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On July 11, Direct General Insurance Agency of Tennessee d/b/a Direct Auto Insurance was hit with a class action lawsuit accusing it of selling “worthless” car insurance policies to low-income minorities.
Plaintiff Norbert May filed the class action lawsuit, which alleges Direct Auto took advantage of low-income minorities by offering car insurance at premiums that were significantly lower than those of its competitors. The insurer profits from the premiums but refuses to honor claims, the insurance fraud class action lawsuit says, making the insurance policies worthless to the policyholders.
“Direct Auto Insurance Company developed a business strategy wherein the company planned to secure customers by offering auto insurance at premiums that were substantially lower than its competitors and market rates,” the insurance scam class action lawsuit says.
According to the Direct Auto class action lawsuit, “Direct Auto Insurance Company intentionally targeted consumers with low to moderate incomes, including a high percentage of African-American and Hispanic individuals, who did not have the financial ability to hire legal representation to defend them” against the insurer’s allegedly predatory practices. May alleges the insurer had no intention of paying claims.
“As part of its business strategy, Direct Auto Insurance Company planned to challenge claims made by its policyholders through filing of declaratory judgment actions,” the insurance scam class action lawsuit says. “Direct Auto Insurance Company knew that many of its policyholders could not afford legal representation and would not challenge the declaratory judgment actions in court.”
In the Direct Auto class action lawsuit, May argues that the practice of filing “meritless” declaratory judgment actions based on alleged misrepresentations in the insurance policy applications indicates that Direct Auto never intended to honor the claims.
The insurance scam class action lawsuit accuses Direct Auto Insurance of violating the Illinois Consumer Fraud and Deceptive Practices Act by offering consumers artificially low insurance premium prices to induce them to purchase the policies, even though the insurer never intended to honor their claims.
May seeks certification of the Direct Auto Insurance class action lawsuit, plus damages for fraud, breach of contract and alleged violations of the Illinois insurance code.
May is represented by Edward McCauley of Kelleher & Buckley and Daniel Konicek of Konicek & Dillon.
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24 thoughts onClass Action Lawsuit Alleges Direct Auto Sells ‘Worthless’ Insurance
Is this class action still open for new plaintiffs to join or is it closed now? I know someone who may want to join it if it’s still open.
gave me 1200 for an escalade accident..add me
On March 14, 2023, I will stop by the police at 9:00 at night, after they ran my driver’s license they told me that my license was suspended since October of 2022, but I acquired direct Auto insurance in August of 2022. My premiums were $332.70 and I paid that same amount from August of 2022 to March of 2023 when I found out that my driver’s license was suspended. I have tried to acquire an attorney to help me with the situation because I was not covered for those months that I was paying the insurance to direct Auto. When the police found out that my license was suspended they confiscated my license and also my license plate which left me stranded in a dark area in Tampa right before I had to go home I had to catch a uber several Ubers after that day until the situation was fixed 3 days later. I am requesting my money back from direct Auto insurance from August of 2022 to March of 2023 when I was not insured thank God I did not get into an accident but the problem was my my license was suspended which is now kept me from getting cheaper and lower cost car insurance
Does anyone have a telephone number to a good lawyer that will handle this case
I am going through with Direct Auto a terrible experience my GL450 Mercedes hit a pothole and caused extensive damage and Direct Auto said it was only $79 worth of damage
Exactly they ripped me out of my pocket too when I got in a car accident
My claim was 2600 dollars worth of damage they payed me $294.00 I think we all need to get a layer
On a trip to see family my car was stolen. Supplied direct auto with all the information they requested. Upon the 30 waiting period they said I needed to give more information and documentation. I did. Then they said that I lived in the state I was visiting. I told them I live with my son. And am on a fixed income. They said I needed to give them a utility bill. I live under my sons roof and don’t pay rent or utilities. They deducted $4,000 from value of the car. Law states I had 39 days to purchase a new car and they will reimburse the taxes. I was within that time frame since the date they sent check out. They said no. Since my Initial claim, there were 3 adjusters who handled my claim and none of them work there anymore. Direct Auto is a fraudulent company. I saw we all start a class action suit against them
On a trip to visit family my car was stolen. Direct auto assigned claims adjuster. She said I gave her all the I formation and needed nothing for the er. Received letter stating I failed to report car ccident. Car was stolen. I kept getting false instructions from them and when I gave them what they needed they came back and wanted more. They deducted $4,000 and I was entitled to receive tax if I purchased a car within 30
Days of check being cut. They refused me. I went through 4 claims adjusters and not one of them works there any more. I say we all join forces and start a class action suit against them