What Is Broad Form Insurance?
A broad form auto insurance policy is one that covers executives, employees or any such persons that drive company vehicles. Nevertheless, drivers covered under such policies must not be owning a personal vehicle and thereby, not having a personal car insurance cover. The company that owns the car endorses listing of driver in the policy by getting names of individuals or spouses added who will be driving the company vehicle as a third party driver.
3 USEFUL TIPS FOR AFFROADBLE BROAD FORM AUTO INSURANCE
What Does Broad Form Auto Insurance Cover?
Unlike regular auto insurance policies that allow numerous drivers to be listed for liability coverage, a broad form vehicle insurance policy will only cover one driver for liability damages. Thus, it is an inexpensive method to get liabilities covered.
The coverage will not cover a driver who isn’t listed on the company’s car insurance policy. It is due to this reason that broad form coverage works best for vehicle owners that don’t allow anyone else to drive their cars.
And if you happen to own or drive two or more cars, you will not be required to pay extra money to get them insured under a broad form vehicle insurance cover. Furthermore, if you aren’t the car owner then it is better to buy a non-owner auto insurance policy.
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HOW DOES A STANDARD INSURANCE DIFFER FROM BROAD FORM COVERAGE?
Now that you know what is broad form insurance, it is time you knew how it differs from standard car insurance. Apart from the fact that such a policy will permit car owner to list only one driver, the coverage levels might not even meet your state’s minimum liability requirements.
All standard auto insurance policies provide liability, comprehensive and collision coverage features over and above other additional coverage options. This gives driver the opportunity to add extra protection. On the other hand, Broad form policies can retard your ability to add comprehensive and collision coverage features which may be important.
Major Benefits Of Buying Broad Form Coverage Car Insurance
meet state minimum requirements
A broad form vehicle insurance cover can be effectively used as basic coverage for a single driver that meets your state’s minimum liability requirements to drive car legally on road.
avoid unnecessary fines
With cheap broad form vehicle insurance for a single driver option available at your disposal, you can avoid paying hefty penalties as you are not uninsured while driving your car.
save money on insurance
As the coverage levels in a broad form car cover will be limited, the cost of purchasing such type of an auto insurance policy will be low and easily sustainable.
get coverage if you don’t own a car
You can even purchase broad form insurance for a borrowed vehicle. Such a proposition is always better than driving the car uninsured as you will not have to pay fines, if caught by traffic inspector.
ideal for low-value vehicles
Buying a broad form car insurance for employees is worthwhile if the market worth of company vehicle is less. Older paid-off vehicles are lowly valued as car prices depreciate pretty quickly.
Bundle Insurance Policies
It is possible to qualify for an extra premium discount if you bundle broad form car, home/renter and life insurance covers under one umbrella policy.
Limitations Of Broad Form Car Insurance For Company Vehicles
Having broad form liability car insurance may be sufficient if you are driving an old car that hardly has any market value left in it. However, even in such kind of a situation, broad form car coverage can have certain limitations that can expose you to financial risks as under:
- Broad form vehicle insurance policies do not have comprehensive and collision coverage features. So, if driver gets injured or car is damaged due to an accident, they won’t be covered.
- In the absence of full coverage, if you get sued post an accident involving the insured car under a broad form cover, you will have to bear all legal expenses and compensation on your own.
- You cannot drive other vehicles like ATVs, commercial trucks or motorcycle with broad form insurance coverage.
FAQs on Broad Form auto insurance
Determine whether buying a low cost broad form car insurance policy is right for you!
A broad form auto insurance policy may cover perils like fire, riot, vandalism, hail, windstorm and explosion. But a standard all-risk policy will cover everything that causes damage to cars except those situations which are named as exclusions.
Broad form insurance will cover common types of damages to cars and property. On the other hand, special form auto insurance is an all-inclusive policy that is to be read differently as compared to a broad form auto insurance cover.
No. Broad form car insurance is usually much cheaper than standard auto insurance liability cover as the premium is low. However, it provides minimum level of financial protection as only one driver is covered. So, it is not suggested for majority of the drivers.
A basic insurance policy will pay costs for other person’s bodily injuries and property damages post an at-fault accident. It will also cover someone else who is driving your vehicle. But broad form car insurance will only cover liability damages of driver who is listed on the policy.