Direct Auto is an attractive auto insurance option for high-risk drivers, but its above-average premiums could turn some drivers away.
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Updated February 6, 2024 Compare.com Rating ?Pros
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Bottom Line
Direct Auto is a great option if you’ve struggled to find insurance coverage elsewhere because of your driving record, but it’s important to get multiple quotes to make sure it offers the best rate.
| Founded | 1991 |
| Available in | 16 states |
| Owned by | National General Insurance Group |
| National average premium | $148 per month |
| Mobile app | Android, iOS |
| Customer service | 1 (877) 463-4732 |
| Claims | 1 (800) 403-1077 |
| Primary competitors | Kemper, National General, SafeAuto, The General |
Direct Auto Insurance, founded in 1991, is part of the Direct General Group. As a non-standard auto insurance company, its goal is to provide excellent service and affordable coverage to drivers, regardless of driving history.
Though it offers a wide variety of coverages to many types of customers, Direct Auto markets itself to high-risk drivers and people who require SR-22 certificates, since these drivers often struggle to find car insurance elsewhere.
In addition to offering insurance to high-risk drivers, Direct Auto offers its customers plenty of ways to save through discounts. But its average rates are higher than the industry average.
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| Category | Score |
|---|---|
| Cost | 4.7/5 |
| Customer satisfaction | 1/5 |
| Ease of use | 4.6/5 |
| Availability | 3/5 |
| Industry reputation | 4.5/5 |
| Overall Score* | 3.76/5 |
| *Company ratings for each category are determined using our proprietary, objective rating formula. You can find more information on our unique scoring methodology at the bottom of this article. | |
The right car insurance company for you depends on your unique circumstances. Direct Auto can be a good choice for many customers, thanks to its wide variety of discounts and high-risk coverage. But it also falls short in a few areas, potentially turning some customers away.
Let’s look at where the company stands out and falls short.
Direct Auto’s standout offering is high-risk auto insurance, including SR-22 certificates for drivers who require them. It also offers more discounts than many of its top competitors.
Unfortunately, Direct Auto has high premiums compared to many of the top companies. Additionally, while it offers all standard coverage options, it’s missing many popular optional coverages, like gap insurance.
Unfortunately, it’s difficult to get a good read on how Direct Auto’s customers feel about their service. First, the company only has a few reviews on Trustpilot, making it impossible to get a read on its overall level of service.
Additionally, while Direct Auto earns an A+ rating from the Better Business Bureau (BBB), the company scores just 1.07 out of 5 from users. Direct Auto’s (few) reviews are combined with reviews about its parent company, National General.
Finally, Direct Auto isn’t included in rankings by major third-party agencies such as J.D. Power or the National Association of Insurance Commissioners (NAIC). As a result, we can’t clearly see how it stacks up to the competition.
Unfortunately, we only have a few reviews to base our feedback on, which are primarily (though not entirely) negative. You can read a few from Trustpilot below:
Direct Auto has an average insurance premium of $148 per month. The table below breaks down its average rates for liability-only and full-coverage insurance.
| Liability Only | Full Coverage |
|---|---|
| $109 | $186 |
Direct Auto’s average premiums are higher than the national averages of $77 per month for liability-only and $173 per month for full coverage. That said, several factors affect your insurance premiums, such as your age and where you live. So it’s best to shop around and get quotes from several companies.
In the following sections, you’ll learn how Direct Auto’s rates stack up in various situations.
Direct Auto is a smaller insurance company that operates in fewer than 20 states. Plus, insurance premiums vary widely across different insurance companies. Rather than comparing it to top national insurers, it’s more helpful to compare it to other similarly sized non-standard auto insurers.
We’ve broken down the average liability-only and full-coverage rates for Direct Auto and some of its top competitors in the table below.
| Company | Liability Only | Full Coverage |
|---|---|---|
| Direct Auto | $109 | $186 |
| Kemper | $103 | $207 |
| National General | $66 | $148 |
| SafeAuto | $85 | $187 |
| The General | $130 | $244 |
Direct Auto has higher liability insurance rates than most competitors. Its rate is $43 more per month than National General, for example. But its full-coverage rates are more competitive — almost $60 cheaper per month than The General.
That said, each of these companies uses a unique formula for calculating insurance premiums. The only way to determine the cheapest company for you is to get a quote from each.
