Penny Gusner is a senior insurance writer and analyst at Forbes Advisor. For more than 20 years, she has been helping consumers learn how insurance laws, data, trends, and coverages affect them. Penny enjoys translating the complexities of insurance.
Penny Gusner Insurance Writer and AnalystPenny Gusner is a senior insurance writer and analyst at Forbes Advisor. For more than 20 years, she has been helping consumers learn how insurance laws, data, trends, and coverages affect them. Penny enjoys translating the complexities of insurance.
Penny Gusner Insurance Writer and AnalystPenny Gusner is a senior insurance writer and analyst at Forbes Advisor. For more than 20 years, she has been helping consumers learn how insurance laws, data, trends, and coverages affect them. Penny enjoys translating the complexities of insurance.
Penny Gusner Insurance Writer and AnalystPenny Gusner is a senior insurance writer and analyst at Forbes Advisor. For more than 20 years, she has been helping consumers learn how insurance laws, data, trends, and coverages affect them. Penny enjoys translating the complexities of insurance.
| Insurance Writer and Analyst
Updated: Mar 4, 2024, 6:28am
Have a question we may not have answered?Ask our editors here
Have a question for Lizzie Nealon or our other editors?
Ask here for a chance to be featured in a story.
This form is protected by reCAPTCHA Enterprise and the Google Privacy Policyand Terms of Serviceapply.
Send a note to Lizzie Nealon, Penny Gusner and our other editors. We read every email.
By submitting this form, you agree to allow us to collect, store, and potentially publish your provided information, including name and question, in the article or any related content. You confirm that the submitted content is original, accurate, and non-infringing on any third-party rights. We may contact you via the email address provided for follow-up questions or to notify you if your question is selected for publication. See our Terms of Useand our Privacy Policy.
Thank you for submitting your question.Keep reading Forbes Advisor for the chance to see the answer to your question in one of our upcoming stories. Our editors also may be in touch with follow-up questions.
Continue readingEditorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Direct Auto’s level of complaints is very high and it received a bad grade from collision repair professionals for claims handling.
Direct Auto may be an option if you have issues finding a car insurance company to sell you insurance because of a spotty driving record, lapse in insurance coverage or bad credit. Its optional coverage offerings are slim but it has a decent menu of car insurance discounts.
Nashville-based Direct Auto was founded in 1991 as a nonstandard car insurance company specializing in policies for high-risk drivers. Drivers considered high risk typically include those with bad credit, a lapse in insurance coverage or a history of driving violations or claims. Direct Auto offers flexible payment plans, and if you want to pay cash for your policy, you can by visiting one of their 400 office locations.
National General Insurance acquired Direct Auto in 2016. And in 2021, Allstate purchased National General and its subsidiaries, making Direct Auto a part of Allstate. Direct Auto continues to keep its name and operates independently.
Similar to other car insurance companies, Direct Auto sells the following standard types of car insurance:
Liability car insurance covers the property damage and medical expenses of others when you’re at fault for an auto accident. Liability insurance also covers court judgments, settlements and your lawyer fees related to your accident.
Uninsured motorist insurance covers the medical expenses of you and your passengers if you’re in an accident and the at-fault driver doesn’t have liability car insurance. Underinsured motorist insurance pays medical expenses for you and your passengers if the at-fault driver doesn’t have sufficient liability insurance to cover your bills. “Property damage uninsured motorist coverage” is also available in some states, and it reimburses you for repairs if an uninsured driver damages your vehicle.
Personal injury protection pays medical, hospital and funeral expenses associated with an auto accident, regardless of which driver is at fault. PIP also covers lost wages and replacement services for tasks you cannot carry out due to your injuries, such as child care.
MedPay covers medical expenses related to a car crash, no matter who is at fault for the accident. Medical payments insurance typically has lower limits and doesn’t have the extra benefits PIP provides, such as payment for lost wages.
Collision car insurance pays to repair or replace your vehicle when it’s damaged or destroyed in an accident, such as in a wreck with another car or if you hit an object, like a pole.
Comprehensive insurance covers non-crash damage to your car. Situations covered by comprehensive car insurance include hitting an animal, fire, theft, vandalism and damage from severe weather and falling objects.
Collision and comprehensive insurance are optional and often sold together. If your car is leased or financed, your lender may require you to purchase both.
