What is an insurance binder for a car?

An insurance binder for a car is a temporary proof of insurance coverage that is issued by an insurance company before the official policy documents are delivered. It can be thought of as a temporary insurance certificate that provides coverage until the policy is officially in place.

An insurance binder typically includes important information such as the name of the insured, the insured vehicle(s), the coverage amounts and types, the effective date and expiration date of the coverage, and any applicable deductibles or limits.

Insurance binders are often used in situations where a policy needs to be put in place quickly, such as when purchasing a new car or switching insurance companies. They provide peace of mind to the insured that they are covered while waiting for the full insurance policy to be finalized.

It's important to note that insurance binders are temporary and do not provide long-term coverage. They are typically valid for a short period of time, such as 30 days, and serve as a temporary solution until the official insurance policy is received.