When shopping for auto insurance, it's essential to understand the different types of coverage available. One lesser-known option in some states is broad-form auto insurance, which offers unique coverage compared to standard auto insurance.

This guide defines broad-form insurance, what it insures, its pros and cons, and whether it's a good choice for you. Read on!

What Is Broad-Form Insurance?

Broad form auto insurance coverage is a form of automobile insurance that covers one driver for liability only and not the particular car. That is, you are covered to drive any vehicle you are licensed to drive but not other drivers or cars.

Contrary to general automobile insurance policies that cover many individuals in a house and protect the insured car, broad-form policies cover just one person. They are best suited as an affordable means of covering people with limited driving schedules or multiple drivers who do not require large levels of protection.

What Does Broad-Form Insurance Cover?

Broad form insurance coverage mostly protects you against liability costs if the insured driver causes the accident.

The policy usually entails: Bodily injury liability, which pays for other people's injuries in the event that you are responsible for the accident. Property damage liability, which pays for damage to someone else's property, like his or her vehicle, fence, or building, in the event that you were responsible for the accident.

Since this kind of insurance deals with liability, it is not insurance for your own vehicle. If your car gets into an accident and is damaged, stolen, vandalized, or hit by a natural disaster, you have to pay for replacements or repairs yourself.

What Does Broad-Form Insurance Not Cover?

Although broadform liability insurance provides minimum liability coverage, it lacks several critical coverages that standard auto insurance policies typically offer. It excludes:

• Damage to your vehicle itself, since it does not include collision or comprehensive coverage.
• Medical payments for you, so your injuries in an accident will not be covered.
• Uninsured or underinsured motorist coverage, i.e., if someone else runs into you and lacks adequate insurance, broad-form insurance will not compensate for your damages. *Other drivers, i.e., nobody else, friends or family, are covered under your policy.

Such limited coverage makes broad-form insurance dangerous to drivers who want money protection in various situations.

Who Should Consider Broad-Form Insurance?

Broad-form insurance can be an appropriate choice for:

• Those who operate several vehicles do not wish to insure every vehicle individually.
• Low-cost insurance seekers who are ready to accept limited coverage.
• Those who do not share their vehicle and are the sole drivers of their vehicle.

However, it is not the best for those with more than one driver at home, who prefer full coverage in their own car or require medical coverage if they are in an accident.

Where Is Broad-Form Insurance Available?

Not every state offers broad-form insurance since its limited protection exposes drivers economically. It is offered in a few states, such as Washington and Colorado. Before applying for this kind of policy, find out if your state allows it and the exact restrictions.

Advantages

• Less expensive than regular insurance.
• Protects several vehicles without having to take out a policy for each one.
• Basic coverage without having to specify individual vehicles.

Cons

• No protection for your own car in the event of a collision.
• No medical coverage for the injuries sustained by the policyholder.
• Limited availability in some states.
• No coverage for other drivers who drive your vehicle.

Final Thoughts

While broad-form insurance is an affordable alternative that protects the liability of one driver, policyholders are vulnerable to financial losses because it provides limited protection.

It might be worth considering if you're seeking the lowest cost and don't require coverage for your own car. However, a standard auto insurance policy is the best option if you desire complete protection, including medical and collision coverage.

Consider your driving behavior, budget, and tolerance for risk thoroughly before buying broad-form insurance. If in doubt, consulting an insurance professional will assist you in deciding whether this insurance is suitable for you.