Florida Auto Insurance Glossary:
What Is A Binder?:

A Binder refers to a temporary insurance contract in which until the receipt of the permanent policy from the company you will be provided with the coverage proof. However, a binder is subjected to pay the premium for the auto insurance policy.

Benefits of a Binder:

In a binder, an applicant is covered for a brief time period. If there is any kind of accident which might cause problems to the policyholder, he/she would get the entire protection which would be otherwise provided in a normal car insurance policy.

You can execute an insurance binder either orally or through a written agreement. However, it is important to note that a term of insurance binders in insurance policies is different in different state.

Furthermore, it is also important to note that there is no guarantee of a policy to be issued to applicants who have succeeded in achieving an insurance binder.

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