What is broad form auto insurance?
What is broad form auto insurance?
Every year, paying for auto insurance might seem burdensome to your pocket. You need money for many utilities, so you’re on the lookout for cheaper insurance alternatives. You hear about broad form insurance and how it can save you a lot of cash. However, what is broad form auto insurance, and is it as inexpensive as you’ve heard? Let’s find out here.
Broad form insurance is also known as broad form named operator coverage. This insurance might seem misleading at first glance as it covers only the barest minimum and nothing “broad,” as the name implies. This type of insurance offers little coverage at the lowest rate. This means if you’re ever in an accident, injuries to passengers and damages to your vehicle will be your responsibility and not that of the insurance company. With broad form insurance coverage, only the registered driver has minimum liability coverage. But most drivers get this coverage as a minimum auto insurance requirement in their state.
If you get broad form insurance, you’re not obligated to pay for any damages on behalf of your family members or anyone else driving your car during an accident. If you crash into another driver during an accident, you’ll only get coverage for the other driver’s car and bodily injuries. But your broad form insurance won’t cover the cost of your injuries if you sustained any from the accident. However, due to the minimal coverage this insurance type provides, it is only approved in 11 states and not available for just any driver looking to cut costs.
What Broad Form Insurance Doesn’t Cover?
Broad form insurance might seem cheap, but if you happen to be in an accident, this insurance doesn’t pay for your car’s damage or your co – passenger’s injuries, it only covers you. You’ll have to pay out of pocket for all these, which can wreck you financially. With broad form insurance you won’t be able to buy a collision or comprehensive coverage. Moreover, if your significant other or relative drives your car, they’re left at risk behind the wheels if anything happens on the road.
What Are Some Benefits of Broad Form Insurance?
If you’re a solo driver of your car and are concerned about saving money, then broad form insurance might be best for you. You can cut down on the premium payments of full coverage and also meet your state’s minimum liability requirements to drive legally. Moreover, broad form auto insurance allows you to purchase personal injury protection (PIP) and uninsured motorist coverage if needed, which can help to cover medical costs during an accident.
Who Should Get Broad Form Auto Insurance?
Broad form insurance, despite its shortcomings, is still suitable for some people. Below are some individuals that might consider broad form insurance.
- Drivers who don’t allow anyone else to drive their car
- Drivers who drive cars that don’t belong to them
- Drivers who own low-value or older cars
- Drivers without dependents or children
- Drivers who need cheap minimum liability insurance
How Much Am I Saving on Broad Form Insurance?
To know the exact amount you’ll be saving by switching to broad form insurance, you’ll need to compare the cost of full coverage in your state with that of broad form insurance. Most insurance providers charge around $1,800 to $3,500 for full coverage and $700 to $1,300 for minimum liability coverage. Broad form insurance can save you about $1,500 a year, but that’s because it doesn’t offer comprehensive and collision coverage. Therefore, it’s always way cheaper than full coverage. But is it worth it? You have to decide based on its benefits, limitations, your budget, and lifestyle.
Is Getting a Broad Form Insurance a good idea?
To benefit from broad form insurance, you must be confident of staying out of any road crashes. Nevertheless, how many people can drive all year without getting into minor road troubles? You’re also at risk with broad form insurance when you ride other automobiles like motorcycles and commercial trucks. Although some states offer broad form insurance for motorcycles, you’re still better off with a full coverage. Again, broad form insurance doesn’t cover company cars, uninsured or underinsured motorists, and it doesn’t offer comprehensive or collision coverage. Therefore, it puts you at financial risk in case of an accident.
How to Get Broad Form Insurance Coverage?
After checking the pros and cons of broad form insurance coverage, if you still decide to go for it, then you need to reach out to different insurance providers and ask for quotes. However, make sure that broad form insurance is approved in your state before making calls to insurance providers and shopping for quotes. Sometimes, you have the liberty of getting an estimate online with quoting tools readily available on the insurer’s website. You can speak to an agent if you’re not satisfied with what’s on the insurance company’s webpage. Then you can compare quotes from different insurers to make a final decision on what suits you best. Always look for reputable companies that can give value to your money, then finalize the policy.
Switching to broad form insurance can be good for your pocket but bad for you. It is okay to find ways to pay less for insurance but always double-check before changing your coverage. Contact an agent in your area to help you decide on the best auto insurance for you. Remember that having the required auto insurance coverage will help you save from financial damage in case of an accident.
