I'm a strong believer in being direct. There is nothing wrong with going to someone and telling them 'you're being mean and insulting, its really hurtful and i'm tired of hearing it'.
One thing i've learned is you can't walk around always afraid that you may be seen as rude, especially to people who are mistreating you to begin with. Sure, you go about things nicely, try to handle it peacefully, but if a person still gets offended, oh well. You do have a right to speak up for yourself. Many people who mistreat others do get offended when their actions are called into question, as a defense mechanism. They feel they should have no consequence and don't like it when you provide consequence by pointing out their wrong actions.