Finding affordable car insurance can feel like an uphill battle, especially if your driving record isn't perfect. If you've been turned away by mainstream insurers, you might feel like you're out of options. This is where Direct Auto Insurance steps in. Since 1991, their mission has been to provide coverage for drivers who might otherwise struggle to get it, truly aiming to help you "Drive with Peace of Mind."
But are they the right fit for you? Direct Auto specializes in insuring high-risk drivers, which often means their premiums can be higher than the national average. However, for those with a less-than-stellar record, they can be a lifeline. Even drivers with clean records might find competitive rates thanks to a surprisingly long list of discounts and flexible coverage options.
This comprehensive review will break down everything you need to know about Direct Auto, from costs and coverage to customer service and our own experience getting a quote. Let's dive in and see if Direct is the partner you need on the road.
Direct Auto at a Glance: Pros and Cons
Every insurance company has its strengths and weaknesses. Here’s a quick look at where Direct Auto shines and where it falls short.
What We Like
- Accepts High-Risk Drivers: They specialize in providing SR-22 forms and insuring drivers with past accidents, tickets, or DUIs.
- Flexible Payment Options: Direct Auto offers customizable payment schedules and even accepts cash payments at its physical locations.
- Generous Discounts: A wide variety of discounts are available, including some that are larger than what competitors offer.
What to Consider
- Limited Availability: Service is only offered in 15 states, so many drivers won't have access.
- Higher Premiums for Preferred Drivers: If you have a clean record and good credit, you'll likely find cheaper rates elsewhere.
Who Should Consider Direct Auto Insurance?
Direct Auto has carved out a specific niche in the insurance market. Understanding who they cater to is key to knowing if they're a good match for your needs.
Direct Auto is an Excellent Choice For:
- Drivers labeled as high-risk who have been denied coverage by other major carriers.
- Individuals who need an SR-22 or FR-44 filing to reinstate their license.
- Customers who prefer paying their bills in cash at a local office.
Direct Auto May Not Be the Best Fit For:
- Drivers with a spotless record and excellent credit who can qualify for lower rates from standard insurers.
- Anyone living outside their 15-state service area: Alabama, Arkansas, Delaware, Florida, Georgia, Louisiana, Michigan, Mississippi, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, and Washington.
How Much Does Direct Auto Car Insurance Cost?
When it comes to cost, Direct Auto is a bit of a mixed bag. For full coverage, their average rate of \$2,452 annually (about \$204 monthly) is very close to the national average. However, their minimum coverage average of \$988 annually (\$82 monthly) is noticeably higher. This is likely because their customer base includes more high-risk drivers, which naturally pushes the average premium up.
Remember, these are just averages. Your actual rate will depend on your driving history, location, vehicle, and more. The only way to know for sure is to get a personalized quote.
Here’s how Direct Auto’s average annual premiums compare to other major insurance companies:
| Company | Average Annual Premium (Full Coverage) | Average Annual Premium (Minimum Coverage) |
|---|---|---|
| National Average | \$2,399 | \$365 |
| AAA | \$251 | \$1,056 |
| Allstate | \$2,605 | \$840 |
| American Family | \$1,936 | \$604 |
| Dairyland | \$4,415 | \$2,007 |
| Direct Auto | \$2,452 | \$988 |
| Farmers | \$2,979 | \$1,002 |
| GEICO | \$1,731 | \$517 |
| Nationwide | \$1,808 | \$718 |
| Progressive | \$1,960 | \$638 |
| State Farm | \$2,167 | \$674 |
How to Save Money with Direct Auto Discounts
While their base rates can be high, Direct Auto offers a wealth of discounts that can significantly lower your premium. You can get instant savings just for making simple choices: save up to 10% by paying for your policy in full, 5% for setting up autopay, and 1% just for going paperless.
Other notable discounts include:
- Military Discount: A generous 25% discount for active service members in Alabama, Florida, and Louisiana.
- Multi-Car Discount: Save up to 25% for insuring more than one vehicle, which is higher than many competitors.
- Prior Insurance Discount: Earn up to 25% off just for having continuous coverage with another provider for the last six months.
- Good Student Discount: For unmarried, full-time students who maintain good grades.
- Homeowner Discount: A rate reduction for customers who own their home.
- Safe Driver: For maintaining a clean driving record for three years.
- Policy Renewal: A discount for renewing your policy before it expires.
- Vehicle Safety Features: Savings for having anti-lock brakes or other safety equipment.
The Prior Insurance and Multi-Car discounts are particularly valuable. Proving you've been consistently insured shows you're a responsible customer, and Direct Auto rewards that with a substantial price cut. Likewise, their 25% multi-car discount can make them a surprisingly affordable option for families or couples with more than one vehicle.
