When you buy car insurance, you have to consider costs, and it’s no secret that everyone wants to pay as low a price as possible for their coverage. However, if you simply say you want to buy the cheapest policy on the market, then you might sell yourself short. The cheapest policies often contain the lowest levels of coverage, and without more benefits, you might find yourself with very little coverage available in case you file a claim.
Why You Need Expanded Benefits 
Car insurance premiums vary widely from driver to driver. However, on average, a full-coverage auto policy costs about $1,674 per year, based on the nationwide average. A minimum coverage policy, on the other hand, only costs about $565 per year. However, by buying only a minimum policy, you will only be getting a minimum amount of coverage.
A minimum-coverage auto policy is defined only as the coverage that is required of you by your state of residence. Though mandatory auto insurance laws vary by state, most require registered drivers to carry liability insurance. It is this coverage that will pay for third-party bodily injuries or property damage when the insured driver is at fault for an accident.
While the minimum liability insurance required of you is enough to let you drive legally, it often leaves a lot to be desired in terms of coverage itself. With a liability-only policy:
There is no coverage for damage to your vehicle. If you cause an accident, you could suffer significant loss to your car. You would have to pay for repairs on your own.
If someone steals your car, you have no financial support available to replace it. Keep in mind that the most stolen vehicles are everyday cars.
You have no help if lightning strikes your car and causes a significant fire. In this case, you may have no way to pay for the damage.
You have no protection against uninsured drivers. Perhaps someone strikes your car with their vehicle, but they do not have insurance. You may be able to pay to sue them, but it will take a long time to recoup a damage settlement through this process.
Additionally, with only the minimum liability coverage, you have limited coverage for injuries or property damage to others. There is no guarantee that the coverage limits within your policy will pay for 100% of the costs of a third party’s losses. Therefore, even by having coverage, you could still be on the line to pay for someone else’s costs.
As a result, it’s more responsible of you to pay for higher levels of auto insurance, rather than to face damage costs for which you don’t have coverage. On one hand, yes, you will pay more. On the other hand, however, you will pay a lot less for coverage than you would pay for an underinsured claim. Therefore, it’s much more budget-friendly to invest in balanced coverage overall.