Glossary

AB60

California Assembly Bill 60, codified at Vehicle Code §12801.9. Allows California residents to obtain a driver license without proving legal presence. The card reads “Federal Limits Apply” on the front. AB60 is valid for driving, vehicle registration, and buying insurance. It is not valid for TSA, federal buildings, or REAL ID. More: AB60 page.

Coverage A (Dwelling)

On a homeowners policy, Coverage A is the dollar amount the carrier will pay to rebuild the structure of your home after a covered loss. It should equal rebuild cost (materials plus labor plus demolition), not market value or what you paid for the house. For most OC homes in 2026, rebuild runs $400 to $600 per square foot.

Coverage C (Personal Property)

On a homeowners policy, Coverage C is the amount available to replace your belongings (furniture, electronics, clothing, kitchen contents) after a covered loss. Usually 50 to 70% of Coverage A. Standard policies cap jewelry, art, and firearms at low limits. Schedule those items separately if their value exceeds the cap.

Coverage E (Liability)

On a homeowners policy, Coverage E pays for bodily injury or property damage to others for which you're legally responsible. Standard limits are $100,000 to $300,000. We recommend at least $300,000, and adding a $1 million umbrella for households with any real assets.

CSR (Cost-Sharing Reductions)

On Covered California Silver-tier health plans, CSR is an extra discount on deductibles and out-of-pocket costs for households below ~250% of federal poverty level. It only applies to Silver plans. One reason Silver is the math winner for moderate-income households on the ACA marketplace.

Deductible

The amount you pay out of pocket before the insurance carrier starts paying. Higher deductible means lower premium and vice versa. Standard auto comprehensive and collision deductibles are $500 to $1,000. Standard home deductibles are 1% of dwelling coverage. Health plan deductibles vary widely by tier.

FAIR Plan (California)

The California Fair Access to Insurance Requirements Plan. The state's carrier of last resort for homeowners insurance when no admitted carrier accepts the property (usually due to wildfire risk). FAIR Plan covers fire-only; pair it with a difference-in-conditions (DIC) wraparound policy from a separate carrier to fill the gap. More: homeowners page.

Garaging address

The address where your vehicle is parked overnight, not your mailing address. Carriers use the garaging address (ZIP code specifically) to rate your auto premium. Telling the carrier the wrong garaging address can void the policy at claim time.

ITIN (Individual Taxpayer Identification Number)

IRS-issued tax ID number for people not eligible for SSN but with U.S. tax obligations. Obtained via Form W-7. Most non-standard auto carriers in California (Bristol West, Aspire General, Kemper) accept ITIN as the tax-ID on file when underwriting AB60 drivers.

Liability (split limits like 30/60/15)

On an auto policy, the three numbers are: bodily injury per person, bodily injury per accident, property damage per accident, all in thousands. So 30/60/15 means $30,000 per person, $60,000 per accident, $15,000 property damage. This is California's minimum as of January 1, 2025 under SB 1107. Most households should carry higher (100/300/100 is a common upgrade).

MAGI (Modified Adjusted Gross Income)

The income figure Covered California uses to calculate premium tax credit (subsidy) eligibility. For most households it's your tax return adjusted gross income plus tax-exempt interest. Report changes within 30 days to keep subsidies accurate.

MedPay (Medical Payments)

Auto insurance coverage that pays your medical bills after an accident regardless of fault. Typically $5,000 to $10,000. Cheap (around $5 to $10 a month) and covers deductibles and gaps before health insurance kicks in. We default to including it.

Named-driver exclusion

A formal exclusion on an auto policy that removes coverage for a specific household member when they drive a particular vehicle. Used when one household member shouldn't be insured (poor record, age) but other household members need full coverage. Allowed by Mercury and Bristol West in California. Common in Vietnamese-American multi-generational households.

Non-owner SR-22

An SR-22 policy for drivers who do not own a vehicle. Provides liability coverage when you drive someone else's car or a rental, and satisfies the DMV 3-year filing requirement. Cheaper than an owned-vehicle SR-22 policy. More: non-owner SR-22 page.

Order to Comply

Form issued by California DMV requiring you to file SR-22 (or a similar financial responsibility certification) to restore or keep your driving privileges. Usually issued after DUI conviction, no-insurance accident, or excessive point accumulation. Bring it to any SR-22 quote conversation.

Proposition 103 (California)

California Insurance Code provision capping how insurers can rate auto policies. The three mandatory rating factors are: driving record, years of experience, and annual mileage. Credit score is allowed as a secondary factor only. ZIP, vehicle, and other factors can be used but weight is limited.

SR-22

A Certificate of Financial Responsibility filed electronically by your insurance carrier with California DMV proving you carry at least the state-minimum liability. Required for 3 continuous years after DUI, no-insurance accident, or DMV Order to Comply. Most standard carriers won't file SR-22; you need a non-standard specialist. More: SR-22 page.

SR-26

The form your insurance carrier sends to California DMV when an SR-22 policy is canceled or expires. Triggers DMV to potentially suspend your license again and reset the 3-year SR-22 clock. The reason you never let an SR-22 policy lapse.

TNC endorsement

Transportation Network Company endorsement. An add-on to your personal auto policy covering the gap when you have a rideshare app on (Uber, Lyft) but no passenger. Without it, your personal carrier could deny a claim during the “available for hire” window. Progressive and Mercury write TNC endorsements in California. More: commercial auto page.

UM/UIM (Uninsured/Underinsured Motorist)

Auto coverage that pays your medical bills and lost wages when the at-fault driver has no insurance or not enough. Per the IRC, 16.6% of California drivers are uninsured. We default to UM/UIM limits matching your liability limits (100/300 UM if you carry 100/300 liability).

Reviewed by Kevin Vu, CA DOI #4037122 · Last updated 2026-05-21