Most drivers buy auto insurance, sign the papers, and never read the coverage page again until after a crash. That’s when the confusing abbreviations start to matter. “BI,” “PD,” “UM/UIM,” “COMP,” “COLL,” “Ded,” “Insured Rejects.” Each line decides who pays for what, and one wrong assumption can leave you paying for repairs out of your own pocket.
We see it often. One client was hit by a driver with no insurance. He wasn’t worried about his car because he “had comprehensive coverage.” But Comprehensive doesn’t cover crashes with other cars. Collision does, and he had never bought it. His policy also showed “Insured Rejects” next to Uninsured Motorist Property Damage. He had no coverage for his own car at all.
This guide walks through every common coverage you’ll see on a policy, what each one really pays for, and the different names insurance companies use for the same thing.
Your Coverage Page, Explained
Below is a sample coverage summary laid out like a real declarations page. Find each line on your own policy and compare.
Policy Declarations · Coverage Summary
Sample personal auto policy. Limits shown are examples only.
| Coverage | What It Pays For | What It Does NOT Pay For | Example Limit | In California |
|---|---|---|---|---|
| Bodily Injury Liability Also called: BI, BIL, Liability – Bodily Injury | Injuries you cause to other people: their medical bills, lost wages, pain and suffering, and your legal defense if you’re sued. | Your own injuries, or your own car. | $100,000/$300,000 | Required. California minimum is $30,000/$60,000. |
| Property Damage Liability Also called: PD, PDL, Liability – Property Damage | Damage you cause to someone else’s property: their car, a fence, a building, a light pole. | Damage to your own vehicle. | $50,000 | Required. California minimum is $15,000. |
| Uninsured / Underinsured Motorist Bodily Injury Also called: UM, UIM, UM/UIM, UMBI, UNIN/UNDER | Your injuries (and your passengers’) when the at-fault driver has no insurance, not enough insurance, or is a hit-and-run driver. | Damage to your car (see UMPD and Collision). | $30,000/$60,000 | Insurers must offer it. You can only reject it in writing. |
| Uninsured Motorist Property Damage Also called: UMPD | Damage to your car caused by an identified uninsured driver. | Hit-and-run where the driver is unknown. Usually not available if you already carry Collision. | $3,500 | Capped at $3,500 in California. Often marked “Insured Rejects.” |
| Collision Also called: COLL, Physical Damage – Collision | Damage to your car from hitting another vehicle or object, or from a rollover, no matter who is at fault, minus your deductible. | Theft, weather, fire, animals, vandalism (that’s Comprehensive). Injuries. | $1,000 Ded | Optional by law, but usually required by your lender or lease. |
| Collision Deductible Waiver Also called: CDW, Waiver, “Ded/Waiver” | Waives your Collision deductible when an identified uninsured driver is at fault. | Accidents where the other driver is insured or unidentified. | $1,000 Ded/Waiver | Only works if you have Collision coverage. |
| Comprehensive Also called: COMP, Other Than Collision (OTC), Physical Damage – Comprehensive | Damage to your car from things other than a crash: theft, vandalism, fire, flood, falling objects, hitting an animal, broken glass. | Crashes with another car or object. This is the most common mix-up. | $500 Ded | Optional, but usually required by lenders. |
| Medical Payments Also called: MedPay, Med Pay, Auto Medical | Medical bills for you and your passengers after an accident, regardless of fault, up to a small limit. | Lost wages, pain and suffering, the other driver’s injuries. | $5,000 | Optional. Pays fast, before fault is decided. |
| Rental Reimbursement Also called: Transportation Expense, Rental Car Coverage | A rental car while your car is being repaired after a covered claim. | Rentals when the damage itself isn’t covered. | $35 Per Day / $1,050 Max | Optional. Usually requires Collision or Comprehensive. |
| Emergency Road Service Also called: ERS, Towing & Labor, Roadside Assistance | Towing, jump-starts, lockouts, flat tires, fuel delivery. | Repairs to the car itself. | Full | Optional. |
| Mechanical Breakdown Also called: MBI, Mechanical Breakdown Insurance | Repairs for mechanical failures that aren’t from an accident, like the engine or transmission. | Accident damage, wear-and-tear items, routine maintenance. | $250 Ded | Optional. Usually only for newer vehicles. |
| Gap / Loan or Lease Payoff Also called: GAP, Loan/Lease Gap, Payoff Coverage | The difference between your car’s value and what you still owe if the car is totaled or stolen. | Your deductible, overdue payments. | Up to loan balance | Optional. Valuable for new or financed cars. |
| Rideshare Endorsement Also called: TNC Coverage, Rideshare Gap | Fills the gap while you’re driving for Uber or Lyft and waiting for a ride request. | Personal policies often exclude rideshare driving without it. | Varies | Optional. Important for rideshare drivers. |
*Coverage applies only where a premium or $0.00 is shown for a vehicle. A dash (–) or “Insured Rejects” means you do not have that coverage.
How to Read the Numbers
- $100,000/$300,000 (Bodily Injury). The first number is the most the policy pays for one person’s injuries. The second is the most it pays for everyone hurt in one accident.
- 100/300/50. A short way to write all three liability limits: $100,000 per person, $300,000 per accident, and $50,000 property damage.
- Ded (Deductible). The part of a repair bill you pay before your insurance pays the rest. A $1,000 deductible on a $4,000 repair means you pay $1,000 and insurance pays $3,000.
- Insured Rejects. You signed a form turning that coverage down. You don’t have it.
- A dash (–). No coverage for that vehicle. Each vehicle on a policy can have different coverages, so check every column.
Comprehensive vs. Collision: The Costly Mix-Up
Collision covers
- Hitting another car, even if it’s your fault
- Being hit by an uninsured or hit-and-run driver
- Hitting a pole, wall, guardrail or curb
- Rollovers
Comprehensive covers
- Theft and vandalism
- Fire, flood, hail and falling trees
- Hitting a deer or other animal
- Broken windshields and glass
An easy way to remember it: Collision is for crashes. Comprehensive is for everything else.
If You’re Hit by an Uninsured Driver
California has one of the highest rates of uninsured drivers in the country. If one hits you, here is what typically pays:
- Your injuries: your Uninsured Motorist Bodily Injury (UM) coverage, plus Medical Payments if you have it.
- Your car, if you have Collision: your Collision coverage. With a Collision Deductible Waiver, your deductible may be waived if the uninsured driver is identified.
- Your car, if you don’t have Collision: Uninsured Motorist Property Damage (UMPD), up to $3,500, only if the uninsured driver is identified.
- No Collision and no UMPD: you may have to pay for repairs yourself and try to collect directly from the uninsured driver.
Coverage Worth Reviewing With Your Agent
- Liability limits above the minimum. California’s minimum of $30,000/$60,000/$15,000 rarely covers a serious injury or a newer car.
- UM/UIM limits that match your liability limits. UM protects you and your family, not the other driver.
- Collision, if you couldn’t easily afford to repair or replace your car.
- Medical Payments, for quick help with medical bills and health insurance deductibles.
- Gap coverage, if you owe more on your car than it’s worth.
Questions After an Accident?
Insurance companies don’t always explain what your policy covers, and the other driver’s insurer works for them, not for you. If you’ve been hurt in an accident, our office can review your policy and the other driver’s coverage, and help you understand every option for compensation. Call us at (408) 430 - 3225 or contact our office for a free consultation.
This article is for general information about California auto insurance and is not legal advice. Every policy is different, so always read your own policy and talk with an attorney about your specific situation.