Insurance Binder With Lien Holder. A lienholder is a lender that has a legal claim on your property. Initially, what this means is that any car insurance quotes you receive will list both your and your lien holder on any policy agreement.
Your insurance binder is a crucial document. Each party's promises are secured by an insurance policy, which is ultimately a binding contract (the paperwork). 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 if you have an automobile loan, the lien holder requires coverage so its interest is protected.
The binder acts as a stopgap to satisfy the coverage requirement and allow buyers to take possession immediately.
This allows ample time for the company to process the policy; It also specifies the piece of property. Buying a car without a loan is as simple as paying the price and getting the keys with a copy of the title signed over to you. This document states that insurance is in effect temporarily.