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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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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Reviewed by Daniel Walker
Licensed Car Insurance Agent for 15 Years

UPDATED: May 12, 2021

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While it is important to understand any type of insurance coverage before buying a policy, this is especially true when it comes to understanding broad form auto insurance. Unfortunately, broad form insurance can be very confusing, very limiting, and in some cases, it may not be enough.

That being said, we’re digging into some things anyone considering this form of insurance needs to know. You can always begin comparing quotes by entering your zip code into our free car insurance comparison tool.

Is Broad Form Insurance Available and Legal in Your State?

Buy Broad Form Auto Insurance Before purchasing broad form auto insurance, it is important to know about the insurance requirements in your state, which can affect your ability to carry this type of coverage. Here are some reasons why you may or may not be able to use this insurance:

  • It may not satisfy all of the legal minimum requirements for the state you live in.
  • It is not available in every state.
  • States that currently allow broad form insurance are reviewing the specifics of the policies to determine if they are legally allowable or not.

Other Reasons Why Broad Form Insurance May Not Work for You

In addition to not meeting minimum insurance requirements in some states, broad form insurance has a number of other factors that may make it less than ideal for your needs:

  • It should not be used if there is more than one legal, licensed driver in the house
  • It should not be used by someone who frequently allows other drivers to borrow their vehicle
  • It should not be used as a primary coverage on an expensive car
  • It should not be used by a high-risk driver

Needless to say, it’s important to understand the ins and outs of broad form insurance. Keep reading as we dive into more of the specifics behind this coverage.

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Why Broad Form Insurance Can Be Appealing in Some Cases

Maybe you’re the type who hardly gets behind the wheel, as you prefer to go biking or channel your mental energy into running. Or, maybe your car is already paid off and isn’t worth a lot. They’re just a few of the reasons that broad form insurance can be appealing:

  • It’s typically very inexpensive limited liability insurance
  • It restricts insurance coverage to only the named operator on the policy
  • Additional insurance coverage can be added to this policy, with some restrictions
  • It’s perfect for cars that are paid off and of lower value
  • It restricts the types of events that are covered

Beyond the Basics of Broad Form Insurance

In addition to lower-cost limited liability broad form insurance, you may also want to consider comprehensive broad form insurance. Some main differences to consider:

  • This type of broad form insurance tends to be very expensive in comparison to other types of coverage.
  • It offers more coverage for more events than limited liability broad form insurance.

Both types provide coverage for the stated driver in any car that he or she is legally driving, no matter who the owner might be. However, if there is an accident or loss, the owner’s insurance will cover the costs and the broad form insurance will become a secondary coverage only if it is needed.

Warnings if You Use Broad Form Insurance

If you plan to pursue broad form insurance (provided that it is offered in your state), there are some things to keep in mind:

  • Comprehensive broad form insurance, in addition to being very expensive, carries a deductible.
  • If you do allow someone to drive your car at any point and there is an accident, you can be sued.

Now that you have a better understanding of how to make sense of broad form insurance and whether it’s right for you, your next logical step will be in comparing quotes. Start now by entering your zip code in our free broad form insurance comparison tool.