Broad Form Insurance: Limited Coverage for One Named Driver

You've probably heard of the most common car insurance policies, like liability coverage, full coverage, collision, property, and comprehensive. Another option you may come across when shopping for auto insurance, especially if you're trying to save money, is broad form insurance coverage. Broad form insurance is a type of policy available in some states that provides state-minimum liability coverage to one named driver, owner or not, rather than the vehicle itself. It offers relatively low premiums, but it also offers relatively little protection.

Here's more about what broad form insurance is, what it covers, who it's best for, and the advantages and disadvantages of this type of policy.

What is broad form insurance?

Broad form insurance, also called broad form named operator insurance, is a type of bare-bones coverage that may offer the benefit of lower car insurance rates. But most states require that you have more auto insurance coverage than broad form provides, and this type of policy doesn't let you extend your coverage to other members of your household who might drive your vehicle.

In 2025, broad form insurance is accepted in the following 11 states:

• Colorado
• Delaware
• Idaho
• Iowa
• Maryland
• Mississippi
• Nebraska
• Nevada
• Ohio
• Tennessee
• Washington

How it differs from other policies

This type of insurance works in a unique way. Rather than insuring your personal vehicle and whoever drives it (and is named on the policy), it insures you as a motorist. As the named driver on a policy, you'll be covered no matter which car you drive. This gives you flexibility if you don't own a car but want to be an insured driver as required by law, or if you have multiple cars. Unfortunately, it can also open you up to significant risks because of the things it doesn't cover.

What does broad form insurance cover?

Generally, broad form insurance pays for damage to property other than the vehicle you're driving and any injury liability you may have if you harm others. As with any insurance policy, this coverage is extended only to the limits of the policy.

For example, if you have $10,000 in property damage coverage and total someone else's $25,000 car, you'll be on the hook for the other $15,000. You'll likely also have to pay a car insurance deductible or an amount you're responsible for paying yourself before your coverage kicks in.

What it doesn't cover

This type of policy only insures your liability. It is not full insurance coverage and does not extend to anyone else in the vehicle with you. For instance, if you get in an accident and a family member requires hospitalization, your insurance provider may not cover bodily injury and medical costs. And if you let someone else drive your car, it won't be insured under your policy, either.

Broad form coverage also doesn't extend to your own injuries or the vehicle you're driving. Collision coverage isn't included, which means damage to the car you're driving is your responsibility. Similarly, comprehensive coverage, which could protect you financially from non-collision incidents outside your control, like hitting a deer or hail, isn't included. 

Who is broad form insurance right for?

Broad form auto insurance could be a good fit for people who only drive by themselves and want to save money on car insurance above everything else. If you ever drive with anyone else in the car, this type of insurance could put you at risk. You might need to pay for damages if you get in an accident and your passenger gets injured.

When considering broad form car insurance, it's also important to consider the car you're driving. If you drive an old, low-value car, this type of coverage might be adequate. This is especially true if you can afford to replace the vehicle yourself. Driving a more expensive car or one you don't own could cause issues if you damage the car and can't afford to repair it.

Considering your financial situation is also essential. Broad form insurance might open you up to a significant risk of loss. If you have no assets, this may be a minimal risk. However, those with substantial amounts of money saved or invested might put those assets at risk by choosing this form of coverage.

Pros and cons of broad form insurance

Pros

• Lower premiums: Broad form coverage often has lower premiums than full coverage car insurance, which typically includes comprehensive, collision, and liability insurance.
• Could meet minimum insurance requirements: The coverage could meet the minimum insurance requirements in certain states.

Cons

• Less coverage: Broad form generally offers much less coverage than a standard policy.
• Might not meet state requirements: This type of policy might not meet the car insurance requirements of your state.
• Could result in high costs to you: If you get in an accident, you could end up having to pay out of your own pocket to replace your car or pay for injuries to others in your vehicle.

FAQs

Bottom line

Those wondering how to lower car insurance premiums may have come across broad form car insurance. However, this type of coverage can be risky because it's truly a bare-bones option.

Remember, broad form insurance might not meet your state's minimum car insurance coverage requirements. If it doesn't, it likely isn't an option for you.

Those interested in alternative coverages might consider contacting one of the companies on our list of best car insurance companies. Comparing auto insurance quotes from top providers could help you get the coverage options you need at a cost that works for your budget.