Understanding Broad Form Auto Insurance

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If you need insurance for your car but you don’t want to spend a lot of money on coverage, you may want to look into getting broad form auto insurance. While it is less expensive than other types of auto insurance, it is limited, and you will not have the option to buy additional coverage. Bottom line? While this is a great way to save money, it’s also something that you really need to think about.

Broad form auto insurance only covers you, and no other drivers, passengers, or anyone else if you are involved in an accident. This is one of the reasons why this type of coverage is so inexpensive. But, if you have a family, or there will be other people driving your vehicle, this may not be the type of coverage that is best for you.

Great Coverage for Individuals

broad form auto insurance

If you are a single person with no children, having broad form auto insurance may be the ideal situation for you. It’s not like you are going to have to worry about your children or family members being in your vehicle. If no one else is going to be driving, you aren’t going to need to have coverage for additional drivers. Coverage for passengers and additional drivers can get expensive, and if you don’t need to have the additional coverage, you are probably best off having broad form auto insurance.

What is Broad Form Auto Insurance?

Sometimes referred to as broad form named operator coverage, broad form auto insurance covers only the person who is named on the policy. This means that if you have broad form auto insurance for yourself, no one but yourself can make any insurance claims for damages following an accident. This type of coverage is best for single persons who live alone, and never lend their vehicles to anyone else.

Things You Need to Know

While broad form auto insurance is a great thing for many drivers, there are some things that everyone who is considering buying this type of coverage needs to know. For instance, if you have this coverage, you can never let anyone else use your vehicle. If you do, and they are involved in an accident, your insurance will not cover any damages, and that person, or yourself, will have to pay for everything. In fact, you could be sued for damages if someone is at fault in an accident while driving your vehicle. Other things you should know about broad form auto insurance include:

  • The coverage is liability only. This means that there will be no coverage for any damage that is done to your vehicle in an accident.
  • You are not restricted to one vehicle. As long as you own the vehicle, or have permission to drive it, your broad form auto insurance will cover you while you are driving that vehicle. You do not have to be listed on the owner’s policy in order to have coverage.
  • This coverage is secondary. This means that if you borrow a vehicle from someone else and they have insurance coverage, claims will be made on thatnsurance before your broad form auto insurance.
  • This coverage is not for motorcycles. Your broad form auto insurance will not cover you if you are riding a motorcycle, which requires separate coverage.
  • This coverage is not for company vehicles. If you are using a vehicle for business, you will need to have commercial vehicle insurance coverage.
  • This coverage is less expensive than other types. This is because you do not have the frills that other insurance packages offer. You just have the liability coverage you need to have your vehicle on the roads legally.

Figure Out What You Need

One of the best ways to decide if broad form auto insurance is best for you is to sit down and take a look at what you actually need for coverage. If you do drive a motorcycle, you are going to need to have insurance coverage for that. If you use a company vehicle, you will be required to have different coverage again.

If you have family members who you want to allow to use your vehicle, they will not be covered if you only have broad form coverage. These are all things that need to be considered before making your final decision and purchasing insurance. Now, if you are a single person and you only own one or two vehicles, and you are the only person who drives these vehicles, broad form auto insurance may be the best way for you to get the liability coverage you need without having to spend a lot of money.

Not to Be Mistaken with Broad Form Comprehensive Insurance

Many people think that broad form auto insurance and broad form comprehensive insurance are the same thing. When you choose the comprehensive option, you will be paying more, but you get more coverage than just basic liability for yourself. Basically, if you were to choose this option, you would have coverage for just about anything that can happen. You can ask about this before getting your coverage and then decide if you want to have this coverage.

Getting the Best Deals

It is important to make sure that you are getting the best rates on whatever type of insurance coverage you decide to go with. Every insurance company will tell you that they offer the best rates, but since no two insurers are alike, and they all have different products and rates, it is a good idea to shop around. You can do this by getting quotes from as many different insurance companies as possible. This isn’t going to cost you anything, except maybe a little bit of your time, and it will be well worth it in the long run when you are not stuck paying for high insurance premiums. All we need is your zip code, and we can get quotes from a number of insurers for you in seconds.

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