Everyone wants to save money on their car insurance, and there are many ways to do it. Lower coverage limits, higher deductibles, and discounts are some of the most common ways to save. There's also an option to purchase something called broad form car insurance. But this option is just bare-bones coverage that may leave you significantly underinsured.
An independent insurance agent can help you determine if broad form auto insurance is the right choice for you to save money on your premiums. They'll ensure you get set up with all the coverage you need at the best possible rate. But first, here's a closer look at broad form car insurance and what it covers.
Key Takeaways - What Is Broad Form Auto Insurance?
Broad form auto insurance only covers the named driver of the vehicle on the policy; coverage can't apply to other drivers who use your car.
Broad form auto insurance only covers bodily injuries and property damage to third parties; it doesn't cover your own property damage or injuries.
USAA, Progressive, and Nationwide are the cheapest carriers for broad form insurance in 2026.
Broad form auto insurance is only available in 11 states.
Working with a local independent insurance agent is highly recommended, as they can help you compare your car insurance options and determine if broad form coverage is right for you.
How Much Does Broad Form Insurance Cost?
Broad form car insurance costs an average of $768 per year, so how much does broad form insurance cost per month? Broad form insurance costs an average of $64 per month, depending on where you get coverage and how much you need. The table below compares average rates for broad form insurance by carrier. USAA has the cheapest coverage rates for 2026, starting at just $50 per month for minimum coverage.
| Top Car Insurance Companies | Average Monthly Cost of Minimum Coverage | Average Monthly Cost of Full Coverage |
|---|---|---|
| Allstate | $72 | $137 |
| Liberty Mutual | $74 | $146 |
| Nationwide | $63 | $129 |
| Progressive | $59 | $121 |
| Travelers | $67 | $130 |
| USAA | $50 | $109 |
What Is a Broad Form Auto Insurance Policy?
Broad form car insurance, also known as broad form named operator coverage, offers very limited coverage, typically only the minimum amount of liability car insurance that's legally required in your state, at a low price. There's a catch to this, though.
Basically, broad form auto liability insurance insures a driver rather than a specific vehicle. It insures only the named operator on cars they own and cars they don’t own but have permission to drive.
This type of coverage is suitable only for drivers who never plan to let anyone else drive their car, even for a short distance. If you have family, a spouse, or anyone else likely to get behind the wheel of your car, broad form auto insurance is likely not the right choice for you.
What is broad form auto insurance? 2026
The table below breaks down what is and is not covered by broad form insurance in 2026.
| Category | Covered | Not Covered |
|---|---|---|
| Named Operators |
|
|
| Injuries to Others |
|
|
| Property Damage to Others |
| |
| Physical Damage to Your Vehicle |
|
|
| Others Driving Your Vehicle |
|
|
| Your Personal Injuries |
|
|
| Uninsured/Underinsured Motorist |
|
If you're unsure which type of auto insurance works best for your unique needs, work together with a local independent insurance agent who can advise you.
What broad form insurance covers
What is broad form insurance? Basically, broad form auto insurance covers only the following:
- Bodily injury liability to others: When you're driving your car and cause bodily injury to a third party, broad form auto insurance can cover the associated expenses.
- Property damage liability to others: When you're driving your car and cause property damage to a third party, broad form auto insurance can cover the associated expenses.
In some cases, personal injury protection (PIP) and uninsured motorist coverage can also be added to a broad form auto insurance policy.
What broad form insurance does not cover
There are several key protections typically not provided by broad form insurance, including:
- Collision
- Comprehensive
- Your personal injuries
- Your passengers
- Motorcycles
- RVs
- Commercial vehicles
- Endorsements*
*Typically, broad form auto insurance doesn't include rental reimbursement or roadside assistance coverage. Your independent insurance agent can help you review your broad form auto insurance policy to ensure you understand all its exclusions.
The Gaps in Broad Form Insurance Coverage
If another driver crashed into your car and you only had broad form auto insurance, you wouldn't have coverage for the damage to your vehicle or any others, but you could still be held legally responsible and required to pay. But if you crashed your own car, you'd only have coverage for damage to the other driver’s vehicle and their injuries, as well as any injuries to their passengers. If your car got damaged or you got injured, your broad form auto insurance policy would not reimburse you for those costs.
Broad form auto liability insurance might be sufficient for you if you have an older car that wouldn't be worth repairing after an accident. But even under those circumstances, this type of policy has some serious limitations that leave you financially vulnerable. Here are a couple of examples:
- Broad form auto insurance policies provide no comprehensive auto insurance or collision car insurance coverage. You'd have no coverage for your own injuries or damage to your own vehicle. You also wouldn't have protection against theft or vandalism to your vehicle.
- You may not actually save money. If you got into an accident and got sued for damages, your personal assets would be at risk. Buying a more complete auto insurance policy would probably save you money in the long run because you'd have coverage for a wide variety of situations.
- You may not have coverage while driving other vehicles, such as motorcycles, RVs, ATVs, and commercial trucks.
