If you’ve gone this long without hearing of Direct Auto & Life Insurance, that’s probably a good thing. Part of the Direct General Insurance Group (not to be confused with The General), the company caters primarily to high-risk drivers who can’t get affordable car insurance elsewhere. Direct Auto & Life Insurance also offers motorcycle coverage, term life insurance, commercial car insurance and auto insurance for driving in Mexico.
While Direct Auto isn’t the best fit for drivers with a clean record, it may suit your needs if you’ve been denied coverage due to at-fault crashes, poor credit or other issues, or you simply want to satisfy your state’s minimum liability insurance requirements.
Where Direct Auto shines
- It offers car insurance to drivers with a spotty record or poor credit.
- Direct Auto provides SR-22 insurance forms.
- You can choose which day of the month to pay your bill.
Where Direct Auto falls short
- The company rates poorly among customers for its claim handling and settlements.
- It does not have strong financial strength, according to A.M. Best.
- Insurance sales are limited to 13 states.
At a glance
- A.M. Best financial strength rating: B (fair).
- Consumer complaints: More than the median for a company of its size.
- Size: Direct General is the No. 45 largest auto insurer based on direct premiums written, according to A.M. Best.
In this guide
» COMPARE: Auto insurance quotes
Direct’s auto insurance
Direct Auto offers car insurance in 13 states throughout the South and lower Midwest, with similar coverage choices as most major companies. This includes options such as:
- Liability.
- Collision.
- Comprehensive.
- Uninsured motorist protection.
- Medical payments.
- Rental car reimbursement.
- Roadside assistance.
You can also choose from several emergency services coverages that are administered by a partner company. Choices include a benefit that pays cash for each day you’re in a hospital due to a crash and an ambulance reimbursement of up to $100.
Direct Auto also provides SR-22 insurance forms, documents that prove you have the legally required amount of car insurance. Your state might require an SR-22 if you were recently convicted of a DUI or had your license suspended, among other reasons.
» MORE: Best car insurance companies for high-risk drivers
Buying and paying for your policy
You can get quotes from Direct Auto online or by phone. The company also has over 400 brick-and-mortar “stores.”
One of Direct Auto’s biggest selling points is payment flexibility. You can pick the day of the month that works best to pay your bill and select how much of your total cost you’d like to pay up front.
Direct auto insurance discounts
Direct Auto has a decent set of car insurance discounts to help lower rates, such as:
- Discounts for your driving: Going accident- and violation-free for at least three years, or driving a low number of miles.
- Discounts for personal factors: Owning a home, attending high school or college and maintaining a B average, being age 55 or older and passing an approved defensive driving course.
- Discounts for how you manage your policy: Buying multiple policies with Direct, or renewing your policy seven to 10 days before it expires (if you’ve maintained coverage for 12 months).
Other insurance
In addition to auto coverage, Direct Auto sells motorcycle insurance in 12 states. Coverage options include:
- Liability insurance.
- Collision.
- Comprehensive.
- Medical payments.
- Personal injury protection.
- Uninsured motorist protection.
- Custom parts and equipment coverage.
- Motorcycle replacement.
- Towing assistance.
Direct Auto offers commercial car insurance for businesses and auto coverage in Mexico for drivers heading across the border. Note you must purchase coverage for Mexico in person. You can get it from any of Direct’s stores in Texas and Louisiana, plus a handful of other locations.
Term life insurance is also available. This type of life insurance is good for only a certain time period and pays your beneficiaries a predetermined amount if you die. You can choose either a six-month or one-year policy, with a maximum payout of $25,000.
Customer reviews and ratings
Direct Auto’s parent company, Direct General, has a financial strength rating of B (fair) from A.M. Best, a low rating even among high-risk auto insurers. According to A.M. Best, a rating of this level indicates that a company could be vulnerable if faced with unexpected changes to its finances.
The company also received a high number of complaints in 2015. Complaint data compiled by the National Association of Insurance Commissioners show the number of complaints a company gets relative to its market share. Direct General’s complaint ratio was 5.75; the industry median is 1.00.
The bulk of customers’ gripes were over claim delays, claim denials and unsatisfactory settlement offers.
Website and apps
The Direct Auto & Life Insurance website is easy to navigate and includes detailed explanations of its discounts, coverages, payment options and claim procedures.
Other helpful features include the Coverage Assistant and Life Coach tools, both of which ask questions about your location, family and other factors to generate coverage recommendations for auto or life insurance.
The DirectDrive app, which you can download for free on your smartphone, is the company’s most playful feature. It tracks your habits, such as hard braking and accelerating, and awards points based on how well you drive. There’s also a local leaderboard where you can see how you stack up against others. Logging safe miles can translate to savings on your policy, capped at $10 per month.
Next steps
If a spotty record or personal circumstances are keeping you from getting a policy from more well-known companies, Direct Auto insurance is worth a look, if only to compare its rates against other insurers specializing in high-risk drivers. All things being equal price-wise, you’ll likely find other companies have better claim service and stronger financial footing.
Alex Glenn is a staff writer at NerdWallet, a personal finance website. Email: aglenn@nerdwallet.com.
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