If you don’t receive a binder, be sure to ask – you don’t want to take the risk of driving without proof of insurance. If you go into an insurance office and meet with an agent to set up your policy, they will likely give you a binder during that appointment. This is because they may not have the technology to set up the insurance policy right away. Smaller insurance companies that have local offices may still use insurance binders. In many cases, you’ll be able to get your full policy and insurance ID card on the same day of purchase. This is because digital technology makes it much easier and faster for insurance agents to set up a policy. However, the need for them has lessened in recent years. You can also use it to prove insurance if you need to register your car at the DMV, or if you are taking out a loan on your car.Ĭar insurance binders used to be very common. You’re legally required to have proof of insurance in order to drive, so you can use your binder if you are pulled over by the police. While your policy will contain all the details of your insurance, your binder will provide an overview of the important points. What Is a Car Insurance Binder, and How Do You Get One?Ī car insurance binder serves as a temporary form of insurance as your policy is being processed.
Here’s what you need to know about car insurance binders and how they work. When you purchase a car insurance policy, you’ll often get a binder to use as a temporary form of insurance before your policy is finalized. One common term to be aware of is the concept of a car insurance binder. When shopping for a new car insurance policy, you may hear a lot of industry terminology that you aren’t familiar with.
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