All About Direct Auto’s Grace Periods

Direct Auto’s grace period varies from state to state, but you are typically allowed at least 11 days to make a past-due payment and keep your insurance coverage.
Written by Melanie Johnson
Reviewed by Brenna Swanston
background
Direct Auto has a grace period of at least 11 days for past-due payments, depending on your state of residence. If you can’t make your insurance payment within the grace period, your coverage will be canceled.
A lapse in insurance coverage is no laughing matter. Not only will you face severe penalties for driving without insurance, but insurers will see you as riskier to cover and undoubtedly charge you higher rates. Just one missed payment can increase your insurance premium for years to come!
Some insurance companies offer grace periods after your auto insurance expires, and Direct Auto is one of them. Here to discuss Direct Auto’s policy on late payments is
Jerry
, the
trusted car insurance app
that partners with 55+
car insurance
companies to help you find the best rate on coverage. Let’s get started.

Does Direct Auto give you a grace period after your auto insurance expires?

Yes. Depending on the state where you live, you will have at least 11 days—and in some cases more—to make a past-due payment and keep your insurance coverage. If you are still unable to make a payment after the grace period expires, Direct Auto will cancel your insurance coverage.
Keep in mind that Direct Auto will never cancel your coverage without telling you. Car insurance companies are required by law to notify customers of an impending policy cancellation. You will receive a notice in the mail (or by email) that will include the final due date for your late payment. This date marks the end of your grace period.
You must do everything you can to make a payment before the end of the grace period. You may be charged a late fee; however, that fee is small potatoes compared to the costs associated with going without car insurance.  
While the penalties for
driving without car insurance
vary from state to state, you’re likely looking at fines, license suspension or revocation, a costly reinstatement fee, and a large hike to your future car insurance premium. In short, stay insured at all costs. Your wallet (and your conscience!) will thank you.

What are the benefits of a grace period?

A grace period gives you a little extra cushion to make a payment and avoid a lapse in coverage, which will negatively
impact your car insurance rates
. Going just one month without coverage could raise your future rate by as much as 8%, and longer lapses will likely raise it even more.
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How long is a typical grace period for car insurance?

Some insurance companies offer grace periods for late payments, and others do not. That said, the average grace period is about 10 days.
Direct Auto’s grace period of 11 days (or more, in certain states) is slightly longer than the average. This is good news for those of us who have trouble keeping track of payments.

Consequences of a car insurance lapse

Here comes the scary part of today’s news segment. What happens when you fail to make a past-due payment during the grace period and suffer a lapse in coverage? You’ll have to deal with the consequences.
Depending on where you live, whether you finance your vehicle, and how soon you can regain coverage, potential consequences include:
  • Fines: Fines of $500 to $1,000 are common for a first-time offense, but subsequent offenses can total as much as $5,000 in certain states! 
  • License suspension: You’ll likely have your license suspended. Unless you live in
    California
    ,
    Iowa
    , or
    Washington
    , that is.
  • Higher car insurance rates: You’ll be seen as a “high-risk driver” with a lapse in coverage on your record and face higher rates when you search for
    car insurance quotes online
  • Vehicle repossession: Your lender may have the right to repossess your financed vehicle as a result of a lapse in coverage.

What to do if your Direct Auto car insurance lapses

That said, if your Direct Auto car insurance lapses, don’t panic! If you realized too late that your coverage has expired, it’s important to act quickly to get your policy reinstated as soon as possible. Call Direct Auto at 1-877-GO-DIRECT and talk to an insurance agent. They should be able to help you
reinstate your policy
, and a brief lapse in coverage may even be forgiven
If you can’t make your car insurance payment because it’s too expensive, your best bet is to search for a new car insurance rate. Use the
Jerry
app to find the best coverage based on your demographic data (age, location, driving history, and lapse in coverage accounted for). 
Make sure to choose a policy that meets your specific state-required limits. For example, in several states, including
Florida
, you’ll need
personal injury protection (PIP)
in addition to
basic liability coverage
.
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How to avoid a coverage lapse

The best way to avoid a coverage lapse (and save a little money while you’re at it!) is to enroll in automatic payments. If you agree to set up a recurring transfer from your checking or savings account, Direct Auto may reward you with a 5% discount on your monthly insurance premium! 
Another surefire way to never miss a payment is to
pay your policy in full
. You’ll likely see an even larger discount with this option. Direct Auto may reward you with a discount of up to 9%! You can make a payment
in-store
,
online
, or in the
Direct Auto mobile app
.
Finally, perhaps the best way to avoid a coverage lapse is to keep your insurance costs as low as possible with
Jerry
. Search for a low rate from Jerry’s network of 55+ reputable insurance providers and lock in a great policy that won’t break the bank.

Direct Auto insurance grace period for new cars

The grace period for adding a new vehicle to a current insurance policy is typically between one week and one month. Direct Auto does not disclose how long its grace period for adding a new car to your current policy is. Before purchasing a new car, call Direct Auto at 1-877-GO-DIRECT to make sure the car you are about to buy is properly insured. 

How to find the best Direct Auto car insurance quotes

While you may think you already have the best rate on car insurance, chances are, you’re overpaying for coverage. It’s high time to check out
Jerry
, the car insurance comparison shopper and super app that can help you optimize your coverage!
Here’s how it works: simply download the Jerry app, and in less than 45 seconds, Jerry collects all of your information from your existing insurer. Choose from competitive quotes from top insurance companies and Jerry takes care of the rest—including securing your new policy and helping you cancel your Direct Auto policy upon request. No long forms, no calling around, no hard work. The average Jerry user saves over $800 per year on car insurance.
Yep, all that—and all without a lapse in coverage! 
Jerry
is the future of car insurance! I downloaded the app, entered the information, picked my insurance rate, and paid my fee. I even switched insurance providers easily! Jerry saved me $182/month so quickly!” —Paulina F.
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