12 terms every California driver should understand before comparing quotes. Each definition cites its authoritative source.
- Bodily injury liability
- Bodily injury liability pays medical expenses and legal costs when you are at fault in an accident injuring another person. California requires minimum limits of $15,000 per person and $30,000 per accident under Insurance Code §11580.1b. Most Calabasas households with assets above $50K should consider limits of $100K/$300K or higher.
- Source: CA Insurance Code §11580.1b
- Property damage liability
- Property damage liability pays for the other party's vehicle or property repair when you are at fault. California requires a minimum of $5,000 per accident — inadequate for most Calabasas vehicle values. Recommended minimum in high-income LA County markets is $50K–$100K.
- Source: CA Insurance Code §11580.1b
- Collision coverage
- Collision coverage pays to repair or replace your vehicle after a collision with another car or object, regardless of fault. Required by most Calabasas vehicle lenders. Standard deductibles: $500 or $1,000.
- Source: NAIC Auto Insurance Guide
- Comprehensive coverage
- Comprehensive (other-than-collision) coverage pays for vehicle damage from theft, fire, flood, hail, falling objects, wildfire embers, and animal strikes. Particularly relevant for Calabasas 91302 households near Malibu Creek State Park wildfire zones.
- Source: NAIC Auto Insurance Guide
- Uninsured motorist coverage
- Uninsured motorist (UM) coverage pays your medical expenses when an at-fault driver has no insurance. California's statewide uninsured driver rate is approximately 16.6% (NAIC 2024), making UM coverage a practical add-on even when optional.
- Source: NAIC 2024
- SR-22
- An SR-22 is a state-required certificate of financial responsibility — not a policy itself — that a carrier files with California DMV to prove minimum liability coverage. Required after DUI, at-fault accidents without insurance, or license suspension per CA Vehicle Code §13352. Must be maintained continuously for 3 years.
- Source: CA DMV / CA Vehicle Code §13352
- Good-driver discount
- The good-driver discount is a California mandatory credit of at least 20% for drivers licensed 3+ years with no at-fault accidents and no more than one DMV point. Required under Proposition 103 (CA Insurance Code §1861.025). Every California carrier must offer it; none can refuse it to eligible drivers.
- Source: CA Insurance Code §1861.025
- Territory rating
- Territory rating is the practice of filing different base premium rates for different ZIP code zones with the California DOI under Prop 103. Two Calabasas households in ZIPs 91301 and 91302 with identical driver profiles can receive different quotes because their territories have different filed claim-frequency data.
- Source: CA DOI rate filing rules
- Named driver exclusion
- A named driver exclusion is a policy endorsement formally excluding a specific household member from coverage. Excluded drivers are not covered under any circumstance in California. Carriers use exclusions to avoid pricing a high-risk household driver into a preferred-rate Calabasas policy.
- Source: CA Insurance Code
- Lapse in coverage
- A lapse is any period — even one day — when a California-required insured vehicle had no active policy. Lapses appear on carrier loss-run reports (CLUE) and can increase premiums, narrow carrier appetite, or trigger SR-22 requirements. Calabasas lease-to-lease transitions are a common lapse source.
- Source: CA DOI
- Declarations page
- The declarations page (dec page) is the policy summary document showing coverage limits, deductibles, premium, covered vehicles, listed drivers, and effective dates. Comparing dec pages across carriers is the most reliable way to verify equivalent coverage at a lower price.
- Source: NAIC Consumer Guide
- Actual Cash Value (ACV)
- ACV is the vehicle's fair market value immediately before a total-loss event, calculated as replacement cost minus depreciation. A Calabasas vehicle worth $8,000 ACV may not justify $80/mo in collision + comprehensive premiums ($960/year) if the payout minus deductible would be $7,500.
- Source: NAIC / CA DOI
