Your policy is what you will rely on if you need to make a claim. It will also list any riders or endorsements you've added to your policy. On the other hand, your insurance policy is a legal document that specifically outlines the details of your policy, including your coverages, deductibles, limits, and more. It is a rather basic document intended to act as temporary proof of coverage. It shows a simplified, general overview of your policy and coverages. An insurance binder is a temporary document that proves you have insurance until your official policy is processed and ID cards are issued. Insurance binders and insurance policies are two different things. Vehicle information (make, model, year, etc.) Name and contact information of the insured While it may vary from one insurance carrier to the next, your insurance binder will generally outline the following information: However, if you are involved in an accident, the binder will not cover you before your actual policy becomes effective. Your insurance binder allows you to legally drive your vehicle before your official policy starts and provides you with proof that you’re covered. It is not as bulky as your actual insurance policy documents and is usually just a page or two. When you are issued an insurance binder, you receive a document outlining all of your coverages. Insurance agents will typically issue a binder when you've just purchased a new vehicle or changed your existing policy.

What Is a Car Insurance Binder?Ī car insurance binder is a temporary contract between you and your insurance company that gives you coverage until your official policy is issued. In this article, we’ll cover all things insurance binder-related, including when you would need an insurance binder, how it's different from your insurance policy, what it includes, and why they're becoming less common. As you can imagine, there’s a little more to it than that. When shopping for car insurance, you'll likely come across the term 'insurance binder.' In short, an insurance binder is a temporary document that provides proof of insurance coverage.

What is binder insurance