First Acceptance Insurance auto insurance

Overview

First Acceptance Insurance is a Nashville-based nonstandard auto insurer. It covers drivers whom standard carriers turn away or price steeply because of their driving record, a gap in coverage or a preference for paying month to month. It ranked #52 among U.S. private passenger auto insurers by 2025 direct premiums written according to NAIC market share data, with $576.8 million, or 0.16% of the national market.

The parent, First Acceptance Corporation, is a stock company whose shares trade on the OTCQX market under the symbol FACO. Its 2025 annual report names investor Gerald J. Ford as the controlling stockholder. Policies are written by three subsidiaries: First Acceptance Insurance Company, Inc., First Acceptance Insurance Company of Georgia, Inc. and First Acceptance Insurance Company of Tennessee, Inc. According to that report, the company writes in 15 states and holds licenses in 11 more that it does not currently use. It now sells only through independent agents.

History

The company's website says First Acceptance Insurance Company was founded in 1969. The current business took shape on April 30, 2004, when Liberté Investors Inc., a holding company chaired by Ford whose main asset was undeveloped land, bought USAuto Holdings. USAuto was a Nashville retailer and underwriter of nonstandard auto insurance, co-founded in 1995 by brothers Stephen J. Harrison and Thomas M. Harrison Jr. The combined company took the First Acceptance name and expanded USAuto's chain of storefront agencies. It operated 146 stores in September 2004, 440 at the end of 2015 and 350 at the end of 2017, staffed by employee-agents.

Two ownership changes since then matter to customers:

• Delisting, 2018. On March 19, 2018, First Acceptance announced it would voluntarily delist its stock from the New York Stock Exchange and stop filing reports with the SEC. It filed the delisting in late March and the deregistration in April 2018, and has since published annual reports through OTC Markets.
• Sale of the stores, 2023. Effective December 1, 2023, it sold its retail agency, Acceptance Insurance Agency of Tennessee, then 288 leased locations in 13 states, for up to $120 million, including contingent payments tied to premium targets through December 2026. The buyer, whom the annual report does not name, continues to sell First Acceptance policies as an independent agent.

The business is now concentrated. In 2025 two independent agent groups produced 84% of premiums earned: the buyer of the former stores and an agency that sells through technology-driven channels. About 850 other agent locations wrote the rest. Since July 1, 2024, half of the business from that second agency has been ceded to an outside reinsurer under a quota-share agreement.

Auto insurance coverage

First Acceptance writes essentially one product, a nonstandard personal auto policy. Its 2025 annual report describes the policy as varying between liability coverage and physical damage (collision and comprehensive). Physical damage accounts for less than 2% of its claim reserves, and the company has long described most of its customers as seeking the minimum coverage required by law. The company also underwrites an optional renters policy.

In Texas it does not issue policies directly. Business there is written through a county mutual program and assumed by First Acceptance under 100% quota-share reinsurance. The company says it specializes in drivers who struggle to find coverage elsewhere, including those with serious violations such as DUIs.

Discounts and programs

The company's website does not list discounts or a telematics program. Pricing is quoted by agents or online. The annual report notes that most policyholders pay in monthly installments, and installment billing fees and service charges are a meaningful source of company revenue. If you shop nonstandard coverage, compare the full cost including fees, not only the down payment.

Claims

Claims are reported by phone at 800-779-2103 (Monday–Friday 6 a.m. to 8 p.m. Central, weekends 8 a.m. to 5 p.m.) or by email. After the first call, First Acceptance sends a link to its smartphone app so you can photograph the damage. A claim specialist confirms receipt and can arrange rental car services if your coverage includes them. Roadside assistance is a separate line, 866-936-0485.

Ratings and reputation

First Acceptance's 2025 annual report does not state an AM Best rating for its insurance companies. The most recent rating it disclosed was C++ (Marginal) from AM Best, in its final SEC annual report in March 2018. Its 10-K filed in March 2016 had reported B (Fair). Check AM Best's site for the current rating before relying on either figure. See how AM Best ratings work.

Financially, the company reported net income of $30.2 million for 2025, after $26.3 million in 2024, and stockholders' equity of $199.9 million at year-end 2025. Its reports note the usual litigation of a nonstandard carrier, including bad-faith claims seeking amounts above policy limits. They also describe the legal climate in states where it has substantial operations, such as Florida and Georgia, as often viewed as unfavorable to insurers. First Acceptance does not appear in J.D. Power's auto insurance rankings.

Who it suits

First Acceptance is built for high-risk drivers and people buying minimum or basic coverage on a monthly budget, especially in the Southeast. Its products reach customers almost entirely through two large agency partners, so service starts with the agent who sold the policy.

• Strengths: Accepts drivers with violations, DUIs or lapses; available in 15 states; app-based photo claims; profitable in 2024 and 2025.
• Weaknesses: No published discounts or telematics; heavy reliance on two agencies; last disclosed AM Best rating was C++ (Marginal) in 2018; no longer files with the SEC, so less public financial detail.

How to contact First Acceptance Insurance