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. La Canada Flintridge drivers should consider 100/300 given I-210 corridor exposure.
- Source: CA Insurance Code §11580.1b
- Property damage liability
- Property damage liability pays to repair or replace other vehicles and property when you are at fault. California minimum is $5,000 per accident; most advisors recommend $100,000+ for households with significant personal assets in LA County.
- Source: CA Insurance Code §11580.1b
- Comprehensive coverage
- Comprehensive coverage pays for vehicle damage from non-collision events — fire, theft, flood, hail, falling objects, and wildfire smoke. Especially relevant for La Canada Flintridge given Angeles National Forest proximity and documented station-fire risk in the 91011 ZIP area.
- Source: NAIC Auto Insurance Guide
- Collision coverage
- Collision coverage pays to repair or replace your vehicle after a collision regardless of fault. Required by most lenders. Deductibles typically run $500, $1,000, or $1,500. Higher deductibles reduce premium but increase out-of-pocket cost after any claim.
- 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 has approximately 16.6% uninsured driver rate (NAIC 2024). UM/UIM coverage is critical for I-210 and Foothill Blvd exposure in La Canada Flintridge.
- Source: NAIC 2024
- Good-driver discount
- The good-driver discount is a California mandatory 20% credit for drivers licensed 3+ years with no at-fault accidents and no more than one DMV point. Every CA carrier must offer it under Proposition 103 per Insurance Code §1861.025. Never skip verification at renewal.
- Source: CA Insurance Code §1861.025
- SR-22
- An SR-22 is a state-required certificate of financial responsibility filed by a carrier with CA DMV to prove minimum liability coverage is active. Required after DUI, uninsured at-fault accidents, or license suspensions per CA Vehicle Code §13352. Not common in La Canada Flintridge but relevant for household members.
- Source: CA Vehicle Code §13352
- Territory rating
- Territory rating means CA carriers file different base premium rates for different geographic ZIP zones with the CA DOI. ZIP 91011 has its own territory factor reflecting LA County foothill claim frequency, wildfire exposure, and I-210 corridor data.
- Source: CA DOI rate filing rules (Prop 103)
- Multi-policy discount
- A multi-policy discount is a credit earned by bundling two or more insurance products — typically home + auto or two vehicles — with one carrier. In La Canada Flintridge where homeownership is near-universal, this discount is almost always applicable and averages 8-15%.
- Source: CA DOI consumer guide
- Declarations page
- The declarations page is the policy summary showing coverage limits, deductibles, premium, covered vehicles, listed drivers, and effective dates. Comparing declarations pages across carriers is the only reliable way to verify equivalent coverage at a lower price.
- Source: NAIC Consumer Guide
- Named driver exclusion
- A named driver exclusion formally removes a specific household member from all coverage under a policy. In California, excluded drivers are never covered. Used to remove high-risk household members from preferred-rate policies. Creates coverage gap if excluded driver ever operates the vehicle.
- Source: CA Insurance Code
- Underinsured motorist coverage
- Underinsured motorist (UIM) coverage pays the gap when an at-fault driver has insurance but not enough to cover your medical expenses. Particularly relevant on I-210 and Foothill Blvd where high-speed collisions can generate large medical bills.
- Source: CA Insurance Code §11580.2
