Direct Car Insurance offers non-standard (higher risk) auto insurance policies regardless of driving history (tickets, accidents, etc,), or credit problems. They specialize in motorcycle insurance. Direct car insurance doesn’t require a credit card or checking account, and you can customize your payment plan to fit your budget. Incorporated in 1991, Direct General Corporation is headquartered in Nashville, Tn. with over 400 local offices in 13 Southern states.

Direct Car Insurance writes the liability auto insurance policies that are required throughout the United States. Each state has their own minimums. Liability coverage pays for physical or bodily injury to another individual or property loss or damage you occasion because of the negligent use of a vehicle. It may also cover an accident caused by a member of your family who lives with you or a individual operating your car with your permission. The coverage may also cover legal expenses if you’re sued due to an accident. There are generally 2 types of liability coverage.

  • Bodily Injury (BI) covers costs of death or injury to pedestrians or individuals in another car. It may also pay for costs of injury to your passengers who are not members of your household.
  • Property Damage (PD) covers damages to another person’s vehicle or property (buildings, utility poles, fences, signs, trees, etc.)

You may choose to buy higher limits than the state minimums to fully protect you from litigations. Generally, cars today are worth more than the state’s minimums, and medical bills too can easily exceed the minimum requirements. If you are judged negligent in an auto accident and the damages are greater than your insurance limits, you can be sued for those costs not covered by your car insurance.

direct car insuranceUninsured Motorist (UM) pays for bodily injuries inflicted by an at-fault motorist who has no liability insurance or a hit-and-run driver. Underinsured Motorist (UIM) covers the difference between the states minimum limits and the liability limits of the at-fault driver up to your UIM limits.

Direct Car Insurance collision and comprehensive (almost always required on new car insurance) policies cover damage to your own vehicle. You will be required to pay for a part of the loss, called the deductible. Deductibles (which you may determine) can range anywhere from $0 to $1,000. Although, some states don’t require physical damage coverage, your bank or lender may, if they still hold the title to your vehicle. Depending on the worth of your vehicle, you may decide that coverage for collision and/or comprehensive coverage is not worth it. Collision covers damage caused by an accident with another car (regardless of fault) or with stationary objects (trees, buildings, etc). Comprehensive covers damage caused from most other causes (fire, theft, hail, etc).

Optional insurance coverage available through Direct Car Insurance include:

  • Accidental Death Benefit (life insurance) pays if the policy holder dies because of a car accident.
  • Custom Equipment covers “non-factory” items such as CB radios, cell phones, tape decks, CD players, etc. custom installed after the vehicle left the assembly line.
  • Gap Coverage for Financed or Leased Vehicles covers the difference between what you still owe on your lease or loan and your vehicle’s actual value.
  • Medical Payments pays medical and funeral costs for you or your passengers if hurt or killed in an accident. It also provides coverage for you and your family if hit by a car while walking, or if riding in someone else’s vehicle. This pays even if you’re at fault in the accident.
  • Collision pays for a new car if the cost to repair your damaged vehicle is more than the cost of a new car. This feature is generally available only during the first 3 years of a car’s life.
  • Rental Reimbursement covers a specific amount per day ($20, etc,) to rent a car while yours is being repaired.
  • Towing pays part or all of the cost to tow your car for repairs.
  • Uninsured Motorist Property Damage (UMPD), available if you don’t have collision insurance, pays within specified limits after a deductible, the damage to your car caused by an at-fault, identified, uninsured driver.

Various premium rating factors place you in a group of policy holders with similar related risks. Insurance companies establish a rate for each individual group based on the number and amount of claims paid for all the members in that group.

Factors used by Direct Car Insurance to set rates include:

  • Age, marital status, and gender – Statistics demonstrate that certain groups of drivers (young unmarried males for instance) have more accidents. An increased risk of loss means higher premiums.
  • Coverage limits – The more insurance coverage you purchase, the higher the premium, naturally.
  • Driving record – Drivers with tickets and accidents will pay higher premiums than those with clean driving records.
  • Other Drivers in the Household – The driving records and ages of other drivers in your home may affect the rate. Most car insurance policies cover all family members while driving your vehicle. You may risk your coverage if you conceal this information.
  • Location – Heavily populated areas have more traffic, vandalism, and thefts. Urban drivers may pay higher rates than rural drivers.
  • Type of vehicle – Some cars cost more to repair, are frequently stolen, or more likely to be damaged in an accident.
  • Use of vehicle – The distance you drive to work, and annual mileage may affect your premiums. Those who commute lengthy distances or drive extra miles per year will generally pay more for auto insurance than those who live closer to work and drive less miles per year.
  • Credit history – Insurance companies (Direct Car Insurance excepted) consider your credit history and financial stability when setting rates.

There are many discounts available to policy holders.

  • Anti-theft devices – Devices that deter theft or vandalism lower your comprehensive coverage premium.
  • Auto/home packages – Offered to those who buy their homeowners and automobile policies from the same company.
  • Car pool – Available to those who car pool.
  • College student away at school – For college students who go to a school over 100 miles from home, and have no vehicle.
  • Defensive driver – Drivers over the age of 55 can lower their premium after passing a credited defensive driving course.
  • Good driver – For those who maintain a clean driving record.
  • Good student – Young drivers who maintain at least a “B” average can benefit.
  • Low annual mileage – Vehicles driven less than 7,500 (usually) per year.
  • Mature driver credit – Drivers over a specified age, usually 50.
  • Multiple vehicles – When the same insurance company covers more than one car in your household.
  • Safety devices – Air bags, anti-lock brakes, automatic seatbelts, fog lights, etc,.

Car insurance companies are not required by law to insure everyone, and most companies deny what they consider “unacceptable” risks. If you’ve found it difficult to get cheaper car insurance elsewhere, remember that insuring high risk drivers is the business of Direct Car Insurance.

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