What is broad form insurance, and what does it cover?


Broad form insurance differs from other types of car insurance since it covers one person rather than a vehicle. It generally provides only minimum liability coverage, so while broad form car insurance is affordable, it is unlikely to provide the best coverage in an accident. Broad form insurance companies can only be found in 11 states.

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Written by
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Reviewed by
Licensed Auto Insurance Agent
UPDATED: 2021-10-15T20:31:01.892Z
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What You Should Know

  • Broad form insurance only covers one individual whose name is indicated on the policy
  • Broad form insurance is available in eleven states, including Washington
  • Broad form insurance is best for those drivers who don't allow other people to drive their cars
  • Broad form insurance only covers bodily injury and property damage to other people and their property that was caused by the driver whose details are present in the policy

Broad form insurance is a type of cheap car insurance that covers only one driver with minimum liability. This means that other people who operate your car are excluded from the broad form insurance policy.

Due to these high levels of risks, broad form car insurance is only accessible in a few states. While you can get broad form insurance even if you don't own a car for when you drive someone's car occasionally, non-owner car insurance may be better.

Continue reading this broad form insurance review to understand broad form insurance and decide if it can be the coverage option you would like to have.

Then enter your ZIP code in the free quote comparison tool below to help you identify the best broad form car insurance companies in your area.

What is broad form insurance?

The term "broad form" seems to be indicating wide coverage. However, this is the opposite because it offers limited coverage. Broad form auto insurance only covers minimum liability insurance for one driver, rather than the driver’s vehicle.

The policy will only cover damage caused to other people’s property, as well as their injuries if it is caused by the driver on the broad form policy.

Broad form insurance is an example of basic liability coverage that is needed by most state laws. It is better for those drivers who don't allow other people to drive their cars.

Broad form insurance is a unique type of policy because it also applies to any other vehicle that the policyholder drives. This means that you pay the same amount of premiums no matter the number of cars you own.

You should note that broad form insurance does not cover company cars, commercial vehicles, or motorcycles. It only covers a personal vehicle.

Broad form insurance is better for those who want to pay as little as they can for car insurance and only want to cover their liability and not the liability of their loved ones.

However, broad form insurance may not be accessible to all drivers who wish to purchase cheap car insurance.

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What does broad form insurance cover?

Unlike other types of liability coverage, which covers several drivers on a single policy, broad form auto insurance will only cover one driver, and the driver must be licensed.

It only covers bodily injury and liability damages for other people. Broad form insurance coverage will exclude any other driver involved in the accident whose name is not indicated in the policy. It only covers the minimum liabilities for only a single driver registered in the policy.

Due to this, broad form insurance coverage is better for those drivers who don't allow other drivers to use their vehicle, since they wouldn’t be covered in an accident.

Broad form insurance coverage doesn't cover non-collision damages like weather and nature, vandalism, and theft. In addition, it does don't cover personal injury, collision for underinsured or uninsured motorists, and other individuals driving your vehicle.

Broad form insurance will cover you even if you drive or own multiple cars.

How much is broad form insurance?

Broad form car insurance rates are different in each state that offers it. Full coverage, unlike broad form plans, provides comprehensive and collision coverage as well as greater liability limits.

When selecting broad form insurance, there is more risk for the insurance company since the insurance provider is solely liable for the driver listed on the policy.

State Average Cost of Minimum Liability per Year
Alabama $469
Alaska $373
Arizona $555
Arkansas $470
California $733
Colorado $518
Connecticut $794
Delaware $787
Florida $1,101
Georgia $756
Hawaii $354
Idaho $307
Illinois $442
Indiana $367
Iowa $252
Kansas $410
Kentucky $748
Louisiana $975
Maine $294
Maryland $767
Massachusetts $510
Michigan $948
Minnesota $537
Mississippi $492
Missouri $468
Montana $342
Nebraska $335
Nevada $860
New Hampshire $389
New Jersey $847
New Mexico $385
New York $1,062
North Carolina $413
North Dakota $285
Ohio $328
Oklahoma $423
Oregon $610
Pennsylvania $427
Rhode Island $749
South Carolina $558
South Dakota $275
Tennessee $371
Texas $524
Utah $528
Vermont $292
Virginia $441
Washington $463
Washington, D.C. $704
West Virginia $458
Wisconsin $332
Wyoming $271

In the table above, we’ve listed the rates to meet the minimum liability coverage in each state. The price for minimum liability is likely similar to the cost of broad form auto insurance, although broad form plans may differ.

Where can I find a broad form car insurance company?

Broad form insurance companies are only allowed in eleven states: Washington, Tennessee, Nevada, Mississippi, Ohio, Colorado, Maryland, Idaho, Delaware, Nebraska, and Iowa. Many states don't offer it because it only covers one person.

Finding broad form insurance companies can be more difficult than standard insurance. To get a broad form insurance quote, you may want to contact a car insurance agent in your area.

Should I buy broad form car insurance?

If you want to decide whether broad form insurance is the best coverage for you, you should consider several factors like:

• What benefits does broad form insurance have over other coverage? • Are there any disadvantages with broad form insurance? • Is broad form insurance the cheapest policy that you can afford?

Broad form insurance may be an option if your main concern is to get cheap insurance, your car is of low value, you have the financial ability to pay for high out-of-pocket expenses, you never carry passengers in your vehicle, or you never drive other people's cars.

In addition, you should ensure that broad form insurance is available in your state. In states where it is offered, it can assist you in achieving minimum liability requirements for you to drive legally in states like Washington.

Broad form insurance is significantly cheaper, and this will help you save a lot of money on monthly premiums. Drivers who choose broad form insurance over full coverage can save around $1,500 per year.

If you are sure that no other person will drive your car, there is no need to incur extra costs to cover other drivers. Providing coverage for additional drivers can be expensive.

However, if you share your car with other drivers, broad form car insurance is not the best type of insurance for you.

If you own a new car or want to put your loved ones into consideration when insuring your car, broad form insurance is not worth it.

Consider your financial potential if you are in a position to pay for the damage if your vehicle is involved in an accident before buying broad form insurance.

Get affordable broad form car insurance quotes by entering your ZIP code in our free quote comparison tool below.

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