Canceling Direct Auto Insurance: A Step-By-Step Guide

Direct Auto Insurance policyholders can cancel their policy at any time, but they must ensure they have a new insurance policy in place first. There are four ways to cancel: by phone, email, fax, or in person at a local branch. Direct Auto typically charges a cancellation fee, and this is often around 10% of your unused premiums.

Cancelling by phone, email, fax, or in person

To cancel your Direct Auto insurance policy by phone, call the customer service phone number at 1-877-463-4732. You can also visit a local branch office, email [email protected], or fax a signed handwritten statement to 1-877-622-7338. If you choose to fax your cancellation request, be sure to include your full name as it appears on your driver's license, your policy number, address, date of birth, and the date you want your policy to end. Similarly, if you choose to cancel by email, be sure to include this information in your message.

Direct Auto does not process cancellations through their mobile app or website. However, you can request a cancellation online by sending an email to customer service. Your email should include your full name, address, date of birth, the reason for your request, and the date you want your policy to end.

Regardless of the method you choose, make sure you have a new insurance policy in place before cancelling your Direct Auto insurance. Cancelling your current policy without a new one in place could result in you driving uninsured, which could cost you more money in the long run.

Cancelling without a fee

Direct Auto policyholders can cancel their insurance coverage at any time using one of four methods: by phone, email, fax, or by visiting a local branch. However, Direct Auto typically charges a cancellation fee for ending your policy early. This fee is usually around 10% of your unused premiums.

To avoid cancellation fees, it is best to wait until your policy expires or is up for renewal. In the meantime, you can shop around for a new policy so that you don't have a lapse in coverage. Most insurance companies will allow you to cancel at any time, but it is important to give proper notice and follow your provider's cancellation policy to avoid unnecessary fees. Check with your provider to see if they require 15 or 30 days' notice.

If you paid any premiums in advance, your provider should refund you for these. You may also be eligible for a prorated refund on your current premium, although cancellation fees can reduce this refund. In most cases, you won't have to pay a fee at all, and if you do, it will likely be a nominal amount, such as $50 or a small percentage of your final premium.

Cancelling mid-term

To cancel your Direct Auto insurance mid-term, you can call their customer service phone number at 1-877-463-4732, visit a local branch office, email [email protected], or fax a signed, handwritten statement to 1-877-622-7338. If choosing the latter option, be sure to include your full name as it appears on your driver's license, your policy number, address, date of birth, and cancellation date.

It is important to note that cancelling your car insurance mid-term may result in penalties or fees, and it is always best to check with your provider to ensure you follow their specific cancellation requirements. Additionally, it is illegal to drive without insurance in most states, so it is crucial to have new insurance in place before cancelling your current policy.

Cancelling and reinstating

Direct Auto policyholders can cancel their existing auto insurance policy by phone, email, fax, or by visiting a local branch. However, it is important to ensure that you have a new insurance policy in place before cancelling your current one, as driving without insurance can cost you money in the long run.

To cancel by phone, call Direct Auto's customer service line at 1-877-463-4732. To cancel by fax, you can handwrite and sign a statement including your full name as it appears on your driver's license, your policy number, address, date of birth, and the date of cancellation, and fax it to 1-877-622-7338. To cancel by email, send your name, address, date of birth, and effective cancellation date to [email protected]. Finally, you can visit your insurance provider at a local branch and speak to a representative in person.

Direct Auto generally charges a short-rate cancellation fee for cancelling early in your term. This charge is typically 10% of your unused premiums and often goes toward policy administrative fees. However, for state laws that don't allow short-term cancellation fees, Direct Auto uses the pro-rata cancellation method, meaning that policyholders are refunded for the premiums they didn't use.

If your policy has been cancelled, you may be able to reinstate it. A reinstatement is when a cancelled policy is restored and reactivated by the same insurance company. There are two types of policy reinstatements: one without a lapse in coverage and one with a lapse in coverage. If you're eligible, a reinstatement without a lapse is the better option, as it helps you maintain your state's financial responsibility requirements and comply with your lienholder's insurance requirements.

To be eligible for policy reinstatement with Direct Auto, your policy must have been cancelled for fewer than 30 days, you must not have had an accident during the period that your policy was cancelled, and you must be able to pay all monies owed as of the date you request reinstatement. To request reinstatement, complete and sign a no-loss statement and pay any outstanding account balance.

Calculating your refund

When you cancel your auto insurance, you may be entitled to a refund. However, the amount you receive depends on several factors, including the timing of your cancellation, the payment method, and any applicable cancellation fees. Here is a detailed guide to help you calculate your refund when cancelling Direct Auto Insurance.

Timing of Cancellation:

The timing of your cancellation plays a crucial role in determining your refund amount. If you cancel your policy before the end of the term, you are more likely to receive a refund, especially if you have paid your premium in advance. Cancelling partway through the policy period may result in an early termination fee. It is best to wait until the end of the policy or when it is about to expire to avoid these fees.

Payment Method:

The method by which you pay your premium also affects your refund. If you pay for the entire policy term upfront and cancel before the end, you will typically receive a refund for the remaining period. On the other hand, if you pay monthly, you may or may not get a refund, depending on the timing of your cancellation. If you cancel at the end of a month or billing cycle, you probably won't receive a refund. However, if you cancel in the middle of a billing cycle, you may get a refund for the remaining days.

Cancellation Fees:

Cancellation fees can significantly impact your refund amount. Some insurers charge a flat fee, while others use a short-rate fee, which is a percentage (usually 10%) of the unearned premium. This fee is either deducted from your refund or billed to you separately. Check with your insurer to understand their cancellation fee structure.

Calculating the Refund:

To calculate your refund, you need to determine the prorated amount for the remaining period of your policy. First, find out the daily rate by dividing the total premium by the number of days in the full term. Then, multiply the daily rate by the number of days left on your policy. This will give you the earned premium, which can be subtracted from the total amount you have paid to calculate your refund.

Example:

Let's say your policy premium is $232 for a full term of 30 days, and you decide to cancel after 13 days. The daily rate would be $7.73 ($232/30 days). The earned premium for 13 days would be $100.49 ($7.73 x 13 days). If you have already paid the full $232 premium, your refund would be approximately $131.51 ($232 - $100.49). However, don't forget to consider any cancellation fees, which would further reduce your refund.

Remember to review your policy document carefully, as it may contain specific details about billing dates, cancellation fees, and refund policies. Additionally, it is always a good idea to confirm the refund amount with your insurance provider before cancelling your policy.

Frequently asked questions