What Is An Insurance Binder?
An insurance binder is a temporary issuance of proof of insurance that will “bind” or cover you temporarily until a formal policy is issued (similar to a fire binder for home owners). The binder gives the dealer the opportunity to do more business by having the ability to roll the car now instead of waiting for the customer to shop for insurance.
Who Needs an Insurance Binder?
Auto dealers require buyers to provide proof of insurance when purchasing a vehicle. Once you become the new owner, the dealer no longer assumes liability for the car. If you have an automobile loan, the lien holder demands that you carry coverage. This ensures the lien holder protects its interest in the vehicle. Without insurance, you would have to wait up to 10 days for your policy to process before you can drive your new car. To avoid this delay, we provide a written binder. This temporary insurance document lets you drive your new car home immediately. The binder meets the insurance requirements from the California Department of Motor Vehicles. You won’t face problems driving away in your new vehicle since everything gets covered. Our process is fast and efficient, and it ensures you can enjoy your car without unnecessary delays. You don’t need to stress over paperwork because we handle everything quickly and effectively with our processes. We take care of all necessary details so you can hit the road without any hassle. Enjoy instant coverage and peace of mind.
Auto Dealer’s Special
This promotion benefits auto dealers when third-party financing applies. In these cases, the third party requires physical damage coverage before the buyer drives the vehicle off the lot. The binder fulfills these insurance requirements. It gives auto dealers and buyers peace of mind, knowing everything stays in place before driving off.