My Experience Getting a Quote
To see how the process works, I went to Direct Auto’s website for a quote. Even though my driving record is clean, my current premium has been creeping up, so I was curious to compare.
The online quote tool was straightforward. I entered my personal details, vehicle information, and the number of drivers. Within minutes, I received an initial quote for state-minimum coverage, with estimates for adding comprehensive and collision.
However, when I tried to customize my coverage limits, the site prompted me to call an agent. It also didn't automatically apply discounts beyond the basic good driver rate. The online tool seems best for getting a quick estimate on minimum coverage. For a detailed, accurate quote with all your eligible discounts, you'll need to speak with an agent.
After a quick call, I learned that Direct Auto doesn't serve my specific area. But even the initial online quote suggested my premium would be higher than what I currently pay. As a low-risk driver, I have more competitive options. For someone in a high-risk category, however, the rate I was quoted could be a welcome relief.
What Types of Coverage Does Direct Auto Offer?
Direct Auto provides all the standard coverage you'd expect, plus some valuable add-ons to customize your policy.
Standard Coverages
- Liability Coverage (Bodily Injury & Property Damage): Covers costs for injuries and damages you cause to others in an at-fault accident.
- Collision Coverage: Pays to repair or replace your car after an accident, regardless of fault.
- Comprehensive Coverage: Covers damage from non-collision events like theft, vandalism, fire, or hitting an animal.
- Uninsured/Underinsured Motorist: Protects you if you're hit by a driver with little or no insurance.
- Medical Payments (MedPay): Covers medical expenses for you and your passengers after an accident, regardless of fault.
Optional Add-On Coverages
For a few extra dollars a month, you can add protections that provide significant value:
- Emergency Roadside Assistance: 24/7 help with towing, jump-starts, lockouts, and fuel delivery for as little as \$3 per month.
- Rental Reimbursement: Covers the cost of a rental car while yours is in the shop after a covered claim.
- Towing & Labor: Covers towing costs and associated labor if your car is disabled.
- Accidental Death Coverage: Provides a \$5,000 benefit to your beneficiaries.
- Mexico Car Insurance: Short-term coverage for when you drive south of the border.
Direct Auto Customer Service and Satisfaction
As a smaller, specialized insurer, Direct Auto isn't rated by J.D. Power. However, we can still get a good picture of their performance from other sources.
- Financial Strength: AM Best gives Direct Auto an "A (Excellent)" rating, meaning they have a strong ability to pay out claims.
- BBB Rating: The company has an A+ rating from the Better Business Bureau. However, customer reviews on the BBB site are low (1.05 out of 5 stars), which is common for insurance companies as complaints often dominate reviews. Most complaints cite claim delays.
- NAIC Complaint Index: The National Association of Insurance Commissioners (NAIC) reports Direct Auto has a complaint ratio of 0.51 for private auto insurance. This is excellent, as it means they receive about half as many complaints as expected for a company their size.
- CRASH Network: In a 2025 survey of collision repair shops, Direct Auto received a D+ grade for its claims handling practices. It's worth noting that other major insurers like Allstate also scored in this range.
Filing a Claim and Using the App
Filing a Claim
You can file a claim with Direct Auto online, through their mobile app, or by calling a claims specialist at 1-800-403-1077 (Monday-Friday, 8 a.m. to 5 p.m. local time). Be sure to have your policy number, the date of the incident, and information about the other party involved.
Website and Mobile App
The Direct Auto website and "MyAccount" portal are user-friendly, allowing you to view ID cards, manage payments, and file claims. The mobile app offers the same features, but user reviews are mixed. The iOS app has a 2.1-star rating, while the Android app has a 3.2-star rating. Many users on both platforms report login issues, glitches, and problems processing payments.
Frequently Asked Questions
Who owns Direct Auto?
Direct Auto is owned by National General, which is, in turn, owned by Allstate.
How long has Direct Auto been in business?
Direct Auto was founded in 1991 in Nashville, Tennessee, and has been operating for over 30 years.
Is Direct Auto available in California?
No, Direct Auto does not offer car insurance in California. Drivers in California should look for quotes from companies like GEICO, Mercury, or Wawanesa.
Our Review Methodology
We evaluate insurance companies based on several key factors to provide a comprehensive and unbiased review. Our analysis focuses on price and discounts, claims handling efficiency, overall customer experience, and the variety of coverage options offered. We gather data from official sources like the NAIC and AM Best, analyze customer reviews, and go through the quote process ourselves to assess the real-world experience for consumers.
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