How Much Does Broad Form Auto Insurance Cost? Everything You Need To Know

Broad form insurance is a type of minimal auto insurance coverage. It provides liability protection for the named insured driver while operating a personal vehicle.

With broad form insurance being such a limited form of coverage, drivers considering this option may wonder – how much is broad form insurance?

This article will provide a comprehensive overview of broad form insurance, including:

• What is broad form insurance?
• What does broad form insurance cover?
• What does broad form insurance NOT cover?
• Who should consider broad form insurance?
• In which states is broad form insurance available?
• How much does broad form insurance cost?
• How broad form insurance costs compare to standard policies
• Tips for getting cheap broad form insurance quotes
• Is broad form insurance a good choice for you?

What Is Broad Form Insurance?

Broad form insurance, sometimes called broad form named operator coverage, is an extremely bare-bones auto insurance policy. It provides minimal liability protection for one named driver when operating a personal passenger vehicle.

Broad form policies only cover:

• Bodily injury liability – covers injuries to other people caused by the named insured driver
• Property damage liability – covers damage to other people’s property caused by the named insured driver

Unlike standard auto policies, broad form insurance does NOT provide comprehensive or collision coverage. There is also no coverage for damage to the insured’s own vehicle.

What Does Broad Form Insurance NOT Cover?

It’s important to understand the significant gaps in broad form auto insurance coverage. Broad form policies do NOT include:

• Collision – Damage to your vehicle from an accident
• Comprehensive – Damage to your vehicle from theft, vandalism, weather, fire, etc.
• Uninsured/Underinsured Motorist – Coverage if you’re hit by an uninsured or underinsured driver
• Medical Payments – Coverage for injuries to you or your passengers
• Rental Car Reimbursement – Payment for a rental car if your vehicle is in the shop
• Roadside Assistance – Towing or on-site repairs if your car breaks down

Broad form insurance only covers liability for the named insured driver. There is no coverage for other drivers of the vehicle or for vehicle damage.

Who Should Consider Broad Form Insurance?

Due to the limitations, broad form insurance is not a good choice for most drivers. However, it may make sense for:

• Someone who already has coverage under another policy but wants extra liability protection
• Occasional drivers of vehicles they don’t own
• Owners of very low value vehicles

In these cases, the low cost of broad form insurance can provide useful supplementary coverage. But drivers should be aware of the coverage gaps and prepared to pay out-of-pocket for any uninsured losses.

In Which States is Broad Form Insurance Available?

Broad form insurance is only available in 11 states:

• Colorado
• Delaware
• Idaho
• Iowa
• Maryland
• Mississippi
• Nebraska
• Nevada
• Ohio
• Tennessee
• Washington

Broad form insurance does not meet the minimum liability requirements in most states. The limited coverage is why availability is so restricted.

How Much Does Broad Form Insurance Cost?

The biggest appeal of broad form insurance is the low cost compared to standard policies. But how much could you actually save with a broad form policy?

Here are some average broad form insurance costs compared to standard minimum liability coverage:

As you can see, broad form insurance costs about 50-60% less than standard minimum liability coverage. Compared to a full coverage policy, broad form insurance is around 80-90% cheaper.

But remember – you are getting much less coverage. The low premium comes at the expense of adequate insurance protection.

Getting Cheap Broad Form Insurance Quotes

If you decide broad form insurance fits your needs, here are some tips for getting the lowest rates:

• Shop around – Get quotes from at least 3 insurers to compare options. Rates can vary significantly between companies.

• Maintain good credit – Insurers use credit-based insurance scores to set rates. Good credit means lower premiums.

• Ask about discounts – See if you qualify for any discounts like multi-policy, good driver, etc.

• Raise deductibles – Higher deductibles mean lower premiums. Make sure you can afford the out-of-pocket costs.

• Limit mileage – Less time on the road means lower risk and cheaper rates.

• Check provider ratings – Compare companies on customer satisfaction and financial strength. Avoid low-rated insurers.

Is Broad Form Insurance Right For You?

Before choosing broad form insurance, carefully consider your risks and make sure you understand the coverage limitations. For most drivers, broad form does not provide adequate protection.

You should have broad form insurance if:

• You only drive occasionally and are willing to pay for damages yourself
• You can afford to replace your vehicle if it’s damaged or stolen
• You want to supplement an existing policy with extra liability coverage

You should NOT choose broad form insurance if:

• You drive frequently or rely on your vehicle for work/commuting
• Your vehicle is financed – lenders require comprehensive & collision coverage
• You cannot afford thousands of dollars in out-of-pocket repairs if your car is damaged

For most drivers, it’s worth paying a bit more in premiums to get standard coverage. Otherwise you risk major expenses in the event of an accident or vehicle damage.

The Bottom Line

Broad form insurance provides cheap, basic liability protection. But there are major gaps that could leave you financially exposed.

Full coverage insurance costs more upfront but provides essential protections in case of an accident. For comprehensive protection, broad form insurance is rarely a good choice.

Before selecting any policy, speak with an agent to make sure you fully understand the coverage. Never choose an insurance plan blindly based on price alone. Doing your research upfront can prevent huge headaches later on.