What Is Broad Form Insurance Coverage? – ValuePenguin

Broad form car insurance is a cheaper option when it comes to car coverage, as it only covers one driver with minimum liability coverage. this means coverage is excluded for anyone else operating your car. Due to this level of risk, this type of coverage is only available in certain states.

Our guide will help you better understand insurance broadly to determine if it’s the best coverage option for you.

Reading: What is a broad form auto insurance policy

what is insurance broadly?

While the term “wide format” may sound like a wide range of coverage, it’s actually quite the opposite. Broad form insurance, often referred to as broad form designated operator insurance, is a type of basic liability coverage that may meet your state’s minimum liability requirements for auto insurance.

Only the driver’s liability costs are covered by this type of policy. the broad form may appeal to people who want to pay as little as possible for car insurance and only need to cover their own liability and not that of any family member.

However, insurance may not be widely available to all drivers looking for affordable coverage. It is currently only licensed in a few states, one of which is Washington. certain conditions apply when it comes to what is broadly covered by insurance.

what does broad format auto insurance cover?

Comprehensive form insurance is an affordable way to purchase liability coverage, which pays to insure you as the driver. however, the broad form has an important distinction. Unlike most liability coverages, which allow you to add multiple drivers on one policy, the broad form will only cover one licensed driver on the policy.

This policy will exclude any driver operating your vehicle other than the designated driver on the policy. Because of this, broad coverage is best for drivers who don’t let anyone else drive their car.

If you own or drive multiple cars, you don’t have to pay for additional vehicles under your comprehensive policy. But if you don’t own a car, non-owner auto insurance is a better option. Since you need to carry some form of liability coverage in most states, a comprehensive liability insurance policy can offer an affordable coverage option, especially for single-car owners.

should i get insurance broadly?

When deciding if comprehensive insurance coverage is right for you, factors to consider include:

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We recommend comprehensive coverage for those looking for affordable insurance, owning a low-priced car, or driving other vehicles they don’t own.

advantages of choosing a wide coverage

In effect, the broad form is the same as liability coverage with only one driver on the policy. Because of this, you can save a considerable amount of money on your monthly premium. Unlike standard liability coverage, family members cannot be added to your policy on a broad basis.

If no one else will be driving your vehicle, you won’t need additional driver coverage. Providing coverage for additional drivers and passengers can be expensive, so comprehensive form insurance could be an inexpensive solution.

Although not offered in all states, this coverage can help you meet the minimum liability requirements to drive legally in states like Washington. This type of coverage may be ideal for drivers who:

How much cheaper is comprehensive insurance than a standard policy?

Drivers could save an average of $1,500 per year by choosing comprehensive insurance instead of comprehensive coverage. Unlike broad form policies, comprehensive coverage includes comprehensive and collision coverage and higher liability limits. But there is some level of risk in choosing coverage broadly, since the insurance company is only responsible for the driver on the policy.

Next, we use the cost of minimum liability insurance for one driver and one vehicle as a substitute for broad form insurance, since the rates are similar, but broad form policies can be even cheaper than insurance policies. minimum liability.

minimum liability costs vs. full coverage for major insurers

Our insurance quotes are based on one driver, so in this case our minimum liability coverage is used in lieu of insurance broadly. our sample driver is a 30 year old male who drives a 2015 honda civic ex. state farm offers the cheapest minimum coverage at $712 per year, while geico charges about $100 more per year for the same type of coverage.

insurance drawbacks broadly

While it may be an affordable alternative in terms of coverage, comprehensive form insurance will not allow you to add or purchase comprehensive or collision coverage.

therefore, if you are at fault in an accident, damage to your vehicle or passengers will be your sole responsibility, not the insurance company’s. If your car ends up being totaled, you will not receive any type of payment through your insurer.

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However, insurance broadly allows drivers to purchase personal injury protection (pip) and uninsured motorist coverage if needed, which may cover certain medical expenses if you are involved in an accident.

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If you don’t own a car and frequently drive someone else’s vehicle, coverage will broadly be considered secondary insurance. In other words, if the vehicle owner has insurance coverage, insurance claims will be made on their primary insurance rather than their auto insurance broadly.

Broad form insurance does not cover company-owned vehicles or those operating a motorcycle or recreational vehicle, although some states offer broad form insurance specifically for motorcycles. Auto insurance broadly isn’t the best option for everyone, especially if you own a newer vehicle or drive frequently with family or other passengers.

Is broad coverage worth it?

Car insurance broadly is the most basic coverage option for car owners and drivers. broad form coverage is better for drivers than:

However, if you need to include multiple family members on your policy or if you own a newer vehicle, you may want to consider other types of coverage. Ultimately, the choice is up to you on how much money you want to spend on protection. Consider your financial situation and whether you have enough savings to personally cover damage to your vehicle in the event of an at-fault accident.

methodology

Our sample driver was a 30 year old male driving a 2015 honda civic ex with no available credit history. this is equivalent to a driver with fair to bad credit, according to data from Quadrant Information Services. all auto insurance quotes evaluated from all available zip codes within each state.

The comprehensive coverage policy for our sample driver has coverage limits slightly higher than the minimum requirements of any particular state.

full coverage policy

Note that broad format insurance quotes were not readily available, and minimum coverage quotes were used instead, as insurance quotes for a single driver were found. Our auto insurance rates for minimum coverage policies represent the average cost of a policy that meets the state’s minimum requirements for auto coverage. broad form insurance is only offered in select states.

valuepenguin’s analysis used insurance rate data from quadrant information services. These rates were obtained publicly from insurer filings and should be used for comparison purposes only; your own quotes may be different.

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