In these cases, an insurance binder would be useful. For example, an insurance binder may be necessary if your car insurance application is undergoing extended consideration because your driving history carries multiple DUIs. In this case, your carrier may issue an insurance binder so you can meet the insurance requirements for closing on an auto loan. This is why insurance binders typically last 30 to 90 days - you need the temporary coverage until you can finalize a more long-term policy.
