Finding the right auto insurance policy to meet your needs can be a complicated process. Insurance companies and State Departments of Insurance are constantly looking for ways to offer affordable auto insurance. Every state has some form of mandatory minimum liability limits that require all drivers have enough insurance to cover the costs of accidents they may cause. A restricted auto insurance policy is one of the ways that you can gain more coverage without spending a fortune.
A restricted auto insurance policy, also known as a broad form policy, is the least expensive type of insurance available on the market. These types of auto insurance policies only provide liability insurance and will only cover one individual. While a traditional insurance policy offers coverage for the primary driver and others who may drive the vehicle, with a restricted auto insurance policy, if another driver has an accident in your vehicle, the insurance policy will not cover any damages.
Why might you need more coverage on a restricted auto insurance policy? Usually, life changes occur that make it necessary for restricted auto insurance policy holders to increase their coverage. If another member of your household is going to be driving your vehicle, it is important to contact your insurance provider and have them added to this policy. This does not necessarily mean that you will need to transform your restricted policy into a traditional full coverage policy. Instead, many insurance providers will allow you to add specific individuals or blood relatives who live in your household to your restricted policy. In this way you can add more coverage to insure specific drivers who will be operating your vehicle without moving to an all inclusive policy that will allow anyone to drive your vehicle and be covered in case of accident.
If you are looking to understand the exact nature of coverage under your restricted auto insurance policy, or are looking to add more coverage to your policy, the first step is to review the policy you have in place. You should contact your insurance provider and speak to either an agent or knowledgeable representative. This person should be able to answer all your questions about options for adding more coverage to your restricted auto insurance policy. You can also get answers from your insurance provider about how any additional coverage will affect your premiums.
Once you have discussed your options for adding more coverage and received a quote for the new policy, you should contact other insurance providers or brokers to evaluate if your current provider is still the best and most cost effective option to meet your restricted auto insurance coverage needs. If not, you may consider changing insurance providers.