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?.
