Jessica Sautter has a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around auto insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

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Reviewed by Natasha McLachlan
Content Writer Natasha McLachlan

UPDATED: Mar 22, 2022

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If you’re getting auto insurance, you’ll want to understand the difference between regular car insurance and broad form car insurance.

Broad form insurance covers the basics that a standard policy covers as well as unusual or odd situations. A good example of this would be when a company purchases insurance for a fleet of cars vs. just one vehicle.

Another reason is that broad form will often include such damage as flying rocks (ideal if you’re driving on rough roads). This would be a separate option if it is available at all, on a standard basic insurance policy.

Broad form also requires a deductible just as a basic standard insurance policy would. These deductibles will vary according to the details of your current insurance policy.

Steering Wheel of Car

Having a broad form policy may help you in the long run if you’re trying to save money. While you may pay more for your monthly premium, you’ll save by having better coverage and being able to drive any vehicle on the policy.

In a standard policy, the coverage is only for the vehicles listed. Broad form is insurance that follows the driver or the company.

It offers lower deductibles on claims and will help to save more money in the long run for your premium.

By choosing a broad form policy, you’re getting better coverage for your fleet or cars or your drivers. This is especially important for you if you have specific driving conditions that may cause such things as cracked windshields or other such damage to your vehicles.

The broad form of coverage will require a deductible, just as a basic standard policy that has full coverage. However, this deductible will be far less costly than that of a regular policy. This policy is the ideal way to go for a lower deductible.

Who should get broad form insurance?

The reality is, with state limitations and gaping holes in coverage, there are few people that this insurance by itself, is sufficient for. If you fall into these categories, broad form coverage may be a low-cost option to consider. However, it is essential to remember that there is still a significant risk of financial loss with broad form coverage. You are a driver seeking minimal liability coverage with the financial resources to pay out of pocket for other losses.

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How much cheaper is broad form insurance than a standard policy?

Drivers could save an average $1,500 per year if they choose broad form insurance over full coverage Unlike broad form policies, full coverage includes comprehensive and collision coverage and higher liability limits. But there is some level of risk when selecting broad form coverage, as the insurance company is only responsible for the driver on the policy. Below, we use the cost of minimum liability insurance for one driver and vehicle as a substitute for broad form insurance, as rates are similar, but broad form policies may be even cheaper than minimum liability policies.

The Bottom Line

Broad form insurance coverage extends beyond the basics to include rare events that may be of serious risk to the insured. This type of insurance usually requires that a higher premium, and often a deductible, be paid. Broad form of insurance can be applied to nearly all forms of insurance, including investments, assets, etc.

Broad form auto insurance is the most bare-bones of auto insurance policies for car owners and drivers. Broad form coverage is best for drivers who own an older vehicle and single drivers with no family.