- You likely won't have coverage if you loan your car to someone else and they cause an accident.
- You could be at risk financially if you were sued for an amount that exceeds your coverage limits.
Broad form auto insurance may be appealing because it's cheap and meets state minimum coverage requirements, but it can ultimately leave you without the protection you need when a disaster occurs. An independent insurance agent can help you find out more about cheap car insurance for one driver, including broad form insurance for older cars.
Broad Form Insurance vs. Non-Owner Insurance vs. Standard Liability vs. Full Coverage
Perhaps you've been considering whether to get broad form insurance or a standard auto policy. The table below compares broad form vs. full coverage, minimum coverage, and non-owner coverage to help you decide.
| Coverage Category | Broad Form Car Insurance | Non-owner Car Insurance | Liability-only Car Insurance (Minimum Coverage) | Full Coverage Car Insurance |
|---|---|---|---|---|
| Collision/comprehensive available? | No | No | No | Yes |
| Typical monthly cost | $64 | $83 | $100 | $216 |
| Can you add drivers? | No, covers named insured only | No, covers named insured and co-insured only | Yes, covers named insured, listed drivers, and occasional operators | Yes, covers named insured, listed drivers, and occasional operators |
| Vehicles covered | Third party | Those you drive often but do not own | Your own and third-party | Your own and third-party |
| Best for | Those who own low-value cars | Those who rely on rental cars | Those who own older, paid off cars | Those who own newer, high-value, financed, or leased cars |
If you've been wondering, "Is broad form insurance cheaper than liability?" The answer is no. However, getting minimum liability car insurance can have several benefits over broad form coverage, including the ability to add drivers to your policy.
Who Should (and Should Not) Get Broad Form Insurance?
There are a few easy ways to determine if broad form auto insurance is right for you. Consider the following criteria to decide whether broad-form auto insurance would be a good fit or if you might need more coverage.
| Good Fit If: | Not a Good Fit If: |
|---|---|
| You're a solo driver | Your family shares a vehicle |
| You drive an older or less valuable vehicle | You own a newer or more valuable vehicle |
| You have no other household drivers | You need comprehensive and/or collision coverage |
| You're between vehicles | |
| You need an SR-22 |
Broad Form Insurance and SR-22 Filings
Broad form policies can accommodate SR-22 filings for license reinstatement in states that allow it. However, your eligibility varies by insurance company. Most states require you to maintain this coverage for three years. You can ask your independent insurance agent for more information about having broad form insurance with SR-22 insurance.
What States Allow Broad Form Auto Insurance in 2026?
Only 11 states allow drivers to buy broad form auto insurance to meet the minimum requirements for coverage. However, it's important to keep in mind that not all carriers in broad form insurance states offer this coverage.
Further, consider that broad form collision coverage is only available in Michigan, and the deductible only applies if the driver is at fault for an incident. The states that allow broad form auto insurance include:
- Colorado
- Delaware
- Idaho
- Iowa
- Maryland
- Mississippi
- Nebraska
- Nevada
- Ohio
- Tennessee
- Washington
If you don't reside in any of these states, you'll need to purchase at least the minimum required car insurance liability coverage in your area, as well as any other coverage that may be required by law. An independent insurance agent can help ensure you satisfy your state's car insurance requirements. They can help you get set up with broad form insurance in Washington state or anywhere coverage is available.
Get the Auto Insurance Coverage You Really Need
Most states require drivers to have a minimum amount of car insurance that covers bodily injury liability and property damage liability. Broad form auto coverage may not even be legal in many states where the minimum amount of coverage required by law exceeds the simple liability protection available in this type of policy.
Most drivers purchase additional auto insurance coverage depending on their needs. A basic auto insurance policy includes several types of coverage, each subject to certain limits and with a premium amount attached. In order to have sufficient coverage if you have a claim, consider the following auto insurance coverage options:
- Auto liability insurance: Bodily injury liability coverage provides protection if you injure someone else while driving your car by covering their medical expenses and lawsuit costs if you are sued. Property damage liability coverage pays for any physical damage to third-party property you cause, such as another vehicle, a fence, or a tree, and for your legal defense if you are sued.
- Collision coverage: Pays for damage to your car from a collision with another object, regardless of fault. This coverage is not included in broad form insurance, so you'd have to pay for physical damage to your vehicle out of your own pocket.
- Comprehensive coverage: Pays for damage to your car due to a non-collision event such as a flood or theft. This coverage is not included in broad form insurance, so you'd have to pay for physical damage to your vehicle out of your own pocket.
- Uninsured motorist coverage: Protects you if your vehicle is damaged or you are injured by a hit-and-run driver or by a driver who doesn't have auto liability coverage. It takes the place of liability insurance that the other driver should have. This coverage is not included in broad form insurance, so you'd have to cover the costs after a related incident.
- Underinsured motorist coverage: Protects you if another motorist is at fault for a collision but doesn't have enough insurance to cover your losses. This coverage is not included in broad form insurance, so you'd have to cover the costs after a related incident.
