Florida No-Fault closes 5 Tampa stores

BRANDON - Jenny Bonomi had just made it to work when she got the surprising news the insurance company she had just signed up for had locked its door without any warning.

In disbelief, Bonomi had to see for herself.

"I was blown away! I came in and they said you know that insurance place closed down? And I said no it's not I just got insurance," she said.

Bonomi had just agreed to a six-month policy with Florida No-Fault insurance. But two weeks later, the business on U.S. 301 in Brandon was vacant.

Direct General Insurance Agency, Inc., the non-standard auto insurance agency selling under the Florida No-Fault, temporarily closed five out of 26 stores in Tampa October 30, according to Direct Auto Insurance representative Courtney Ryder.

The following stores in Tampa have been temporarily closed:

• 6821 West Hillsborough Ave, Suite 15
• 9017 East Adamo Drive, Suite 113
• 152 South Dale Mabry Highway
• 11719 North Dale Mabry Highway
• 9340 North Florida Ave., Suite B

"The Company and its affiliated insurance company, Direct General Insurance Company (DGIC), are experiencing extraordinary levels of losses which it believes are directly attributable to a dramatic increase in illegal insurance fraud activity," Ryder said in a statement. "The companies are working aggressively to address these issues and minimize the negative effect on customers and business."

Like many customers, Bonomi was greeted with a sign on the door that read "this office is now closed" and a number to call to get more information

The insurance agency specializes in high-risk policies and does business in other states as well. A recorded message for the closed stores stated no new policies are being written in those areas. 

Ben Shephard who works next door at Pizza Zone watched customers walk away dumbfounded and confused with the sudden shut down.

"People are even coming in to our store asking us if we know what happened, but we really have no idea what happened," Shephard said. "They were here Thursday night and gone Friday morning."

As for Bonomi, she plans to finish out her policy with Florida No-Fault and once again begin her search for new coverage.

"At this point I will pay for six months and then I will go find a place that's actually there," she said.

Customers trying to make policy payments at one of the closed stores, can contact the company's customer service line at (877) GODIRECT (463-4738) or through its website at www.directgeneral.com.

Ryder said the companies are working with law enforcement agencies, including the Department of Financial Services, Division of Insurance Fraud, to address the criminal activity.

Customers are asked to report any suspicious activity to DFS's insurance fraud hotline (800) 378-0445 or online at www.MyFloridaCFO.com/fraud.