Over 19,000 Refunds Sent to Middlesex & Worcester County Motorcycle Owners Under AG Coakley's Motorcycle Insurance Settlements
Middlesex & Worcester County Riders Receiving Over $5.9 Million in Refunds
Of the $17.5 million that is currently being returned by Arbella, Metropolitan, Plymouth Rock, Pilgrim, Hanover and Norfolk & Dedham, motorcycle riders in Middlesex County will receive over $3.6 in refunds and Worcester County riders will receive over $2.2 million. Average refunds in the two counties are $300.77.
In Middlesex and Worcester counties there are 19,652 refunds of which:
- 1,216 are between $1,000-$7,767
- 2,363 are between $500-$999
- 8,066 are between $100-$499
- 8,007 are under $100
In order to be eligible for a refund under the Attorney General's settlements, a consumer must have purchased comprehensive and/or collision insurance coverage for a motorcycle on or after January 1, 2002 and that motorcycle must have been overvalued by the insurance company for the purposes of calculating premiums. Consumers who think they may be entitled to a refund can use the Attorney General's Motorcycle Insurance Refund Lookup Webpage at www.motorcycle.ago.state.ma.us to find out whether they are eligible, and if so, how much they're entitled to receive. Consumers who have questions about the settlement or their refund may visit the Attorney General's webpage about the motorcycle insurance settlements or call the Attorney General's Insurance & Financial Services Division at 1-888-830-6277.
The Attorney General's Insurance & Financial Services Division began its investigation into motorcycle rating practices in the fall of 2008 after receiving a complaint from a consumer about the way Safety Insurance Company had valued a 1999 Harley-Davidson Road King Classic. In each year between 2003 and 2008, the Attorney General's Office found that Safety Insurance Company had charged the consumer premiums as if the1999 Road King Classic were worth $20,000. However, by 2008, the motorcycle was nine-years-old and worth less than $12,000. As a result, Safety Insurance Company overcharged the consumer by more than $1,500. The Attorney General's investigation ultimately found that many of the insurance companies operating in Massachusetts between 2002 and 2009 had used inflated motorcycle book values to calculate premiums for their customers and that tens of thousands of Massachusetts residents had been affected by the resulting overcharges.
To date, the Attorney General's Office has reached settlements with Safety Insurance, Liberty Mutual, Plymouth Rock Assurance, Pilgrim Insurance Company, Metropolitan Property & Casualty, USAA, Arbella, Hanover Insurance, OneBeacon, National Grange, Norfolk & Dedham, and Quincy Mutual to resolve similar allegations. In total, the dozen insurance companies that have settled are expected to return over $33.8 million on nearly 100,000 policies and pay over $1.5 million to the Commonwealth. A number of other insurance companies remain under investigation.
More information about the settlements, including a link to the Attorney General's Motorcycle Insurance Refund Lookup Webpage is available at www.mass.gov/ago/motorcycles.
These cases are being handled by Investigations Supervisor Arwen Thoman, Mathematician Burt Feinberg and Economist Bryan Lincoln-all of the Attorney General's Insurance & Financial Services Division, and also Glenn Kaplan, Chief of the Insurance & Financial Services Division. The original consumer complaint was handled by Rebecca Dutra, a Mediator in the Attorney General's Insurance & Financial Services Division.