- Medical payments coverage: This coverage is optional in many states but required in some. It helps to cover medical, dental, and funeral expenses for you or your passengers, regardless of who is at fault. This coverage is not included in broad form insurance, so you'd have to cover the costs by yourself.
- Personal injury protection: This covers the cost of medical expenses and lost wages for you and your passengers if you're injured in an accident, regardless of fault. This coverage is not included in broad form insurance, so you'd have to cover the costs on your own.
Many drivers choose additional options that offer convenient coverage. Rental reimbursement coverage, for example, provides for a rental car if your vehicle is damaged by a covered loss. Roadside assistance coverage, or towing and labor coverage, pays for professional assistance if you get locked out of your vehicle, run out of gas, or face another problem while on the road.
Remember, auto insurance policies have deductibles you must pay before your coverage kicks in and reimburses you. If you have both comprehensive and collision coverage, you likely have a deductible that must be met for each.
6 Ways to Find the Right Auto Insurance Coverage on a Budget
There are many options to save money on car insurance, and some may be a wiser choice for you than broad form auto insurance.
Tips for saving money on your auto insurance
- Shop around: An independent insurance agent can help you get quotes from multiple insurance carriers to ensure you get the best rates available.
- Bundle your policies: Most insurance companies offer discounts if you purchase more than one policy from them. The more policies you have (e.g., homeowners insurance, car insurance, umbrella insurance, etc.), the greater your discount.
- Maximize discounts: Insurance companies usually offer a wide variety of car insurance discounts, such as savings for multiple policies, safe driving, and good students. Your agent will work with you to ensure you receive any discounts you qualify for.
- Keep a clean driving record: Traffic violations have a negative impact on your insurance rates. Avoiding tickets and accidents helps keep your rates down, and many insurance companies offer additional discounts to those with a clean driving record.
- Choose higher deductibles: Typically, the higher the policy's deductible, the lower the premium. If you think you'll have enough cash to cover your deductible if you have to file a claim, consider a higher deductible to lower your rates.
- Ask about telematics/usage-based programs: Many car insurance companies offer telematics programs that track your mileage or driving behavior. This can be a great potential savings option for low-mileage drivers.
As always, an independent insurance agent can offer further advice to help you save the most money possible on your car insurance.
FAQs About Broad Form Insurance
Is broad form insurance the same as liability insurance?
No, broad form insurance is more restrictive than liability insurance. Standard liability insurance covers all listed drivers, while broad form covers only the named operator. However, both policies provide only liability coverage, not comprehensive or collision.
How much does broad form insurance cost per month?
Broad form insurance rates start around $50 per month, but the average is $64 per month, or $768 annually. Exact rates depend on your driving record, state, and carrier.
What is the difference between broad form and non-owner insurance?
Broad form insurance covers the named driver in owned or borrowed vehicles. Non-owner covers drivers who do not own a vehicle but drive borrowed cars. Broad form insurance is more flexible if you own a car.
Can I add an SR-22 to a broad form policy?
Yes, in most states that allow broad form insurance, carriers can attach an SR-22 filing to the policy for license reinstatement. Eligibility varies by insurer and state.
Does broad form insurance cover passengers in my car?
No. Broad form insurance doesn't cover injuries to you or your passengers. However, adding medical payments coverage or PIP to cover passengers can convert broad form insurance to a non-owner policy in some states.
How much can I save with broad form insurance vs. full coverage?
Drivers who switch from full coverage to broad form insurance can save an average of $1,500 per year. Full coverage averages $2,513 per year nationally, while broad form insurance rates average under $1,000 per year.
What happens if someone else drives my car and I have broad form insurance?
Your broad form insurance will not cover the accident if someone else borrows your car. As the vehicle owner, you may still be held legally and financially responsible for damages. Broad form covers only the named driver on the policy.
Is broad form insurance available in my state?
Broad form insurance is only available in 11 states: Colorado, Delaware, Idaho, Iowa, Maryland, Mississippi, Nebraska, Nevada, Ohio, Tennessee, and Washington.
The Benefits of Working with an Independent Insurance Agent
All the options for auto insurance can be confusing, and you may not know which is the right choice for you. Independent insurance agents can help simplify this decision for you by recommending only the kind and amount of car insurance you really need. They'll shop and compare policies from multiple insurance companies to make sure you get the best rate, too. And down the road, your agent can help you file car insurance claims and update your coverage when necessary.
Sources
https://www.bankrate.com/insurance/car/broad-form-car-insurance/#broad-form-car-insurance
https://wallethub.com/answers/ci/what-is-broad-form-insurance-2140803079/#:~:text=Broad%20form%20insurance%20is%20only,insurance%20requirements%20and%20nothing%20else.
https://www.valuepenguin.com/broad-form-car-insurance
https://ultracarinsurance.com/what-is-broad-form-sr22-insurance/
https://clearsurance.com/blog/cheapest-broad-form-car-insurance-coverage