Direct General Auto Insurance Research Indicates High “Intent to Drive” among Uninsured Motorists

NASHVILLE, Tenn.--(BUSINESS WIRE)--In a recent survey conducted by Direct General, the Nashville-based auto insurance provider, 36 percent of consumers* reported that they will continue to drive even if they are unable to keep their car insurance. With the approaching July 4^th holiday weekend and more cars on the road as a result, the company is urging consumers to think twice about driving while uninsured or without adequate auto insurance coverage.

“But the ‘intent to drive without insurance’ statistic we uncovered definitely supports this forecast and heralds a serious issue for all drivers.”

In that same survey, nearly one in three consumers polled think that at least 40 percent of drivers on the road today are driving without car insurance. Driving without auto insurance is illegal in most states, and yet consumers do think that many are willing to risk getting caught if it means continuing to be able to drive.

According to Direct General, part of the challenge for consumers is that standard insurance companies will not write auto insurance policies for drivers who don’t currently have insurance, have low credit ratings or lapsed payments.

“It’s sadly ironic that people can’t get car insurance because they don’t have insurance, or have experienced financial challenges,” said Dan Tarantin, president and CEO of Direct General. “As the economy continues to wane and unemployment rises, more drivers sharing the road will be letting their auto insurance lapse or already are rolling the dice and taking their chances without insurance.”

Direct General is launching a new advertising campaign this month to reach consumers tempting fate or in need of an insurance provider who knocks down these barriers. “We’ll do right by you” is the overarching campaign theme and according to Tarantin, “it’s about making car insurance affordable and available to all – being inclusive, not exclusive.”

Driving while uninsured is just one of the key messages appearing on billboards and out-of-home advertising in major markets with the goal of making consumers stop and think a little harder before they get behind the wheel without car insurance. “We’re trying to help consumers facing these dilemmas,” said Tarantin. “Whether someone is currently insured or not, regardless of past history, we are offering car insurance that fits the individual, not the other way around.”

Earlier this year, the Insurance Research Council (IRC) released new statistics about uninsured drivers indicating that the recent economic downturn is expected to trigger a sharp rise in the actual percentage of uninsured motorists: from 13.8 percent in 2007 to 16.1 percent in 2010, the most in at least two decades. “This data clarifies that the real number of uninsured drivers is not as high as the consumers in our survey think,” said Tarantin. “But the ‘intent to drive without insurance’ statistic we uncovered definitely supports this forecast and heralds a serious issue for all drivers.”

Direct General maintains that it doesn’t have to be this way. “There are companies who will actively work with consumers to get them the auto insurance coverage they need at low rates, and welcome them back even if they have been forced to drop coverage. Direct General is one such company,” said Tarantin.

SIDEBAR:

Direct General’s promise to consumers and business model are based on doing things differently, says CEO Dan Tarantin. “Everyone at Direct General is committed and on board with what we call our ‘credo.’"

• We actively work with you.
• We will provide you good coverage at a good price, without penalizing you unfairly.
• We will take good care of you.
• We won’t let you down or disappoint you.
• We will welcome you back even if you had to drop coverage.
• We will be flexible and reasonable in how you pay, and when you pay.
• We are people like you. People who live and work in your neighborhood.
• We have integrity, we are honest and we will deal fairly with you – no BS.

*Consumer online survey conducted among both Direct General customers and non-customers.

Direct General is an automobile insurance provider that helps consumers get and keep car insurance. Direct provides consumers with the flexibility to determine when and how they pay their premiums. The company also helps insure drivers with weak or non-existent credit histories, who have experienced a lapse in coverage, or who have marginal or troubled driving records. Direct General has over 400 offices in 13 Southeastern states (AR, FL, GA, KY, IL, LA, MS, MO, NC, SC, TN, TX and VA). For more information, visit www.direct-general.com.

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