All You Need to Know About Broad Form Insurance

When shopping for any type of insurance, it can often feel like the words used in each policy are made to be as confusing as possible. From gap coverage to limited liability, there are many different words at play. The variety of terminology can make it difficult to compare options, particularly if you aren’t very experienced with insurance.

One type of insurance that many drivers are not familiar with is broad form car insurance. This type of option is a particularly great option for drivers on a strict budget, but some don’t even know that it is available or how to get it.

It’s time to learn everything you need to know about broad form insurance to find out if it is a good fit for your current needs.

What Exactly Is Broad Form Insurance?

Most broad form insurance qualifies as cheap broad form insurance because these plans are the most limited in scope in both coverage and costs. That’s great for some drivers, but broad form insurance plans aren’t going to be a good fit for everyone. Before you make the choice to seek out broad form insurance, learn more about this type of insurance and its limitations.

Broad form insurance is a type of auto insurance that covers a state’s basic minimum liability requirements so that you can safely drive on the road. The full name for this insurance is actually broad form named operator insurance, but you will most often see it talked about as broad form insurance.

This type of insurance is very limited in both costs and coverage. It only covers the driving liability for the primary driver, and it also only covers the state minimum driving liability coverage. This is what makes it so affordable.

Broad form insurance is not available in every state, and specific conditions must be followed when using this type of insurance in some areas.

Finding low cost car insurance is a priority for many drivers. That’s okay, but the need for cheap car insurance cannot outweigh legality. Even when seeking an affordable plan, make sure that you are getting enough coverage to be on the roads as safely and legally as possible.

What Is Covered Under a Broad Form Insurance Policy?

Broad form insurance policies typically cover the liability insurance required to operate a vehicle in a particular state. Unlike other types of insurance that can focus on insuring the vehicle and anyone that drives it, this type of insurance only covers a single licensed driver. Anyone else who drives the vehicle will not be covered by the broad form policy.

The exact details of what is covered under a broad form insurance policy offered to you by an insurance company may vary. It is essential to read through the coverage that would be included carefully so that you select a plan that you understand.

Where Is Broad Form Insurance Available?

As mentioned above, broad form insurance isn’t available in every state. As of writing, broad form insurance is available in the following U.S. states:

• Colorado
• Delaware
• Idaho
• Iowa
• Maryland
• Mississippi
• Nebraska
• Nevada
• Ohio
• Tennessee
• Washington

If you live in one of these states and want to learn more about broad form insurance policies in your area, contact an insurance company that operates locally to see policy examples and options.

Who Should Get Broad Form Insurance?

Among drivers living in eligible states, not all drivers are going to be a good fit for a broad form insurance coverage policy. In fact, most drivers won’t be a good fit even though many would love to save money with this type of inexpensive plan.

The people who are most likely to benefit from a broad form insurance plan include:

• Individuals who need cheap insurance
• Individuals that own a low-value car
• Individuals that are happy with only liability coverage
• Individuals that do not allow anyone else to operate their vehicle
• Individuals that don’t have children or dependents that are often in the vehicle

Broad form insurance is bare-bones coverage that simply ensures you are street legal in terms of liability. It does not provide any type of coverage to protect or cover you or anyone else in the vehicle, nor does it cover any damage done to the car. It only protects you from the risks of liability in the case of an accident.

As you can see, broad form insurance is not going to be a good fit for every driver. Some people need to save money that will benefit from these limited terms, but it is often used as a short-term solution rather than a long-term option.

Photo by Kevin Schmid on Unsplash

Am I Covered if I’m Injured in an Accident?

One of the biggest questions that people have about broad form insurance is whether or not it includes any type of coverage for the driver if they are injured in an accident. The final answer will always be most accurately found in your coverage terms, but most broad form insurance policies do not include any base personal injury coverage.

However, many companies allow drivers to add on personal injury coverage at a low, affordable rate. This type of added PIP coverage can be invaluable to cover medical bills in case of an accident, so individuals that can afford to do so will often add it to their insurance plan.