Broad form auto insurance is one of the options you have when you are looking for decent car insurance coverage at the lowest price. Even though it has some limitations when it comes to coverage, this type of insurance is still one of the most popular options, mainly because it is suitable for many people.
No matter how much life insurance you have, when you are looking for car insurance make sure you learn how it actually works, what are their advantages and limitations and how you can get an affordable policy in your current situation.
What is Broad Form Insurance Coverage?
Broad form insurance is also called broad form named operator coverage, and it is one of the car insurance policies that only cover the policyholder, a person whose name is on the policy. This is one of the biggest limitations of the policy, as it is not suitable for people with families.
As broad form auto insurance covers only one person, it actually means that if you are a policyholder and you have an accident with other people in the car, you will be the only person in the vehicle that would be covered. Therefore, it doesn’t come as a surprise that this type of car insurance coverage is more suitable for people who live alone, who usually drive their car alone, and the ones that never lend their car to other people.
Keep in mind that this car insurance is not available everywhere. Therefore, before you consider it, make sure you check if the car insurance is available in your state. Sometimes it is not available, and sometimes you will not be able to enjoy the full benefits of this type of car insurance policy.
When is Broad Form car Insurance a Suitable Option?
Not every car insurance suits to everybody. Therefore, if you are single and you usually don’t take on any passengers, this type of car insurance is perfect for your current situation. However, you can always upgrade it when your situation changes.
This type of car insurance is usually cheap, and if you think that it will suit your needs, do not hesitate to get one. If you are alright to all its limitations, broad form car insurance coverage is the one for you.
What are the Main Limitations and Advantages of Broad Form Auto Insurance?
We mentioned that this type of car insurance is usually cheap, which is its biggest advantage. However, not being able to protect other people that may be in the car with you is a limitation that needs to be observed.
As mentioned above, the only person that is covered with broad form auto insurance is a policyholder. Therefore, you shouldn’t have any passengers in the car with you. Why is that? If you happen to have an accident while you are driving another person in your car, and that person doesn’t have their own insurance and you both get injured, this person can sue you.
You also shouldn’t lend your car to anybody that doesn’t have their own insurance coverage. Why is that? If you borrow your car to someone, they will not be covered in case you own a broad form insurance coverage. Therefore, this person would be committing a violation of state law.
And also, if it the accident happens while this person is driving your car without their own insurance, they will be responsible for any damages and injuries that they have caused. Plus, you could be legally responsible for any damages caused while this person was driving your car.
However, if you happen to borrow a car from somebody, your broad form auto insurance will cover you as long as you own the vehicle or if you have a driver license, even if the vehicle you are driving doesn’t have other insurance on itself. This is called multiple-vehicle coverage.
However, if you borrow a car with insurance that is covering this vehicle, your broad form auto insurance will be secondary. This means that any type of coverage that exist on the car you are borrowing, it would be the primary coverage to your coverage.
Types of Broad Form Car Insurance
When it comes to liability version of broad form car insurance, a policy will cover all the damage that is done to your vehicle by another driver only. This means that any damaged that is caused to your car by you or in any other situation except the one in which the damage is caused by the other driver, will not be covered with this type of car insurance. This shows that there is only one case in which you would receive any compensation for damage that was inflicted to your car.
Even though we mentioned that it will cover you whenever you are driving the car, broad form auto insurance is not valid in a situation where you are driving a company vehicle. Same goes for motorcycle, as it requires its own separate form of coverage. On the other hand, a company vehicle must have commercial vehicle insurance coverage. Therefore, even if you are protected in many situations when you have broad form auto insurance, you have to take care what type of vehicle you are borrowing.
When it comes to Broad Form Comprehensive Auto Insurance, it is more expensive than the liability version and therefore it is less popular. However, there are advantages that should be revised.
Learn more about comprehensive auto insurance here.
When it comes to this type of broad form insurance, it covers the damage to the vehicle itself even if you were the cause of the accident, which is a great plus. This makes borrowing a vehicle much easier even if there is no insurance coverage on the car itself. In this case, whatever happens, you know that the vehicle itself will be protected.
However, it should be noted that this form of insurance does not cover anyone else, just like the liability version.
Is Broad Form Insurance a suitable option?
Before you choose any type of car insurance, first be sure that it fits your needs. Maybe you will be attracted to some deals just because they are cheap or more affordable than others, but it doesn’t mean that it will be the best option for you.
Sometimes it can happen that even if you choose cheap coverage if it doesn’t fit you it may even cost you more money in the long run.
Car insurance coverage should cover only things that need to be covered. Any less or more than that will cost you more money. Therefore, if you are seriously thinking about broad form car insurance, you have to know that you can’t carry passengers or loan out your vehicle to others. And on top of that, you can’t drive company’s car and motorcycle as you won’t be covered in those situations.
Therefore, you should sit down and decide if the policy you want is really the best option for you. Make sure it fits your needs and your pocket before you actually buy it. Remember that you should be able to obtain the policy and pay your monthly bills on time to prevent any possibility of policy cancellation.
Think about its advantages and limitations and decide if these things are something that you can agree on. If you are not sure if you should buy this kind of car insurance, think well before you decide.
How to get the best deal?
When you decide that broad form auto policy is right for you, choosing the good insurance company is the next step. There are a great number of insurers that offer affordable deals in your current situation. But what you should be looking for an insurance company is the best combination of coverage and price.
The only way to make sure you got the best deal is to get free online quotes from different insurance companies. The next and very important step is to compare the quote and choose the one that is best for your current situation. However, keep in mind that you are locking the price only by buying the policy, which means that quotes change with time and the more you wait for the bigger the chance that the price of the policy will be higher. This is the only way to get the best deal.
However, keep in mind that you will need some time in order to make a detailed research. Therefore, if you think that you will not have the time for that, or you don’t want or you are not able to wait any longer, you should ask advice from us. This kind of professional will save your time and guarantee you that you will get the best deal when it comes to broad form car insurance.
So, if you started looking for broad form coverage, be sure to take the time to shop around before you decide. Look around and get the best quotes from different insurers. This way you will get the best possible deal and you will pay less for your insurance.