Broad Form Insurance

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Broad Form Insurance

Daniel Walker
Licensed Insurance Agent

UPDATED: Mar 27, 2020

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  2. Broad Form Auto Insurance Offers Limited Coverage

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If You Need Very Limited Coverage, Broad Form Insurance May Save You Money

For some drivers, broad form auto insurance is a way to obtain legally required coverage at a cheaper price than that of many other types of policies. It does, however, have significant limitations, so if you’re considering this type of insurance, you’ll need to understand exactly what it is broad for insurance and what it does and doesn’t cover.

Limitations of Broad Form Insurance

This type of coverage can be called broad form liability insurance coverage that covers only one driver. Because it’s liability insurance, it won’t pay anything toward repairs if your car is physically damaged.

If you’re interested in this type of coverage, the first thing to determine is whether broad form insurance is available in your state and meets the legally required minimum coverage standards. It’s only offered in a few states, including Washington.

Drivers Who May Benefit From Broad Form

Generally, because of the limited coverage it provides, broad form insurance costs less than other types of insurance. It might be a good option in the following circumstances:

No one else drives your car

A broad form insurance policy will only cover one driver, so it’s suitable only for people who never let anyone else drive their car. If you live with a spouse, children, or even a roommate, the situation could arise where they drive your car, so it’s probably best for people who are single and live alone.

If someone else drives your car, your insurance won’t cover damages if they get into an accident, but you can still be held legally responsible.

Your car is older

Broad form insurance only provides liability coverage. If you’re in an accident and it’s your fault, you won’t be covered. You also won’t be covered for weather-related damage or theft.

You don’t own a car

Even if you don’t own a car, you may occasionally drive a friend or family member’s car or drive a rental car. Broad form insurance will cover you in these cases, but as secondary insurance.

That means that if you cause an accident, claims will first be made through the insurance carried by the vehicle’s owner and then through your broad form insurance. If you regularly drive that other car, however, you won’t be covered.

You want to pay as little as possible

Each state has its own requirements for auto insurance coverage. If you don’t have the required level, you’re breaking the law when you drive, and you could face fines if you’re caught. In states that allow broad form insurance, it may be the cheapest way to keep you legally on the road.

Your car isn’t leased, and you’re not financing

If you lease or finance your car, you may be required to carry additional insurance, such as collision and comprehensive.

Drivers Who Probably Shouldn’t Buy Broad Form

Broad form insurance is usually not recommended in the following circumstances:

  • You’re a high-risk driver, such as a teenager.
  • You own a newer, more expensive car.
  • You’ll also be driving a non-traditional vehicle, such as a motorcycle or RV. You won’t be covered for these vehicles.
  • You have other people in your household who also drive your vehicle.
  • You drive a car for business use.
  • You regularly borrow a friend’s vehicle.

Broad form insurance is a very bare-bone, no-frills type of insurance. It won’t cover any other drivers, and you won’t be covered for damage to your own vehicle. If you’re interested in this type of insurance, make sure it’s legal in your state, and get a broad form auto insurance quote to find the best rate. Just make sure that you understand its limitations and that it’s right for your particular situation.


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