What Does Broad Form Insurance Not Cover?

Broad form insurance can be an appealing option for drivers looking to save money on coverage, but understanding its limitations is important. While it provides liability coverage for the policyholder, this type of insurance comes with significant exclusions that may leave gaps in protection.

What are these gaps—in other words, what exactly does broad form insurance not cover? This guide will clarify what it doesn’t cover so that you can make an informed decision about your insurance needs.

Damage to Your Own Vehicle

Broad form insurance does not provide coverage for damage to your own vehicle under any circumstances. This means that if you’re at fault in an accident or if your vehicle is damaged in other scenarios such as vandalism, then you’ll have to bear the full cost out of pocket. For drivers who rely solely on broad form insurance, this lack of protection can lead to serious financial strain, especially if your vehicle is essential for daily activities.

Coverage for Other Drivers

A major limitation of broad form insurance is that it provides coverage only for the policyholder while they are driving. If someone else borrows your vehicle and causes an accident, your broad form policy won’t cover any damages or liabilities.

This can pose a large risk, especially for households in which multiple people share vehicles or if you lend your vehicle to friends or family members. Without coverage for other drivers, you may be left financially and legally responsible for any incidents they cause while using your vehicle.

Comprehensive Coverage

Broad form type of insurance also excludes coverage for non-collision incidents such as theft, fire, natural disasters, or falling objects. This means that if your car is stolen, damaged by a flood, or hit by a tree branch during a storm, you will have no financial protection under your policy. Comprehensive coverage is often critical for mitigating unexpected and uncontrollable risks, and its absence in broad form insurance could result in costly repairs or complete vehicle loss.

Medical Payments or Personal Injury Protection

Broad form insurance usually excludes medical payments or personal injury protection (PIP), which covers medical expenses for you and your passengers following an accident. Without this coverage, you’ll have to pay any medical bills out of pocket. Considering the high cost of medical care, this can quickly become a heavy burden, especially if the injuries require long-term treatment or rehabilitation.

Uninsured or Underinsured Motorist Coverage

If you’re involved in an accident caused by a driver who is uninsured or underinsured, broad form insurance offers no financial protection for damages or medical expenses. This can leave you in the difficult position of having to cover the costs of medical bills or repairing your vehicle, even if the other driver was entirely at fault. Uninsured or underinsured motorist coverage is essential for protecting yourself against this type of situation, but it is not included in broad form insurance policies.

Rental Car Coverage

Another important limitation of broad form insurance is that it typically does not cover rental cars. If you need to rent a vehicle—whether for personal use or while your own vehicle is at the repair shop—you may find that your policy does not extend coverage to the rented vehicle. This means that you would have to pay for any damages to the rental or for liability coverage out of pocket, unless you were to purchase additional coverage from the rental company. Be sure to check your policy or consult your insurance provider to understand your options for rental car coverage.

Business or Commercial Use of Your Vehicle

Broad form insurance is primarily designed for personal use, meaning it does not cover any business or commercial activities involving your vehicle. For instance, if you use your vehicle for rideshare services, food delivery, or another business purpose, a broad form policy won’t cover any accident that occurs during these activities. If your vehicle plays a role in your business, exploring specialized commercial auto insurance is essential to properly protecting your vehicle, yourself, and others.

Damage to Property Inside Your Vehicle

Auto insurance typically covers damage to your vehicle, but a broad form policy won’t protect any personal property inside it. If items such as laptops, phones, or tools are stolen from your car, this type of policy won’t cover the loss. To ensure protection for your belongings, consider renters’ or homeowners’ insurance, which often includes coverage for personal items, whether they’re inside your vehicle or elsewhere. Taking this extra step can provide peace of mind and safeguard your valuable possessions.

Towing and Roadside Assistance

People are often surprised to find that roadside assistance is not covered in their broad form insurance policies. If your vehicle breaks down or you become stranded on the side of the road, broad form insurance won’t cover towing or roadside assistance costs. Services such as jump-starts, flat-tire changes, or towing to a repair shop also aren’t included under this type of policy. Many drivers choose to add roadside assistance as a supplemental coverage or obtain it through memberships with organizations such as AAA for peace of mind in emergencies.

Claims for Emotional Distress or Lost Wages

Broad form insurance is limited in its scope, and it typically doesn’t cover claims for emotional distress or lost wages following an accident. For instance, if an accident leaves you unable to work or causes significant emotional hardship, you would not receive compensation for those losses under this policy. To safeguard against these potential financial challenges, additional coverage or a more comprehensive auto insurance policy may be necessary.

Choosing the right insurance policy is important, and understanding the limitations of broad form insurance is the key to ensuring you’re adequately protected. While it may be a cost-effective option for some drivers, the gaps in coverage mean it’s not the right fit for everyone.

For personalized guidance and to find out if this option suits your needs, reach out to Serenity Group. Our knowledgeable team can help you explore your options and offer you a comprehensive broad form insurance quote, ensuring you make an informed, confident choice.