National General/Direct Auto Experience
I recently dropped Direct Auto on January 17th after facing rude customer service and constant extra fees that seemed unwarranted. Here’s my story:
I paid my Direct Auto insurance on January 6, 2025, and was set up on autopay. Unfortunately, I accidentally made the payment two days before my scheduled auto-draft date, which led to Direct Auto withdrawing two payments: one I made and the automatic draft. I called on January 7 to explain that my account had gone negative due to the second payment. The representative acknowledged the issue and assured me that a refund was initiated.
I received the refund on the same day, and my bank confirmed that everything was back in order. However, three days later, I received an email and three missed calls stating that I owed $422 or my policy would be canceled on January 29. Distressed, I called customer service, only to be told that my original payment was refunded after my bank reported insufficient funds.
I figured I should just pay again for the month but disputed the $22 late fee, as I hadn’t been late in my payment. During my calls, I encountered eight different representatives, each providing conflicting information and all having poor attitudes. Frustrated, I decided to find a new insurer to avoid receiving a lapse letter from the DMV.
On January 16, I switched to National General. The next day, I called Direct Auto to cancel, which they did without issue. Fast forward to March 7, I received a letter from the DMV stating that Direct Auto had reported a lapse in my insurance, and I owed $150.
How is it possible for me to have a lapse in coverage when I ensured I was insured before the cancellation due to non-payment? I thought a lapse occurred when payments weren’t made within the grace period. I had coverage until the 29th, and I obtained new insurance on the 16th, canceling Direct Auto promptly afterward.
Additionally, I’ve had ongoing issues with Direct Auto since I was 19, resulting in eight negative items on my credit report. This has severely impacted my credit score, making it difficult for me to apply for anything in my name. Ironically, I didn’t even own a car at 19 and only had my phone bill in my name. Why would National General send my payment to collections if I wasn’t even required to have insurance at that age?
I feel like I’ve been scammed and lied to all this time, becoming an easy target because I’m sometimes too trusting. I’m willing to pay whatever it takes to avoid penalties, but now I’m starting to realize that I’ve just been taken advantage of.
Any advice or tips on how to handle this situation would be greatly appreciated!
I’m really sorry to hear about your frustrating experience with Direct Auto and the issues you’ve faced with your insurance coverage and credit. It sounds incredibly stressful, and it’s understandable to feel overwhelmed given everything you’ve described. Here are some steps you might consider taking:
Document Everything: Keep a record of all your interactions with Direct Auto, including dates, times, and the names of the representatives you spoke with. This information can be helpful if you need to escalate your complaint.
Contact a Consumer Protection Agency: Reach out to your local consumer protection agency or the Department of Insurance in your state. They may be able to assist you or provide guidance on how to address discrepancies in your insurance history.
File a Complaint: If you haven’t already, consider filing a formal complaint with the Better Business Bureau (BBB) regarding your experience with Direct Auto and their customer service. This may prompt them to take your concerns more seriously.
Reach Out to the DMV: Since you received a lapse notification, it might be helpful to contact the DMV directly to explain the situation. Provide them with proof of insurance from National General and your cancellation email from Direct Auto. They may be able to help clear up the misunderstanding.
Monitor Your Credit: Request a free credit report from all three major credit bureaus. This will help you verify what’s being reported and where inaccuracies may lie. If you find errors, dispute them with the credit bureaus.
Consult with a Legal Professional: If the issues persist and continue to impact your financial life, consulting with a consumer rights attorney might be beneficial. They can offer you advice specific to your situation and help you understand your rights.
Stay Informed: Educate yourself about consumer rights with respect to insurance companies and credit reporting. Understanding these can empower you to navigate future situations more effectively.
It’s important to advocate for yourself, so don’t hesitate to request the resolutions you think are fair. I hope you find a swift resolution to your situation. Good luck!