Certificate of Car Insurance
A certificate of car insurance may be in the form of an insurance identification card (such as the one you are required to keep in your vehicle) or the document may actually be full sized form that has been issued by the car insurance company at the request of the policy holder for a specific purpose.
A certificate of car insurance may be requested by a bank or lender that financed the purchase of a vehicle in some circumstances. For example, when financing a vehicle, the lender will usually require that full coverage insurance be maintained on the vehicle until the loan has been completely paid off. In addition, the lender will usually be required that it be named an additional insured party on the policy so that they can be paid in the event the vehicle is totaled in an accident.
If the lender ever has cause to suspect that you are not keeping adequate insurance coverage, the company may request a certificate of car insurance. Most of the time, if the lender requests a certificate of car insurance, it will not accept the insurance ID card carried inside the vehicle and will require a signed document from the agent or insurance company.