Once you apply, the insurance company initiates a process to assess the risk of each driver. However, there is actually a lot of work that happens behind the scenes. When you go to an auto insurance agent’s office and buy same-day cheap auto insurance coverage, it’s easy to assume the process is straightforward. What is a binder for auto insurance? Most auto insurance consumers don’t understand what goes on after they submit an application. As long as you make a payment with your application, the insurer will give you a temporary binder letter.A quote is an estimate – your rates aren’t guaranteed until after the policy has been fully underwritten.The application must be underwritten and fully reviewed before it can be issued.When you apply for an auto insurance policy, the formal policy isn’t issued right away.
A binder letter is one of the first steps towards managing an auto insurance policy.