Some optional coverages available when buying a Direct Auto insurance policy include:
Yes, Direct Auto offers accident forgiveness coverage. If you qualify for accident forgiveness with Direct Auto, you can include it—for an additional cost—so that one at-fault accident will not cause your rates to rise.
Typically, you must have a clean driving record to add accident forgiveness to your insurance policy. Then, if you’re involved in a minor accident or violation, your car insurance will “forgive” the incident and your premium will not increase. However, this incident will remain on your official driving record.
No, Direct Auto does not offer new car replacement coverage.
New car replacement coverage is designed to cover the cost of a brand new vehicle of the same make and model as your vehicle if it’s totaled due to a problem covered by your policy, such as an accident or fire. Without new car replacement you receive a depreciated amount for your car.
No, Direct Auto doesn’t sell gap insurance.
Gap insurance is helpful to car owners who owe more on a vehicle than it’s worth. Gap insurance—also sometimes called lease/loan coverage—pays the difference between what your vehicle is worth and what you owe on it, in the event of a total loss.
No, Direct Auto does not have a diminishing deductible feature.
A deductible is the amount deducted from your claim payout check when you make a collision or comprehensive insurance claim. Diminishing deductible coverage typically lowers your deductible amount every year you don’t make a claim.
Yes, Direct Auto offers SR-22 filings, often called SR-22 insurance.
An SR-22 is a form your car insurance company files with the state that proves you have the state’s minimum liability car insurance requirements. Common reasons why you may be required to file an SR-22 include causing an accident while driving uninsured, having a DUI conviction or having your license reinstated after a suspension.
No, Direct Auto does not offer pay-per-mile insurance. With pay-per-mile insurance you normally pay a daily or monthly base rate plus a per-mile rate. This type of program can be a good fit for low-mileage drivers.
If you’re looking for a pay-per-mile insurance company, consider a company such as Metromile or the SmartMiles program by Nationwide.
No, Direct Auto does not offer rideshare insurance for drivers who work for transportation services like Uber or Lyft.
Direct Auto does offer commercial auto insurance, which can insure you if you’re a food delivery driver or courier.
Direct Auto offers a variety of car insurance discounts. Discounts and savings may vary by state.
Direct Auto has a complaint level that is about six times higher than the nationwide industry average. This complaint level is substantially higher than most of the nation’s largest car insurance companies. Direct Auto’s insurance complaints tend to be about claim handling, including claim delays and denials.
In a survey of collision repair professionals by CRASH Network, Direct Auto earned a D+ grade, based on the score given to its parent company National General.
The survey was based on the opinions of auto body professionals, who see how insurers compare in the use of lower-quality repair parts, whether insurers encourage the use of repair procedures recommended by car makers, and whether an insurer’s claims processes lead to fast and satisfactory claims for customers.
Direct Auto offers auto insurance in the following states:
Direct Auto offers more than just car insurance. The company also sells:
Direct Auto’s mobile app provides an easy way to access your account. Features include:
Get the Forbes Advisor newsletter for helpful tips, news, product reviews and offers from a name you can trust.
Thanks & Welcome to the Forbes Advisor Community!This form is protected by reCAPTCHA Enterprise and the Google Privacy Policy and Terms of Service apply.
I agree to receive the Forbes Advisor newsletter via e-mail. Please see our Privacy Policy for more information and details on how to opt out.
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
Was this article helpful?
Share your feedback Send feedback to the editorial team Thank You for your feedback! Something went wrong. Please try again later. Car Insurance Reviews Recommended Reading
By Penny Gusner
By Jason Metz
By John Egan
By Meera Pal
By Forbes Advisor Brand Group
By Penny Gusner
© 2024 Forbes Media LLC. All Rights Reserved.
Are you sure you want to rest your choices?The Forbes Advisor editorial team is independent and objective. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site. This compensation comes from two main sources. First, we provide paid placements to advertisers to present their offers. The compensation we receive for those placements affects how and where advertisers’ offers appear on the site. This site does not include all companies or products available within the market. Second, we also include links to advertisers’ offers in some of our articles; these “affiliate links” may generate income for our site when you click on them. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Advisor. While we work hard to provide accurate and up to date information that we think you will find relevant, Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. Here is a list of our partners who offer products that we have affiliate links for.
