BROAD FORM INSURANCE: What Is It & What Does It Cover?

As it just covers one driver with the bare minimum of liability coverage, Broad Form auto insurance is a more affordable choice. This implies that anyone else who drives your automobile is not covered. Only a few states offer this kind of coverage due to the high amount of risk involved.

You can use our guide to learn more about Broad form insurance and decide if it’s the ideal kind of protection for you.

What is Broad Form Insurance?

Broad form insurance coverage goes beyond the fundamentals to cover uncommon occurrences that could put the insured in considerable danger. This kind of insurance typically has a higher cost and frequently includes a deductible. Almost all insurance types, including investments, assets, and other types of insurance, can be classified as broad form insurance.

Note that:

Broad form insurance covers risks and hazards that are less frequent but still have the potential to cause substantial losses.
It is possible for broad form coverage to be offered as a basic policy benefit or as an add-on to a normal policy.
Broad form insurance has more expensive premiums and deductibles than regular policies as a result.

Broad Form Insurance Coverage

Depending on who was at blame for the accident, the three categories of coverage offer different levels of protection:

#1. Standard –

No matter who is at fault, repairs or replacements to an insured car are covered. If you ever need to make a claim, the deductible is your responsibility.

#2. Broad –

You won’t be responsible for your deductible unless you are determined to be more than 50% at fault in an accident that is covered by your policy. You won’t be required to pay your deductible if your percentage of culpability is less than 50%.

#3. Limited –

Only when the driver is less than 50% at fault is the repair or replacement of an insured car reimbursed. You’ll have to cover your deductible in this situation. Damages from the incident are not covered unless the driver of the insured car is more than 50% at fault.

Where Is Broad Form Insurance for Drivers Available?

As earlier stated, it is a liability policy that only covers one person. No matter who is driving, the majority of liability insurance policies cover liability expenses for a single car. Only one driver is covered under broad form insurance across several cars.

Broad form insurance frequently falls short of the minimum insurance requirements in states. Broad form insurance is only available in:

Colorado
Delaware
Idaho
Iowa
Maryland
Mississippi
Nebraska
Nevada
Ohio
Tennessee
Washington

Pros of Broad Form Insurance

Cheap general insurance is available.
It can be applied to numerous automobiles.
It will cover responsibility costs for damage to property and injuries to people.

Cons Broad Form Insurance

Very little is covered by broad form insurance. Therefore, it will cause significant coverage gaps.
It excludes any other drivers who might operate your vehicle.
The majority of states’ minimum insurance requirements are not met by it.

Broad Form Insurance Cost

Auto insurance policies with broad forms typically have the lowest premiums. Depending on the jurisdiction and insurance provider, premium expenses might range from $300 to $1,000 annually.

The cost of comprehensive coverage depends on several other factors. Insurance companies frequently take the following into account:

#1. Your record as a driver: Traffic infractions and accident histories increase premium costs since they increase risk. Drivers with spotless records, on the other hand, frequently pay less.

#2. How often you drive: Because frequent drivers are more likely to get into an accident, their insurance premiums may be higher than those of occasional drivers.

#3. Your automobile: Some car types are more likely to cause damage in collisions than others; therefore, they frequently cost more to insure against liability.

#4. Your years of age: Older, more knowledgeable drivers typically cause fewer collisions than their younger colleagues, so they typically have to pay cheaper insurance.

Who Offers Broad Form Insurance

#1. USAA:

USAA car insurance is exclusively accessible to military personnel and their close relatives. However, USAA is a simple choice for auto insurance if you have access to it. In addition to offering some of the best savings for active-duty service members, USAA also scores highly for customer satisfaction.

Furthermore, we grade USAA at 4.8 out of 5, making it the highest-rated supplier on our site. USAA receives high grades from J.D. Power for handling claims, while AM Best rates the vehicle insurance provider’s financial health at A++.

#2. Geico:

Geico provides complete coverage at affordable rates. Additionally, it offers add-ons including insurance against mechanical breakdowns, roadside assistance, and rental reimbursement.

Furthermore, Geico has an A++ rating from AM Best for financial strength and an A+ rating from the Better Business Bureau (BBB). With apps for submitting claims and getting roadside assistance, Geico’s insurance apps streamline and speed up customer service. Note that the DriveEasy app even allows you to track your driving, which can reduce your premiums.

Average Annual Liability Auto Insurance Rates by State

State

Average Annual Rates for Liability Coverage

Alabama	$372.57
Alaska	$547.34
Arizona	$488.59
Arkansas	$381.14
California	$462.95
Colorado	$477.10
Connecticut	$633.95
Delaware	$776.50
District of Columbia	$628.09
South Dakota	$289.04
Florida	$845.05
Georgia	$490.64
Hawaii	$458.49
Idaho	$337.17

Is broad form insurance good?

Broad form insurance is a good choice for:

drivers who are at fault in an accident but do not have comprehensive or collision coverage,
do not have passengers,
do not need greater liability coverage limits, and
have health insurance that will cover their injuries.

What is the difference between basic and broad form coverage?

Basic is the least comprehensive of the three levels of coverage because it only covers certain dangers. It is the least comprehensive of the three categories and provides you with coverage for the most frequent losses that can occur.

Broad form is more comprehensive than basic but falls short of special in scope. With numerous improvements, it incorporates coverage for the risks listed in the basic form. Similar to a standard form of policy, it only covers specific risks. The coverage will be excluded if it is not included in the insurance.

Is broad form the same as a liability?

Broad form is equivalent to liability-only protection for vehicles with a single insured. As a result, you can significantly reduce the cost of your monthly premium. However, contrary to normal liability coverage, you cannot add family members to your broad form policy.

Does broad form include replacement costs?

The general type of homeowners insurance is called HO-2. The residential structure is covered at replacement cost under this type of policy, and your possessions are covered at actual cash value (ACV). Additionally, 16 identified hazards such as fire, lightning, wind, hail, smoke, theft, and vandalism are covered.

What does a broad form of dwelling policy cover?

A broad form policy that extends coverage to include things like water damage, falling objects, and damage from shattered windows and other structural glass.

What is Broad Form Insurance’s cause of loss?

The named perils coverage for the hazards insured against in the basic causes of loss form (fire, lightning, explosion, smoke, windstorm, hail, riot, civil unrest, aircraft, vehicles, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action) is provided by the broad causes of loss form.

What is an example of a Broad Form liability?

Broadform liability describes an insurance plan that includes both public and product liability coverage. A common illustration of this is a retail establishment that hires a third-party security firm to provide security services.

Does broad form cover theft?

Theft or loss of personal property is covered by broad form personal theft insurance. It can be applied to any type of personal property and is all-risk, which means the same coverage will be provided whether the loss results from theft, vandalism, or loss.