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Your age is a key factor that insurance companies use to determine your auto insurance premiums. Insurance premiums tend to be highest when drivers are in their teens but decrease with age.
Let’s look at how Direct Auto rates change based on your age.
| Age | Liability Only | Full Coverage |
|---|---|---|
| Teens (18 years old) | $272 | $488 |
| Young adults (25 years old) | $132 | $237 |
| Adults (40 years old) | $111 | $192 |
| Seniors (65 years old) | $101 | $173 |
Teens pay the highest insurance premiums of any demographic. In fact, rates for this age bracket can be $100 or more per month higher than those for older drivers. Teen drivers are more likely to be involved in fatal car accidents and engage in high-risk driving habits, which accounts for these high premiums, according to the Centers for Disease Control and Prevention (CDC).
Once you reach your 60s, premiums decrease. But rates may increase again once you reach your 70s, as physical and cognitive impairments can make accidents more likely.
Let’s take a closer look at these two age groups.
Teen drivers pay an average of $380 per month with Direct Auto. But the average premium drops to just $185 per month — a decrease of 51% — by the time you reach age 25.
Discount Auto offers ways for young drivers to save on their premiums, including its good student discount and driver education discount, which can save you up to 10%.
We’ll explore rates for middle-aged and senior drivers in the next section.
Thanks to having more experience and safer driving habits once you reach middle age, Direct Auto’s rates decrease even more. Drivers around age 40 pay an average monthly rate of $151. But senior drivers generally pay the cheapest insurance premiums of any other age bracket. The average premium for drivers age 65 and older is just $137 per month with Direct Auto.
Direct Auto also offers a discount specifically designed for its senior customers. Drivers age 55 and older who complete a motor vehicle accident prevention course can save up to 5% per month.
It’s probably no surprise that your driving record has a greater effect on your insurance premiums than most other factors. Generally speaking, the better your driving history, the cheaper your insurance premiums.
We’ve broken down the average rates Direct Auto charges for different driving records in the table below.
| Driving History | Liability Only | Full Coverage |
|---|---|---|
| Clean record | $109 | $186 |
| Speeding ticket | $141 | $254 |
| At-fault accident | $160 | $282 |
| DUI | $126 | $245 |
Unsurprisingly, drivers with clean records pay the lowest insurance premiums. Any violation — a speeding ticket, an at-fault accident, or driving under the influence (DUI) — can increase your premiums significantly.
Let’s take a closer look at how each infraction affects Direct Auto’s average rates.
Direct Auto’s insurance premiums increase by an average of roughly 29% after a speeding ticket. That’s lower than the national average increase of 37%, according to Compare.com data.
The amount your premiums increase can depend on several key factors, including how much faster than the speed limit you were driving.
If you have a speeding ticket that’s increased your rates, you can save by taking advantage of Direct Auto’s DynamicDrive program, which allows you to save based on your safe driving habits.
Direct Auto drivers pay an average of $221 monthly after an at-fault accident, a 40% increase from those with clean driving records. Meanwhile, the national average rate increase after an accident is 44%, according to our analysis.
It’s important to note that these rates specifically apply to drivers with at-fault accidents. Your rates may also increase after an accident where you weren’t responsible, but the increase will likely be smaller.
After an accident, you can still lower your rates using Direct Auto’s discounts, including its DynamicDrive program. Additionally, taking an accident prevention course may help you save on your premiums.
Driving under the influence — or DUI, for short — is among the most serious driving violations you can get and generally results in a significant increase in your auto insurance premiums.
On average, insurance premiums increase by roughly 94% after a DUI, according to Compare.com data. But Direct Auto’s rates increase by an average of just 23% — less than the increase for an at-fault accident.
If you’ve gotten a DUI and want more affordable premiums, consider taking advantage of one of Direct Auto’s discount programs. Both the DynamicDrive program and an accident prevention course show the company you’re willing to improve your driving habits, and both can save you money on your premiums.
Your credit history can affect your insurance premiums because insurers believe it indicates your personal risk level. Generally speaking, the better your credit score, the lower your insurance premiums. On the other hand, the worse your credit score, the higher your premiums.
