Everybody wants to save money on their car insurance, and there are many ways to do it. Lower coverage limits, higher deductibles, and discounts are some of the most common ways to save.
You might even have heard that broad form auto insurance is a way to get the coverage you need without a high price tag. While the term “broad form” implies wide or comprehensive coverage, the opposite is true. Broad form auto insurance is bare-bones coverage that may leave you significantly underinsured.
Broad form car insurance offers very limited coverage—perhaps only the minimum amount of liability that is legally required in your state—at a low price. If you want to purchase broad form coverage, you need to understand exactly what it does and does not cover. You should also be prepared for gaps in coverage that could be devastating if you have a claim.
Broad form auto liability insurance (also called broad form named operator coverage) covers only one named driver with minimal liability insurance. Coverage is excluded for anyone else who operates the car, under any circumstances.
It is suitable only for drivers who know that no one else will ever drive their car. If you have a family, a significant other, or anyone else who is likely to get behind the wheel of your car, broad form auto insurance is not for you.
If another driver crashes into your car, you will not have coverage for the damage to your vehicle or any other, and you can still be held legally responsible and required to pay. If you crash your own car, you will only have coverage for damage to the other driver’s vehicle and the other driver’s injuries. If your car is damaged or you have injuries, your broad form auto insurance policy will not pay.
Broad form auto liability insurance might be sufficient for you if you have a very old car that would not be worth repairing after an accident. But even under those circumstances, this type of policy has some serious limitations that leave you financially vulnerable.
Most states require that drivers have a minimum amount of car insurance that covers personal injury and property damage liability. Broad form coverage may not even be legal in many states where the minimum amount of coverage required by law exceeds the simple liability protection available in a broad form auto liability policy.
Most people purchase additional auto insurance coverage depending on their needs. A basic auto insurance policy includes several types of coverage, each subject to certain limits and with a premium amount attached.
In order to have sufficient coverage if you have a claim, consider the following auto insurance coverage options:
Many people choose other options that offer convenient coverage. Rental reimbursement coverage, for example, provides for a rental car if your vehicle is damaged by a covered loss.
Roadside assistance coverage, or towing and labor coverage, pays for help if you are locked out of your vehicle, run out of gas, or face some other type of problem while out on the road. Your insurance company will help you contact tow trucks, locksmiths, or other forms of assistance as needed, and will reimburse you for the costs of these services up to certain limits.
Remember, auto insurance policies have deductibles that you must pay before your coverage kicks in and reimburses you. If you have both comprehensive and collision coverage, you will have a deductible for each.
Here are some tips for saving money on your auto insurance:
Whether you’ve decided that a broad form auto insurance policy is right for you—despite its shortcomings—or you are looking for a well-rounded auto insurance policy, your best bet is to work with an independent insurance agent. A local Trusted Choice agent has your best interests in mind and can work with multiple insurance companies to find the best fit for your needs and budget. Simply find an agent in your area and start getting quotes today.