What is an Auto Insurance Binder

How to Get an Auto Insurance Binder

An Auto Insurance Binder letter is issued to the consumer once the application for coverage has been submitted and the estimated first month’s policy has been paid in full. It is becoming more common that an auto insurance company can issue a policy immediately, in which case a Binder isn’t necessary; however, if the policy is more complicated (eg: written for more than one auto, different types of autos or a fleet), the insurance company can take up to 60 days to issue a policy. In this case, the Auto Insurance Binder is very important because it guarantees coverage before the final policy is issued.

Auto insurance binder serves as your de facto insurance coverage until you get the official auto insurance policy