We need to choose our car insurance wisely. Spending money on car insurance that may be of no use to the owner is a waste of money. For such individuals who want to save money and buy cheap car insurance, the broad form auto insurance is the best option.
Never be Fooled!
There are so many types of coverage and policies available to the customer these days that most of them get confused and sometimes end up paying the unnecessary high amount to the insurance companies. The slight variations on the basic policies make them costlier than ever. The customer gets be-fooled by their marketing tricks and falls into the trap of such policy makers.
What is Broad Form Auto Insurance?
Broad form car insurance often termed as broad form named operator coverage, gives protection to only the “named operator” i.e. the one in whose name the policy is taken. For example, if you own a car and purchase broad form coverage for your vehicle, then only you will get the benefits from the policy in case of any accident or mishap. While at the same time if your friend borrowed your car and cause accident, he or she will not get any coverage. They will have to spend on the repair of the car as well their own medical bills.
This policy is best for someone who is single, living alone and doesn’t share his or her vehicle with the others often.
This is the basic definition of broad form policy. There are certain other key points that one must learn so that they can make a sound decision about what policy to buy for their car insurance.
Some of the important points are
- The biggest benefit of this policy is that once you have the policy in your name, you can drive any vehicle under risk coverage. You do not have to stay bound to one vehicle only.
- If you are driving a borrowed car that already has the basic car insurance coverage, then in case of an accident, the basic car insurance policy claims will be allowed on priority basis even if you own broad form auto insurance. It means this policy comes as secondary in priority as compared to other car insurances.
- This policy is cheaper than other insurance coverage policies. Thus a single driver who does not want to spend too much money on insurance coverage can claim benefits from this policy in case of a mishap or accident.
- This policy doesn’t give coverage to the motorcycles, bikes or heavy trucks.
- The policy doesn’t cover the business vehicles too. If you are driving a company car, then as per guidelines you need to buy a separate commercial auto insurance coverage.
Considering the above-mentioned points, it must be clear now that what is broad form car insurance all about!
Learn more about comprehensive auto insurance here.
Which Policy is Best for You?
Although one can always buy car insurance with no credit check at viable prices, the broad form insurance policy has its own benefits too. The best way to decide is to sit down and make a comparison analysis chart. You can enlist your needs, priorities, and preferences and thus decide which policy suits the best to your requirements.
The Bottom Line
Undoubtedly, the broad form policy is cheaper than other policies but if you want to take the insurance for your family’s safety, it is better to buy a normal insurance policy. While at the same time, if you know that your job demands to drive different vehicles every day or so often, then broad form policy is the one for you! In such situation, you can even consider buying both the policies too, the normal insurance coverage for your own car and the broad form policy for work based driving needs.
The final decision should be made by the customers on the basis of their priorities and financial obligations.