Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Written by Daniel Walker
Licensed Car Insurance Agent for 15 Years Daniel Walker

Chris Tepedino is a feature writer that has written extensively about auto insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and Cinncinati....

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Reviewed by Chris Tepedino
Feature Writer Chris Tepedino

UPDATED: May 25, 2021

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We hear a lot of hype these days about broad form car insurance (also referred to as broad form named operator insurance), and how it can save us money if we have more than one vehicle to insure. It is a pretty good deal. No matter how many vehicles you own, you only have to pay one rate. You don’t even have to report it to your insurer when you purchase any new vehicle, as it will automatically be included in your policy. That can come in pretty handy, and keep you from having to bother taking the time to go out and get the new vehicle insured.

What is Broad Form Insurance?

If you are looking for inexpensive insurance coverage for multiple vehicles, this may be of interest to you. The only thing to remember is that the coverage is just liability, although in some cases other types of protection can be added. You are not able to purchase any coverage for physical damage, which is one of the reasons why this type of coverage is so inexpensive.

The Savings Will Tempt You…Be Careful

While you may be thinking that this is a great way to save money, there are some things that you need to watch out for if you are thinking about getting this type of coverage. For instance, it is only allowed in certain states, so you need to make sure that you can have it. Some states require more than the minimum amount of insurance, and since broad form is liability coverage only, it may not be enough for the state you live in.

Some other things to think about when purchasing insurance are:

  • Broad form car insurance only covers drivers who have permission to drive your vehicles. If yours is the only name on the policy, no other drivers will be insured, and if they do drive your vehicles and have an accident, they will be responsible for all damages.
  • Only those who are driving vehicles with this type of coverage are insured. Make sure that this is allowed in your state, and that you name anyone who is going to be driving your vehicles, even occasional drivers.
  • If you are at fault in an accident, vehicle repairs are not covered because you do not have the option to purchase additional comprehensive or collision coverage. Check with your insurer to make sure that your state allows this.
  • You only have the coverage that is in your policy. You will not have the option to purchase coverage for uninsured motorists or personal injury. If you do have these vehicles, you will have to purchase additional coverage.
  • This coverage cannot be used for motorcycles or recreational vehicles.
  • You cannot use this coverage if your vehicle is used for business. You will have to purchase additional commercial vehicle coverage.

On a side note, there are some insurers who will provide broad form coverage for businesses. This allows employees and others who have permission to drive company vehicles and do not have insurance coverage of their own.

While broad form car insurance is a good idea for some, it is important to weigh all of the pros and cons before you buy it. Make sure that you understand everything about the coverage you are going to receive before making any purchases. You do not want to end up paying for insurance that isn’t going to be any good to you.

Who Should Get this Coverage?

This type of coverage is not for everyone. For instance, if you are a business owner and your vehicles are used for your business, you need to get a different type of insurance policy. The ideal situation is someone who is single, lives alone, and has many vehicles. Auto collectors can benefit from broad form coverage. Just remember, if there is going to be anyone else driving, there can be no comprehensive or collision coverage added for them. If they have an accident, they are on their own as far as expenses go. Anyone who does not have a vehicle of their own but has permission to drive other vehicles should have this insurance.

Who Should Not Get this Coverage?

If you only have one or two vehicles, this is probably not going to be the best insurance option for you, especially if you want to have a lot of coverage. You also may not qualify for this insurance depending on where you live. Many states require a minimum amount of coverage, and broad form car insurance is not enough.

Why Should You Get Quotes?

Shopping for insurance is just like shopping for any big-ticket item. You need to shop around to make sure you are getting the best deals. The way to do this is by getting quotes from various insurers in your area. Then, you can take all of the information and decide which insurer is going to give you the products you need at the most reasonable rate.

  • Not every insurance company offers the same products, or the same rates.
  • Some insurance companies expect you to pay higher deductibles or premiums.
  • Make sure you use an insurer that you can contact at any time of the day or night if you have an accident.
  • Some insurers will allow you to combine other policies to get bigger discounts.

These are just a few of the reasons why you should make sure you shop around before you get your broad form car insurance. Instead of wasting a lot of time visiting or calling the various insurers in your area, you can go online and get plenty of quotes. We can do all of the work for you, and provide you with the quotes you need to make the right decision about your insurance coverage. You don’t have to provide any information except your zip code. Go online today to get the quotes you need to get the insurance you need at a price you can afford.