What Is the Difference Between Standard and Broad Form Collision?
Understand the distinctions between vehicle collision policies to choose the best protection for your car and finances.
Collision insurance is a component of an auto insurance policy that covers damage to your vehicle from a collision. This includes impacts with other vehicles or objects like a fence, tree, or pothole. It helps pay for repairs or replacement, up to your vehicle’s actual cash value, after a covered accident. While not always legally required, lenders often mandate collision coverage for financed or leased vehicles.
Understanding Standard Collision Coverage
Standard collision coverage protects your vehicle from accident damages. This coverage typically requires the policyholder to pay a deductible for every claim, regardless of who caused the accident. A deductible is the amount you pay out-of-pocket before your insurance covers the remaining repair or replacement costs. For example, if your vehicle incurs $3,000 in damages and you have a $500 deductible, you pay the initial $500, and your insurer covers the remaining $2,500, whether you are at fault or another driver is responsible. Standard collision coverage extends to single-vehicle incidents like rollovers or hitting a fixed object, and multi-vehicle accidents.
Understanding Broad Form Collision Coverage
Broad form collision coverage offers a different approach to how deductibles are applied. With this policy, the deductible can be waived under specific conditions, typically when the policyholder is not at fault. This means if another identifiable party is primarily responsible, you may not pay your deductible for vehicle repairs. The conditions for waiving the deductible often involve a determination of fault, where the policyholder is 50% or less responsible for the accident. If you are more than 50% at fault, the deductible applies, similar to standard collision coverage.
How Deductibles Apply to Each Type
The primary distinction between standard and broad form collision coverage lies in the deductible’s application. With standard collision, the deductible is consistently applied to any vehicle damage claim, regardless of who caused the accident. You are responsible for paying your chosen deductible amount before coverage activates.
In contrast, broad form collision offers a waived deductible when the policyholder is not at fault. For instance, if another driver rear-ends your vehicle and is at fault, a broad form policy would cover repair costs without you paying a deductible. If you are more than 50% at fault, the deductible applies to your broad form policy, similar to standard coverage. This difference can result in significant out-of-pocket savings in not-at-fault scenarios.
Cost and Where to Find These Policies
Broad form collision coverage generally carries a higher premium than standard collision coverage. This increased cost reflects the benefit of potentially not paying a deductible in not-at-fault accidents, transferring more financial risk to the insurer. Premium differences vary based on your driving record, vehicle type, and chosen deductible.
The availability of broad form collision coverage depends on the insurance provider and geographic location. While common in some regions, it may not be offered by all insurers or in all areas. Policyholders should inquire directly with providers to determine availability and suitability for their needs and budget.