Your auto insurance company’s information – Beside the name of the company is the binder number.Relevant dates – This information includes the binder’s issue date and dates that indicate how long the binder should last.Most insurance binders are two pages long and should include the following information: Secured with SHA-256 Encryption What is included in an insurance binder? Those official documents will void the binder. When your auto insurance company finally approves your policy, it will send you the documents, including a certificate of insurance. During the underwriting process, the company verifies your information and makes a final decision about retaining you as a customer. An insurance binder acts as proof of insurance when your policy is new and is only valid during that period.Īfter you select a new auto insurance company, you may need to wait 10 days to a month before the company finalizes your new policy and prepares your official policy documents. Insurance binders exist for many types of insurance, including home, auto, boat, and business. Auto Insurance Binder: A Word of CautionĪn insurance binder is essentially a contract between you and your insurance company.When might you need an insurance binder?.How does an insurance binder differ from an auto insurance policy?.What is included in an insurance binder?.And if you need to see rates from top auto insurance companies in your area, input your ZIP code into our free quote tool above. Read on to know more about what an auto insurance binder is, including how long it remains valid and when you should request it. Now, a car insurance binder differs from a full policy in at least two ways. In other words, it contains general terms upon which you and your new auto insurance company agreed for your new policy. You can obtain the document relatively quickly upon request.Īn insurance binder for an automobile contains vital information about your coverage, including your current auto insurance rates.

What is an auto insurance binder, and when do you need it?Īn auto insurance binder is a temporary document that you can present to businesses, agents, or professionals in certain situations. Since auto insurance binders are short-term, the terms and conditions of your pending policy are subject to change.Your auto insurance binder should include information like the types of coverages you have chosen and your potential auto insurance rates.Insurance binders are only temporary, but you can use them as proof of insurance when valid.

What is an insurance binder for a car