CommerceCares
Access billing and previously reported claim information online anytime!
Online Services
Insurance 101 - Auto
Reading an insurance policy from front to back is not a common practice by most consumers; however, doing so will educate you on your policy terms and coverages so you can confirm that you’re receiving the protection you really need.
Insurance 101 is designed to help simplify the definitions of insurance terms commonly used in the business. We do encourage you to speak with an insurance agent to answer any of your questions or provide the additional information.
Open all | Close all
The value of the insured property, in dollars, at the time of loss. This amount is whatever it will cost to replace the property, minus a deduction for depreciation (age, wear and tear, etc.)
The person who handles the settlement of a claim on behalf of the insurance company, either as an employee of the company or an independent engaged by contract. Also known as a claim representative.
A legal agreement between an insurance buyer and an insurance company or its agent. It provides temporary insurance coverage until a policy is either issued or refused.
Injury to the body of a person as specifically defined in an insurance policy. Bodily injury liability is the legal responsibility for medical and related costs that may result from injury to the life or health of another person.
Liability Coverage which covers the injuries to others that you are deemed responsible for as the result of an at-fault accident.
The guarantee to pay if specific losses occur, according to the terms of the insurance policy.
The largest total amount the insurance company will pay for covered losses. Many policies have multiple limits – a certain amount per person, another amount per accident, and sometimes an aggregate limit on all losses paid during the policy term.
Covers damage to the auto not resulting from a collision. Example: Car is parked in a parking lot and a tree limb falls, breaking the windshield.
Insurance against a loss resulting from damage to the covered auto through collision with another object
Normally the first page of a policy, it includes the insured’s name, how long the coverage applies and how much insurance is being provided. Also called the declarations page.
The estimated or claimed amount of money due in reparation for injury or loss suffered.
A specified amount that is deducted from a loss before policy coverage begins. (Example: Auto insured on a policy with a $250 deductible sustains $1,000 in damage, then the policyholder pays the first $250 and the insurance company pays the $750 balance.)
The day and hour when the policy will terminate if not canceled earlier or continued by payment of renewal premium.
Provisions of an insurance policy that state what the company will not pay for.
Refers to the possibility of loss faced by the policyholder (Example: Having a fireplace in the home presents a higher exposure due to the possibility of a fire.)
Expiration or cancellation of an insurance policy by nonpayment of premium.
A hold or claim one party has on the property of another, usually as security for a debt or other obligation. An example would be an automobile loan.
The party who holds the lein on the vehicle. Usually a bank or automobile finance company. (eg. Ford Motor Credit)
The basis of a claim for indemnity, most often referring to a financial loss through a decrease in the quantity, quality or value of insured property, due to an occurrence insured against by the policy.
A condition of being bound by law to do something, enforceable in the courts. For insurance purposes it most often involved the payment of damages.
An amendment to an insurance policy to provide coverage for special circumstances not included in the basic contract, usually for an additional premium.
Merit Rating Level
Refers to the point level assigned to a driver by the Massachusetts Registry of Motor Vehicles for At Fault Accidents and Moving violations. The Merit Rating Level is used as a factor in determining the policy premium.
The person on whom, or on whose property, the insurance is written. Most often this will be the policyholder. The person who applied for, pays for, and is issued the insurance policy.
An accidental event, or series of events, that leads to a loss.
Refers to an inspection required to be completed by an insured, in order to obtain Physical Damage Coverage on their vehicle. This differs from the State required safety inspection, and failure to have it completed will result in the removal of Physical Damage Coverage from the vehicle.
Normally refers to the comprehensive and collision coverages of a vehicle policy.
The money paid for an insurance policy.
A written statement, with supporting documentation (if any) provided to the insurance company as a basis for paying a claim.
Refers to damage to the property of others.
Liability Coverage which covers the damages to the property of others that you are deemed responsible for as the result of an at-fault accident.
The period of time that an insurance policy is to continue in force. Current Commerce writes policy’s with a one year policy term.
This provision, sometimes included in the basic policy and sometimes added by endorsement, covers replacement of the property lost without a deduction for depreciation.
Recovery of money from a third party, by the insurance company, in connection with payment of a loss to a policyholder.
Refers to an additional amount that a driver with at-fault accidents and moving violations may pay for their insurance as a result of these incidents.
A condition of having policy limits that are not adequate to cover all needs that can reasonably be anticipated.
The auto policy provision pays the policyholder in the event an accident is caused by a driver whose liability insurance is not adequate to cover the full amount of damages.
The auto policy provision pays the policyholder in the event an accident is caused by a driver who has no liability insurance.
Agent Locator
Claims Locator