The Words on Your Policy, Translated

Minimum-limits policies are described in the same vocabulary as every other policy, which is not always helpful. These are the terms that matter most when what you carry is the legal floor.

The limits

30/60/15. Shorthand for California's statutory minimum liability limits under Insurance Code section 11580.1b — 30,000 dollars per injured person, 60,000 dollars per accident for injuries, 15,000 dollars for property damage.

Split limits. Liability expressed as separate figures for per-person injury, per-accident injury and property damage — the way California minimums are written.

Per person. The ceiling for any one individual's injury claim.

Per accident. The ceiling for all injury claims from one occurrence combined. Both this and the per-person figure apply at once.

Exhausted limits. The point at which the policy has paid its maximum. Beyond it, the claim continues against you personally, and the insurer's defense obligation generally ends.

The coverages

Bodily injury liability. Pays for injuries you cause to others.

Property damage liability. Pays for damage you cause to others' property — vehicles, fences, buildings, anything.

Liability-only. A policy with no coverage for your own vehicle. What most minimum policies are.

Comprehensive. Covers your own vehicle for theft, weather, fire, vandalism, animal strikes and glass. Optional unless a lender requires it.

Collision. Covers your own vehicle for collision damage regardless of fault. Optional unless a lender requires it.

Uninsured / underinsured motorist. Covers you when the at-fault driver has no coverage or not enough. Must be offered in California; a rejection must be in writing.

Medical payments. Pays medical costs for you and your passengers regardless of fault, up to a chosen limit.

The legal terms

Financial responsibility. The legal obligation to be able to answer for damage you cause. Insurance is the usual way of meeting it.

Evidence of financial responsibility. The proof you must carry and present on demand under Vehicle Code section 16028. Usually your insurance card.

SR-1. The DMV accident report required under Vehicle Code section 16000 for accidents meeting the section's criteria.

SR-22. A certificate an insurer files with the DMV confirming that required liability coverage is in force.

Lapse. A period with no policy in force. Affects your pricing for years and can affect your registration.

The policy mechanics

Declarations page. The summary of your policy — who, what, limits, premium. The document to read.

Deductible. Subtracted from a comprehensive or collision payment. Applies per claim, set per vehicle. Not applicable to liability coverage.

Named insured. The person the policy is issued to.

Listed driver. Someone named on the policy as a driver of the covered vehicles.

Named driver exclusion. A formal removal of a person from coverage. Lowers the premium; means coverage may not respond if they drive.

Permissive use. Coverage for someone driving your car with your permission. Terms vary by policy.

Lienholder / loss payee. A lender with a financial interest in the vehicle, listed on the policy and generally requiring physical damage coverage.

Force-placed insurance. Coverage a lender buys when it believes yours has lapsed. Typically expensive and protects the lender, not you.

The phrase to be careful with

"Full coverage." Not a product and not a defined term. Usually means liability plus comprehensive and collision, but with no agreement about limits or deductibles. Always ask for the specific coverages and figures instead.

If a term on your policy is not here, ask us — we would rather explain it than have you guess at what you are carrying.