, theft, or vandalism.
Non-Owner Liability Coverage: This policy is designed for people who drive a vehicle they don’t own. It is also used by businesses that want to provide coverage for their employees when they use their personal vehicles for work. In some cases, this endorsement will also cover rental vehicles.
Loan / Lease / GAP Coverage: GAP coverage covers the difference between what you owe on your vehicle and its current cash value in the event of a total loss.
Emergency Roadside Service: Coverage varies by carrier but it typically includes jump starts for dead batteries, labor to change a flat tire, towing, and lockout services.
What Benefits does Direct Auto Insurance Offer?
Direct Auto Insurance offers the following benefits to its customers:
Local Agents: Perfect for people who prefer the personal touch of a local insurance agent.
Mechanical / Auto Body Repair Network: Enjoy the competitive prices and peace of mind of having access to a network of service and repair shops.
Direct Auto Insurance Reputation
Any insurance company can look good from an outside perspective. But it’s the real customers that show how the program actually operates. That’s why it’s valuable to look at providers through a magnifying glass.
Direct Auto car insurance has an “Excellent” financial strength rating, according to AM Best. While this might seem irrelevant, it’s valuable information to have. This rating indicates if the insurer has the money to pay out claims.
Direct Auto rates an A+ from the Better Business Bureau (BBB). The insurance industry doesn’t always fare well with consumers, so this is pretty exceptional.
The organization also has a 3.5-star rating from customers on BBB and has been accredited since 1994.
Sure, there are complaints about the coverage, mainly related to slower than normal response times. This type of criticism is something many car insurance companies deal with, so it’s not alarming to us.
Average costs aren’t available, but we do know that Direct Auto provides all of the main coverage options you would look for with automobile insurance. You can also add on towing and roadside assistance.
Part of what makes this coverage different than others is that it offers plans for those that are considered high-risk. Even if you haven’t been able to get coverage with other companies, you can likely receive protection from Direct Auto.
The flexible payment options also help this company to stand out. You can decide what day of the month to pay your insurance bill. You can also pay in person, by phone, or with text-to-pay.
If you want to save money, you will be interested in the various discounts the company offers:
Good Student Discount
If you are on the Dean’s List or have a B average in your coursework (high school or college), you can receive 10 percent off the premium.
Safe Driver Discount
Receive a 10-percent discount if you haven’t been in an accident for 36 months and have no moving violations.
Senior Citizen Discount
Policyholders 55 or older receive a 5 percent discount. Some variations exist depending on the state of coverage.
If you insure more than one vehicle, you can receive up to 25 percent off.
Policy Renewal Discount
If you have no lapse in coverage, you receive up to 20 percent off your renewing policy, as long as it is put in place within seven to ten days of the expiration date.
Welcome Back Discount
If you are a returning customer, you can get a 6 percent discount as long as you haven’t been with the company for at least six months.
Frequently Asked Questions
1. Where is Direct Auto Insurance available?
Direct Auto car insurance is primarily based in the southeastern United States. You can obtain coverage in 11 states, including Alabama, Arkansas, Florida, Georgia, Mississippi, North Carolina, Ohio, South Carolina, Tennessee, Texas, and Virginia.
2. Does Direct Auto Insurance have an app?
While most auto insurance providers have an app, Direct Auto doesn’t. The company claims it is working on producing something for policyholders, but for now, you have to either call or use the website.
3. How do I cancel Direct Auto insurance?
Some changes cannot be made on your own through the website. Canceling a policy is one of the times that you will need to call the customer service line and speak with a representative.
4. Will I need a new policy for each driver?
No. You may simply add them to your existing policy.
5. Does Direct offer roadside assistance?
Yes. As a coverage add-on, Direct provides 24/7 roadside assistance for “a few dollars a month.” This includes emergency towing, lockout service, gasoline and fluid delivery, and jump-starts for dead car batteries.
Direct Auto Insurance prides itself on serving high-risk drivers, but it may not be worth it for drivers who can afford to get better service elsewhere.
The company has a spotty reputation when it comes to customer service, financial strength ratings, and fair business practices, so we recommend steering clear if you can afford a provider that can offer better service.
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