When it comes to getting the best coverage at the lowest price, broad form auto insurance is one of the more popular options. While there are some limitations, this form of auto insurance is a viable option for many people. Lets learn how this policy actually works, which state allow this for their residents and how to get an affordable one.
Table of Content
- What is Broad Form Car Insurance?
- Broad Form Named Operator Policy for Liability Only:
- Is Broad Form Auto Insurance a Suitable Option?
- Broad Form Comprehensive Auto Insurance:
- What are the Limitations?
- Get the Best Deal:
What is Broad Form Car Insurance?
Also called broad form named operator coverage, this type of insurance only covers the name that is on the policy. So, if you were to have an accident, the only person in your vehicle that would be covered is you. This type of insurance is best suited for those
- Who live alone
- Never take passengers
- Never lend their vehicles out to anyone.
This type of broad form insurance is mostly available in Washington (WA) state and residents of Seattle can enjoy the full benefits.
For those who are single, broad form auto insurance offers considerable advantages, particularly if you are on a tight budget. Until your particular situation changes and you find yourself loaning out your vehicle or taking on passengers, then this type of insurance is one that you should check out.
Have any query? Check out the Broad Form Insurance FAQ section.
Broad Form Named Operator Policy for Liability Only:
Although there is a decided advantage in getting insurance that is less expensive, the fact that this particular type of insurance covers only the policy holder does have limitations that need to be observed.
Only the policy holder is covered. So, if there are passengers in the vehicle who are injured, there is no coverage for them. This could leave you open to a lawsuit if that person becomes injured and has no way to pay their medical expenses.
Furthermore, if someone borrows your vehicle, they are not covered which means that they are committing a violation under state law unless they get their own insurance coverage. If the person who borrows your vehicle is involved in an accident, they will be responsible for any damages and injuries that they have caused.
Plus, you could be sued for damages if another person is driving your vehicle and causes an accident to occur.
As long as you own your vehicle or have permission to drive a vehicle, this form of insurance will cover you during the time of operation. So, if you borrow someone else’s vehicle, the broad form coverage will be there for you in case there is no other insurance on the vehicle itself.
In addition, it is important to know that this type of insurance is secondary to any other type that is covering a vehicle. So, if you were to borrow a vehicle from someone, their insurance would be the primary coverage.
There is only one version and that is broad form auto liability insurance which means that there is no coverage for any damage that is done to your vehicle unless it was caused by the other driver. Only in that case you would receive any compensation for damage that was inflicted to your car or truck.
Motorcycle or Company Vehicle is Not Covered:
This type of insurance will not cover you if you are driving a motorcycle or company vehicle. Motorcycles require their own separate form of coverage while a company vehicle must have commercial vehicle insurance coverage. So, you will need to be mindful about what type of vehicle you borrow before assuming that broad form will actually cover it.
The good news however, is that because this type of insurance offers no frills or extras, you can get good, basic liability coverage that is considerably less expensive than standard liability. You will need to check to see if this meets your state minimum insurance level.
Is Broad Form Auto Insurance a Suitable Option?
Before selecting this type of coverage, it will be important to know if this really fits your needs. All too often, people are attracted by the lower cost and overlook their own lives where they often carry passengers or loan out their vehicle to others.
Plus, this type of coverage is not applicable when you drive a motorcycle or company vehicle. So, that will have to be taken into account as well.
It will be important for you to sit down and decide if broad form name insured is really the right form of insurance for your need. This means going over your life and taking into account family members, friends and co-workers who may get rides from you from time to time.
You will need to take all of this into account so that you can make the best informed decision. However, if you cannot remember the last time that you ever took a passenger in your vehicle because it has been that long, then this may be the right choice for your needs as it will save you money.
Broad form auto insurance is the right choice if purchased after evaluating requirements and what benefits you expect from the coverage. So, this is very important to analyze your own financial condition initially carefully before going for broad form coverage.
Broad Form Comprehensive Auto Insurance:
This type of broad form insurance for Washington residents is less popular than the liability option because it is more expensive.
However, there are certain advantages in that this form of insurance is well suited for covering the damage to the vehicle itself even if you were the cause of the accident. One potent advantage is that it makes borrowing a vehicle easier if there is no insurance coverage. Whatever happens, the vehicle itself will be protected.
However, it should be noted that this form of insurance does not cover anyone else, just like the liability version.
What are the Limitations?
Broad form insurance is one-size-fits-all and you should know this is not suitable for everyone. You can learn about the limitations here.
Get the Best Deal:
When you decide that broad form auto policy is right for your needs, you will have to find the right insurance company that offers the best combination of coverage and price. This will mean searching for broad form auto insurance quotes from a number of different companies. Then compare them to see which one is best for your needs. The good news is that this type of search is relatively quick and will not cost you a dime.
So, when looking for broad form coverage, be sure to take the time and get the best quotes. This way you will pay less for your insurance.