In many cases, an insurance company or agent will be able to digitally issue you an insurance binder very quickly so that you can get approved for a loan in a timely manner.
If an organization or someone like a mortgage or auto loan lender is looking for proof of insurance, you can provide them with your insurance binder since it should be enough.
It officially confirms in writing that you will be issued a formal insurance policy soon.Ī binder can be very helpful because it provides you with proof of insurance while your formal policy is still being underwritten (which means the insurance policy is being officially signed and prepared).
An insurance binder is a temporary placeholder for a formal insurance policy.
