An insurance binder is a temporary issuance of proof of insurance that will "bind" or cover you temporarily until a formal policy is issued.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.
This promotion is for Auto Dealers,when the vehicles are financed by a third party which requires a Physical Damage coverage before the buyer can drive the vehicle of the lot.
Auto dealers require buyers to have proof of insurance, since the vehicle is removed from their liability when you become the new owner. If you have an automobile loan, the lien holder requires coverage so its interest is protected. You would not want to wait a week to 10 days for a policy before you drive your new car home. We can give you a written binder making it legal to drive your car home. The binder also satisfies the insurance requirements of CA Department of Motor Vehicles.