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. \u201cBI,\u201d \u201cPD,\u201d \u201cUM\/UIM,\u201d \u201cCOMP,\u201d \u201cCOLL,\u201d \u201cDed,\u201d \u201cInsured Rejects.\u201d Each line decides who pays for what, and one wrong assumption can leave you paying for repairs out of your own pocket.<\/p>\n\n\n\n
We see it often. One client was hit by a driver with no insurance. He wasn’t worried about his car because he \u201chad comprehensive coverage.\u201d But Comprehensive doesn’t cover crashes with other cars. Collision does, and he had never bought it. His policy also showed \u201cInsured Rejects\u201d next to Uninsured Motorist Property Damage. He had no coverage for his own car at all.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Below is a sample coverage summary laid out like a real declarations page. Find each line on your own policy and compare.<\/p>\n\n\n\n
Policy Declarations \u00b7 Coverage Summary<\/p>\n\n\n\n
Sample personal auto policy. Limits shown are examples only.<\/p>\n\n\n\n *Coverage applies only where a premium or $0.00 is shown for a vehicle. A dash (\u2013) or \u201cInsured Rejects\u201d means you do not<\/strong> have that coverage.<\/p>\n\n\n<\/div>\n\n\n\n An easy way to remember it: Collision is for crashes. Comprehensive is for everything else.<\/strong><\/p>\n\n\n\n California has one of the highest rates of uninsured drivers in the country. If one hits you, here is what typically pays:<\/p>\n\n\n\nCoverage<\/th> What It Pays For<\/th> What It Does NOT Pay For<\/th> Example Limit<\/th> In California<\/th><\/tr><\/thead> Bodily Injury Liability<\/strong>
Also called: BI, BIL, Liability \u2013 Bodily Injury<\/span><\/td>Injuries you cause to other people<\/strong>: their medical bills, lost wages, pain and suffering, and your legal defense if you’re sued.<\/td> Your own injuries, or your own car.<\/td> $100,000\/$300,000<\/td> Required. California minimum is $30,000\/$60,000.<\/td><\/tr> Property Damage Liability<\/strong>
Also called: PD, PDL, Liability \u2013 Property Damage<\/span><\/td>Damage you cause to someone else’s property<\/strong>: their car, a fence, a building, a light pole.<\/td> Damage to your own vehicle.<\/td> $50,000<\/td> Required. California minimum is $15,000.<\/td><\/tr> Uninsured \/ Underinsured Motorist Bodily Injury<\/strong>
Also called: UM, UIM, UM\/UIM, UMBI, UNIN\/UNDER<\/span><\/td>Your injuries<\/strong> (and your passengers’) when the at-fault driver has no insurance, not enough insurance, or is a hit-and-run driver.<\/td> Damage to your car (see UMPD and Collision).<\/td> $30,000\/$60,000<\/td> Insurers must offer it. You can only reject it in writing.<\/td><\/tr> Uninsured Motorist Property Damage<\/strong>
Also called: UMPD<\/span><\/td>Damage to your car<\/strong> caused by an identified<\/em> uninsured driver.<\/td> Hit-and-run where the driver is unknown. Usually not available if you already carry Collision.<\/td> $3,500<\/td> Capped at $3,500 in California. Often marked \u201cInsured Rejects.\u201d<\/td><\/tr> Collision<\/strong>
Also called: COLL, Physical Damage \u2013 Collision<\/span><\/td>Damage to your car<\/strong> from hitting another vehicle or object, or from a rollover, no matter who is at fault<\/strong>, minus your deductible.<\/td> Theft, weather, fire, animals, vandalism (that’s Comprehensive). Injuries.<\/td> $1,000 Ded<\/td> Optional by law, but usually required by your lender or lease.<\/td><\/tr> Collision Deductible Waiver<\/strong>
Also called: CDW, Waiver, \u201cDed\/Waiver\u201d<\/span><\/td>Waives your Collision deductible when an identified<\/em> uninsured driver is at fault.<\/td> Accidents where the other driver is insured or unidentified.<\/td> $1,000 Ded\/Waiver<\/td> Only works if you have Collision coverage.<\/td><\/tr> Comprehensive<\/strong>
Also called: COMP, Other Than Collision (OTC), Physical Damage \u2013 Comprehensive<\/span><\/td>Damage to your car<\/strong> from things other than a crash<\/strong>: theft, vandalism, fire, flood, falling objects, hitting an animal, broken glass.<\/td> Crashes with another car or object.<\/strong> This is the most common mix-up.<\/td> $500 Ded<\/td> Optional, but usually required by lenders.<\/td><\/tr> Medical Payments<\/strong>
Also called: MedPay, Med Pay, Auto Medical<\/span><\/td>Medical bills for you and your passengers<\/strong> after an accident, regardless of fault<\/strong>, up to a small limit.<\/td> Lost wages, pain and suffering, the other driver’s injuries.<\/td> $5,000<\/td> Optional. Pays fast, before fault is decided.<\/td><\/tr> Rental Reimbursement<\/strong>
Also called: Transportation Expense, Rental Car Coverage<\/span><\/td>A rental car while your car is being repaired after a covered<\/strong> claim.<\/td> Rentals when the damage itself isn’t covered.<\/td> $35 Per Day \/ $1,050 Max<\/td> Optional. Usually requires Collision or Comprehensive.<\/td><\/tr> Emergency Road Service<\/strong>
Also called: ERS, Towing & Labor, Roadside Assistance<\/span><\/td>Towing, jump-starts, lockouts, flat tires, fuel delivery.<\/td> Repairs to the car itself.<\/td> Full<\/td> Optional.<\/td><\/tr> Mechanical Breakdown<\/strong>
Also called: MBI, Mechanical Breakdown Insurance<\/span><\/td>Repairs for mechanical failures that aren’t from an accident, like the engine or transmission.<\/td> Accident damage, wear-and-tear items, routine maintenance.<\/td> $250 Ded<\/td> Optional. Usually only for newer vehicles.<\/td><\/tr> Gap \/ Loan or Lease Payoff<\/strong>
Also called: GAP, Loan\/Lease Gap, Payoff Coverage<\/span><\/td>The difference between your car’s value and what you still owe if the car is totaled or stolen.<\/td> Your deductible, overdue payments.<\/td> Up to loan balance<\/td> Optional. Valuable for new or financed cars.<\/td><\/tr> Rideshare Endorsement<\/strong>
Also called: TNC Coverage, Rideshare Gap<\/span><\/td>Fills the gap while you’re driving for Uber or Lyft and waiting for a ride request.<\/td> Personal policies often exclude rideshare driving without it.<\/td> Varies<\/td> Optional. Important for rideshare drivers.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n How to Read the Numbers<\/h2>\n\n\n\n
\n
Comprehensive vs. Collision: The Costly Mix-Up<\/h2>\n\n\n\n
Collision covers<\/h3>\n\n\n\n
\n
Comprehensive covers<\/h3>\n\n\n\n
\n
If You’re Hit by an Uninsured Driver<\/h2>\n\n\n\n
\n
Coverage Worth Reviewing With Your Agent<\/h2>\n\n\n\n