Broad form auto insurance – When you buy a new car you will be automatically asked to have auto insurance because it aims to prevent any damage to your car when there is something unpredicted happen. Some insurance companies have wide range of insurance policy that you can choose from but you may not satisfied with certain policy since they don’t cover what you need to protect. Thus, there is broad form auto insurance to address your problem. Actually, what is broad form insurance? Here, we will discuss it for you.
About Broad Form Insurance
The term broad form in the insurance industry can have different meaning. Generally, broad form refers to those policies that offer broader range of coverage compare to the basic insurance policy.
If the basic insurance policy only cover certain losses that is mentioned in the policy, broad form insurance can deal with problems that are not mentioned in the basic policy such as damage caused by tree branches, falling object, weight of snow. Etc.
In auto insurance, broad form insurance is very useful for you especially when you have business that use vehicle as the main transportation to deliver your product.
Your business should buy broad form auto insurance because it allows you to named individual to use any company vehicles without restricting to one vehicle only.
The perils covered by broad form auto insurance are varying and it depends on the types of policies chosen by the customers. Some insurance companies exclude high-risk policies in broad insurance because they offer special form of insurance that can cover what is not mentioned on both, basic and board form insurance. Broad auto insurance usually cost 5 to 10 percent than the basic policy.
Broad Form Auto Insurance: Some Consideration Before You Buy
Every decision that you take will always related to certain risk. Therefore, you need to consider it carefully before you buy broad form auto insurance. Actually, broad form insurance is not for everyone because it is suitable for those people who live alone.
However, it doesn’t close the possibility for you to have this kind of insurance. Here are some considerations of possible risk that may appear from broad form insurance.
First, broad form insurance usually only contains liability coverage so that it will prevent you from getting appropriate coverage when you are involved in accident that cause massive injury.
Thus, you will suffer financial loss because the insurance company won’t address your problem. Second, if you plan to save your money in insurance, broad form insurance is not always a good option.
This type of insurance has bad report from many customers because it usually ends up in court that cost a lot of money for settlements. Moreover, broad insurance is also has certain restriction. That’s why; broad form insurance is also called as restrictive form.
Tips to Buy Broad Form Insurance
After knowing the risk that may include in your policy, now it’s time for you to make a decision. If your decision is keep buying broad form for auto insurance, you should know how to buy it correctly.
You can go online to find out whether your states available for broad form insurance or not. After that, you can go online and find the best rate by making several comparisons. You can make a comparison by entering your zip code in your area.
After you enter zip code, several insurance providers will appear and you can start to find the best broad form auto insurance that will likely give you more comfortable feeling since you don’t need to worry about your car protection again.