What is broad form insurance?

Broad form insurance is a type of car insurance available in a few states that only meets the state’s minimum coverage requirements and covers only the policyholder, not a vehicle. Broad form insurance allows you to pay as little as possible for car insurance but also puts you at risk because it covers so little.

Key Things to Know About Broad Form Insurance

• Not available in every state. Broad form insurance is only allowed in Colorado, Delaware, Idaho, Iowa, Maryland, Mississippi, Nebraska, Nevada, Ohio, Tennessee, and Washington.
• Covers very little. Broad form insurance is meant to satisfy your state’s minimum liability insurance requirements and nothing else. Liability insurance only pays for others’ medical expenses or property damage caused by an accident you were at fault for.
• Other drivers are not covered. Only the policyholder is covered by broad form insurance, so anyone who borrows the vehicle will not be protected while driving.
• It is a cheap option if you drive multiple vehicles. The coverage is specific to the policyholder, not the vehicle. So, unlike with a standard car insurance policy, broad form insurance premiums do not increase if you add multiple vehicles.
• Difference between broad form and broad form collision. Broad form insurance is very different from broad form collision insurance. Broad form collision insurance is a type of collision coverage that waives your deductible after an accident if you were not at fault.

To learn more, check out WalletHub’s guide to cheap car insurance.