Broad Form Insurance Coverage

Broad form insurance isn’t available in every state, but where it is offered, it’s one of the cheapest forms of auto insurance. This affordability makes it attractive to most drivers, but it may not actually be the kind of coverage you need.

Before you learn more about broad form auto insurance or consider buying broad form insurance from Progressive or another provider, enter your ZIP code to compare the best cheap auto insurance rates from local companies near you.

What is broad form insurance?

Broad form auto insurance is liability insurance coverage that follows you as the driver. This means you’re protected no matter what car you’re in, whether you own it or not.

Compared to most other forms of insurance, broad form coverage is much cheaper on a monthly basis. But it’s not available in every state.

What are the limitations of broad form insurance?

Broad form insurance may be cheaper, but that comes at a different cost. Broad form coverage doesn’t extend to any vehicles at all. If you’re at-fault in an accident, you won’t be covered for any vehicle repairs.

Likewise, if a friend borrows your car and is at-fault in an accident, your car doesn’t have any coverage to pay for damages.

On top of that, broad form insurance is only liability insurance. While it covers you, as the driver, it doesn’t extend to passengers in your vehicle like full coverage auto insurance. If someone you drive around is injured in an accident where you’re at fault, you may be liable for their medical bills.

It’s also important to note that broad form insurance doesn’t extend to non-traditional vehicles. Non-traditional vehicles include things like RVs and motorcycles.

Broad form insurance also doesn’t apply if you’re driving a company car.

Major limitations of broad form coverage:

• Your vehicle isn’t covered in an accident where you are at-fault
• If you lend your vehicle to a friend, it won’t be covered in an accident where they are at-fault
• Your coverage only extends to you as a driver, so any passengers in your vehicle won’t be covered
• Broad form insurance may not meet state minimum liability coverage requirements
• Some insurance companies won’t offer broad form insurance because of its limited scope
• Broad form insurance is considered secondary, so if you’re in an accident in a vehicle that you don’t own, the vehicle owner’s primary insurance will kick in before your broad form insurance does
• If you drive a vehicle that you don’t own on a regular basis, you’ll need to be added to that vehicle owner’s insurance, as your broad form insurance doesn’t cover regular use
• Broad form insurance only applies to one legal, licensed driver per household, so if you live with a partner, they wouldn’t be able to also have this form of coverage
• If you want to buy or lease a new vehicle, you may need full coverage to qualify for financing from most lenders.

Some states, like Michigan, have additional restrictions in their insurance code for broad form coverage

Who should get broad form insurance?

Though broad form insurance is definitely cheaper, it isn’t for everyone.

High-risk drivers, for example, who are more likely to get into an at-fault accident, may soon be responsible for costly medical bills and vehicle repairs that their broad form insurance won’t cover.

There are some situations where broad form insurance does make the most sense:

• If you never have passengers when you drive, you may not need to pay for coverage for additional passengers
• If you are the sole driver of your vehicle, you probably don’t need to pay for coverage for other drivers
• If you don’t own a vehicle, but still drive other vehicles, broad form insurance might meet the minimum requirements of your state and save you money
• Though most forms of insurance cover rental vehicles, if yours does not, you may want to add broad form insurance to ensure you’re covered while driving rentals
• If broad form insurance meets your state’s minimum requirements and you don’t drive all that often, less coverage might save you money
• If your vehicle is older and unlikely to qualify for repairs in an accident, broad form insurance may save you money on your monthly insurance bill

So, though broad form insurance can save you money on your monthly insurance bill, it also may end up costing you thousands in medical bills and vehicle repairs down the road.

If you’re looking to save on auto insurance, enter your ZIP code now to start comparing the cheapest auto insurance quotes from local companies.

Case Studies: Broad Form Insurance Coverage

Case Study 1: Limited Vehicle Coverage

A driver with broad form insurance was involved in an at-fault accident while driving their friend’s car. Unfortunately, broad form insurance only covers the driver and not the vehicle. As a result, the driver had to personally bear the costs of repairing their friend’s car, leading to significant financial burden. This case demonstrates the limitations of broad form insurance when it comes to vehicle damage coverage.

Case Study 2: Passenger Injury Liability

In another case, a driver with broad form insurance caused an accident that resulted in injuries to their passengers. Despite having liability coverage, the driver’s broad form insurance did not extend to cover the medical expenses of the injured passengers.

As a result, the driver was held personally liable for the passengers’ medical bills and faced financial strain. This case highlights the importance of considering the potential liability for passenger injuries when choosing insurance coverage.

Case Study 3: Non-Traditional Vehicle Exclusion

A driver with broad form insurance decided to take their motorcycle for a ride. However, when they got into an accident, they realized that their broad form insurance did not provide coverage for non-traditional vehicles like motorcycles. The driver had to bear the costs of their own injuries and motorcycle repairs, emphasizing the limitations of broad form insurance for certain types of vehicles.