Direct auto insurance is not a type of auto insurance, but a way to buy or method of selling auto insurance. Some auto insurance companies, like USAA & Amica, do not have insurance agents representing them, and sell auto insurance (and other types of insurance) direct to the public only. Auto insurance companies selling direct to the public staff call centers with licensed insurance representatives employed by the company, to sell and service the company's insurance products.
Although I think most people benefit from receiving the personal service of an agent, accountable to the customer for providing customer service, advice, and assistance, both USAA & Amica have excellent reputations for claims & customer service.
Companies like GEICO & Progressive are known for selling direct to the public, though GEICO has agents available in many large metropolitan areas, and Progressive also sells through independent insurance agents, though the products and rates will be different than buying direct.
When you call a company selling direct for an auto insurance quote, you speak with a company employee licensed to sell insurance, working from a call center, most likely out-of state (but not outside of the USA). If you buy the auto insurance policy, there is no one person at the company responsible for your account, as there would be, if you purchased a policy through an agent . So, a company employee sells you the auto insurance policy, but if you call back with a question, or to make a policy change liking adding or removing a car, whichever employee answering the phone will help you, much like you receive help when you call your cable TV company.
GEICO & Progressive seem to compete on price more than other companies, but buying direct does not always mean a better price. Selling direct mean no agent commissions to pay, but selling direct has other costs, like more marketing costs for TV & media ads, employee salaries and benefits.
A wise auto insurance shopper decides on the coverage they need, then check the rates of all the major auto insurance companies in their state, regardless of whether the company sells direct, through their own local agents, or through independent insurance agents.
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Although I think most people benefit from receiving the personal service of an agent, accountable to the customer for providing customer service, advice, and assistance, both USAA & Amica have excellent reputations for claims & customer service.
Companies like GEICO & Progressive are known for selling direct to the public, though GEICO has agents available in many large metropolitan areas, and Progressive also sells through independent insurance agents, though the products and rates will be different than buying direct.
When you call a company selling direct for an auto insurance quote, you speak with a company employee licensed to sell insurance, working from a call center, most likely out-of state (but not outside of the USA). If you buy the auto insurance policy, there is no one person at the company responsible for your account, as there would be, if you purchased a policy through an agent . So, a company employee sells you the auto insurance policy, but if you call back with a question, or to make a policy change liking adding or removing a car, whichever employee answering the phone will help you, much like you receive help when you call your cable TV company.
GEICO & Progressive seem to compete on price more than other companies, but buying direct does not always mean a better price. Selling direct mean no agent commissions to pay, but selling direct has other costs, like more marketing costs for TV & media ads, employee salaries and benefits.
A wise auto insurance shopper decides on the coverage they need, then check the rates of all the major auto insurance companies in their state, regardless of whether the company sells direct, through their own local agents, or through independent insurance agents.