What All Those Letters Mean
Insurance documents are written in initials, largely because the coverage names are long. Here is the shorthand you will actually meet on a California auto policy, decoded. Keep it beside your declarations page.
The liability letters
| Short | Full name | What it does |
|---|---|---|
| BI | Bodily injury liability | Pays other people's injuries when you are at fault |
| PD | Property damage liability | Pays for other people's property you damage |
| CSL | Combined single limit | One shared limit instead of separate BI and PD buckets |
You will also see limits written as 30/60/15 — BI per person, BI per accident, PD per accident. California Insurance Code section 11580.1b sets those three as the legal minimum.
The uninsured-driver letters
| Short | Full name | What it does |
|---|---|---|
| UM / UMBI | Uninsured motorist bodily injury | Your injuries when an uninsured driver is at fault |
| UIM | Underinsured motorist | Your injuries when the at-fault driver's limit runs out |
| UMPD | Uninsured motorist property damage | Your vehicle, when an uninsured driver is at fault |
If any of these show "REJ" or "Rejected," you declined the coverage in writing at some point. That is reversible.
The your-own-car letters
| Short | Full name | What it does |
|---|---|---|
| COLL | Collision | Your vehicle, when you hit something |
| COMP / OTC | Comprehensive, or "other than collision" | Theft, fire, weather, glass, animals |
| MED / MPC | Medical payments | Fast medical cover for you and your passengers, regardless of fault |
| PIP | Personal injury protection | A no-fault-state coverage; not the standard California form |
Claim and valuation shorthand
- ACV — actual cash value. What the vehicle was worth immediately before the loss, which is what physical damage coverage pays.
- ALE — additional living expense. A homeowners term you may see on combined documents; it does not apply to auto claims.
- OEM — original equipment manufacturer parts, as opposed to aftermarket.
- LKQ — "like kind and quality," meaning a used or recycled part of comparable condition.
- SUBRO — subrogation. Your insurer recovering from the at-fault party's insurer after paying you.
- DEC — declarations page, the summary of what you carry.
Filing and regulatory shorthand
- SR-22 — a certificate an insurer files with the DMV proving you carry required coverage, when a filing has been ordered.
- DMV and CDI — the Department of Motor Vehicles and the California Department of Insurance. Different agencies with different jobs; the DMV handles licensing and registration, the CDI regulates insurers.
- PNO — planned non-operation, a DMV status for a vehicle that will not be driven.
Words that look like abbreviations but are not
A few terms cause as much confusion as the initials do.
- Endorsement. A form that changes the policy. It can add coverage or take it away, so it is not a synonym for "extra."
- Named insured. The person the policy is issued to, as distinct from other people who may be covered under it.
- Limit versus deductible. The limit is the ceiling on what the policy pays; the deductible is the first slice you pay yourself. They work at opposite ends of the same claim.
- Premium. What you pay for the policy. It is not a coverage, and it does not appear in a claim.
- Full coverage. Not a real product and not on any policy. It is shorthand people use, and different people mean different things by it.
How to use this page
Open your declarations page next to it and translate your own policy line by line. Anything you cannot decode from this list, ask your carrier about directly — and if a line shows "rejected" against a coverage you thought you had, that is worth a call today rather than at renewal.
The three lines most worth understanding first are your liability limits, your two deductibles, and whether uninsured motorist coverage shows a limit or a rejection. Those are the ones that change what happens to you.
Still looking at a line you cannot decode? Send it over and we will translate it.
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What does REJ mean next to uninsured motorist?
It means the coverage was declined in writing. It can be added back, usually mid-term, with a phone call to your carrier.
What is the difference between COMP and OTC?
Nothing — they are two names for the same coverage. 'Other than collision' is the more literal description of what it does.
What does ACV mean on a total loss?
Actual cash value: what the vehicle was worth just before the loss, not what you paid or what you still owe. Gap coverage exists because of that difference.