Here’s how much Direct Auto rates change depending on your credit score, according to Compare.com data.
| Credit Score | Liability Only | Full Coverage |
|---|---|---|
| Excellent | $105 | $184 |
| Good | $107 | $192 |
| Average | $111 | $192 |
| Poor | $111 | $206 |
The table above shows that credit score is a relatively minor factor when it comes to your auto insurance premiums with Direct Auto. The premium difference between drivers with excellent and poor credit is less than 15% with Direct Auto. With other companies, the average increase between excellent and poor credit scores is nearly 165%, according to our data. That makes Direct Auto a fantastic choice for drivers with less-than-ideal credit histories.
Direct Auto offers an impressive lineup of car insurance discounts that allow you to save up to 25% on your premiums. Here are the discounts available:
Direct Auto offers eight different insurance coverages to add to your policy. Some come standard with any insurance policy, while others are optional coverages that you can add.
Here are the coverages available:
Direct Auto makes it easy to sign up for a policy online, and it only takes about five minutes. Here’s a step-by-step guide to purchasing a Direct Auto policy:
The entire process, from quote to purchase, only takes about five minutes. It’ll take longer if you buy your policy through a local agent. And, thanks to the online quote tool, it’s quick and easy to compare premiums when you’re shopping around but aren’t yet ready to purchase.
You can contact Direct Auto’s customer service by phone or email. If you call the company’s customer service number, you’ll have to review several menu options before speaking to a representative.
I contacted Direct Auto’s customer service line mid-afternoon. Though it took several minutes to get through the various menu options, there was no wait time to speak to a representative.
Unfortunately, there aren’t many online reviews from current and former customers to get an idea of the company’s overall customer service trends, and major third-party organizations have yet to rate the company’s customer service.
The few reviews I came across about the insurer are generally negative. But the negative reviews aren’t necessarily about customer service — many are related to the company’s high rates.
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Direct Auto has several ways that you can use to file claims. First, you can file a claim online on the Direct Auto website or mobile app. If you’d prefer to file a claim with an agent, you can call the company’s claims number at 1(800) 403-1077.
If you file your Direct Auto claim over the phone, you’ll have to go through a couple of menu options before connecting with a representative. Once you indicate the type of claim you need to file, you’ll connect with a representative quickly.
Many online reviews don’t indicate what the claims process is like, but I found a couple recent examples. Remember that the claims process differs depending on whether you’re a Direct Auto customer or were in an accident caused by someone who is.
Here are some reviews of the company’s claims process:
In addition to basic auto insurance, Direct Auto also offers several other types of policies. Here are the other coverages you can get with Direct Auto:
Direct Auto might be right for you if you’re a high-risk driver or need an SR-22 certificate. Not only does Direct Auto specialize in insuring this type of customer, but it also doesn’t increase its rates for certain risk factors as much as other insurers.
Additionally, thanks to Direct Auto’s many discounts, plenty of ways exist to lower your premiums.
But despite its benefits, Direct Auto isn’t right for everyone. The company has higher-than-average premiums, which means you can probably get cheaper coverage elsewhere if you’re a relatively low-risk driver. Additionally, Direct Auto is missing some popular coverages, like gap insurance. It’s important to consider your coverage needs before purchasing a policy.
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Are you considering an insurance policy with Direct Auto? Here are the answers to some frequently asked questions about this insurer.
It depends. Since personal insurance rates vary based on a lot of different factors, it’s impossible to tell if Direct Auto is the cheapest insurer for you. That said, Direct Auto doesn’t have the cheapest car insurance when looking at average rates. The company’s average car insurance premiums are higher than the industry average.
Direct Auto was founded in 1991 and has been in business for more than three decades.
SafeAuto is a part of Direct Auto since the company purchased SafeAuto in 2023. Direct Auto continues to serve SafeAuto’s existing policies.
If you need a new policy, you’ll have to purchase one through Direct Auto.
Direct General Insurance — the former parent company of Direct Auto — was purchased by National General Insurance Company in 2016.
Methodology
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information. All the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.
Sources
Erin Gobler is a personal finance writer and journalist based in Madison, Wisconsin. With more than five years of experience, Erin has covered topics such as investing, credit cards, mortgages, insurance, and more. Her work has been featured in major publications like Business Insider, Fox Business, and Time. Erin received her bachelor’s degree from the University of Wisconsin-Oshkosh in 2013, studying journalism and political science. She also received a certificate of financial planning from Boston University in 2022.
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