Cheap Broad Form Insurance
Broad form insurance coverage is the simplest type of auto insurance; it doesn’t meet the minimum insurance requirement for most states. Drivers can find online broad form insurance quotes for Colorado, Washington and the remaining nine states that accept this coverage. Broad form insurance can also refer to home and business policies, though the details are different.
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UPDATED: Aug 17, 2021
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- The term “broad form insurance” means different things depending on what type of insurance it is referencing
- Broad form auto insurance refers to a minimum policy for one driver
- The broad form is the next level of security above basic business/home insurance
If you think your auto insurance extends outside your needs, perhaps it’s time to compare broad form auto insurance quotes with your current policy.
What is broadform insurance? “Broad form” refers to varying levels of insurance. Depending on the type, it’s either the lowest or most comprehensive coverage. For auto policies, it is the most basic type of insurance.
However, not every state or company allows drivers to buy broad form auto insurance. Keep reading for more on understanding broad form insurance rates, types, and drawbacks. We also have an easy auto insurance guide.
If you are ready to compare affordable broad form auto insurance, use our free tool to speak to a local agent. Enter your ZIP code to get started.
What does broad form auto insurance cover?
Broad form auto insurance is a basic liability policy for a sole driver. Anyone else who drives a vehicle under broad form insurance alone is not included in the policy.
This is the most basic level of auto insurance and only protects the other driver when the policyholder is in an accident.
Broad form insurance does not cover:
- Non-collision damages to your car (think vandalism, weather incidents, etc.)
- Damages caused to your vehicle by another vehicle, i.e. collision insurance
- Personal injuries
- Uninsured motorists
- Damages caused by someone else driving your car
In most states, broad form auto insurance doesn’t meet the minimum coverage required to drive. The states you can purchase broad form auto insurance are:
The term “broad” may be confusing when you’re shopping around for insurance. Firstly, there’s an extensive policy called broad collision coverage — which is more expensive.
Also, there is a broad form option for home and business insurance. Keep reading to learn more.
Other Types of Broad Form Insurance
Depending on what type of broad form insurance company you’re looking into, you may find that other “broad form” coverage types are more comprehensive.
For example, broad form homeowners insurance is one level up from basic coverage. Basic homeowners insurance covers standard perils that homeowners face.
This includes weather damage to a house or falling objects in the home. Broad form home insurance rates take these perils into consideration, but it also covers other situations (like theft).
Broad form business insurance, similarly, covers damages outside basic liability.
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Pros and Cons of Broad Form Insurance
Finding the most affordable broad form insurance rates will depend on where you live. However, your insurance needs will also have an impact on the overall cost.
The largest benefit of broad form insurance is its affordability. Auto insurance rates are determined by several factors, including driving history, age, and where you live. The Insurance Information Institute made an easy guide to help drivers learn what they need.
To get an idea of how different levels of coverage impact auto insurance rates, check out the table below.
|Coverage Types||Average Annual Coverage Rates||Average Monthly Coverage Rates|
While it may be a cheap alternative in terms of coverage, broad form insurance does not allow you to add or purchase comprehensive or collision coverage. Drivers usually use broad form insurance as supplemental coverage.
Broad form insurance is also good for those driving beaters or who frequently borrow vehicles from friends.
How much cheaper is broad form insurance than a standard policy?
Again, however, this basic auto insurance option is not offered in every state. Broad form insurance is also commonly purchased as additional coverage. That said, broad form saves drivers hundreds of dollars a year.
When comparing the most basic liability coverage from nationwide providers, drivers can save anywhere from $300 to $500 per year on insurance costs.
Broad Form Insurance: The Bottom Line
Broad form auto insurance is an option for drivers looking to spend the minimum on coverage. Not to be confused with a broad comprehensive insurance package, standard broad form insurance only covers liability for one driver.
Broad form auto insurance is also substantially cheaper than comprehensive policies but isn’t always accepted by itself. This type of insurance is good for people who need additional liability coverage or are often driving other’s vehicles.
Now that you’ve learned more about broad form insurance, see if it’s offered in your state. Enter your ZIP code to connect with a local auto insurance company.