For Immediate Release - January 16, 2013

$2.8 Million in Refunds Sent to Motorcycle Owners Under AG’s Latest Insurance Settlements

Companies Complete Refund Process; AG Coakley’s Office has Obtained More Than $42.8 Million in Consumer Restitution to Date

BOSTON - More than $2.8 million in insurance refunds have gone back to Massachusetts motorcycle owners, Attorney General Martha Coakley announced today. Since 2010, 17 insurance companies have settled with the AG’s Office resulting in more than $42.8 million in refunds to Massachusetts motorcycle owners. 

Encompass Insurance Company of Massachusetts (Encompass), an Allstate subsidiary, Amica Mutual Insurance Company (Amica), and NGM Insurance Company (NGM), also known as Main Street America, all recently mailed payments to Massachusetts motorcycle owners under settlements previously reached with the AG’s Office. Encompass sent $1.9 million in payments, Amica sent $837,384 in payments, and NGM sent $17,833 in additional payments after already sending more than $700,000 in payments in June 2011 under the same settlement. Combined, consumers have received a total of 10,137 checks from the three carriers within the past two weeks.  Average refunds to consumers are around $280.

“We began our industry-wide investigation into motorcycle insurance based on a single consumer complaint,” AG Coakley said. “With these insurance companies having now completed the refund process, we are proud that our investigation has resulted in the return of more than $42.8 million to Massachusetts motorcycle owners since 2010.”

The payments by Encompass, Amica, and NGM are part of AG Coakley’s industry-wide investigation into motorcycle rating practices. All 17 of the related settlements stem from a complaint the AG’s Office received from a consumer who owned a 1999 Harley-Davidson Road King Classic.  In each year between 2003 and 2008, the consumer’s insurance company calculated the consumer’s premiums as if his 1999 Road King Classic were brand new and worth $20,000.  However, by 2003, the consumer’s four-year-old motorcycle was worth significantly less than its original price, and by 2008, the nine-year old motorcycle was worth around $12,000.  Still, in each year between 2003 and 2008, the consumer’s insurance company used the inflated $20,000 value to rate his policy, resulting in more than $1,500 in overcharges. 

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 Jan. 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 to find out whether they are eligible, and if so, how much they are entitled to receive. Consumers who have questions about the settlements or their refund may visit the Attorney General's FAQ about the motorcycle insurance settlements or call the Attorney General's Insurance & Financial Services Division at 1-888-830-6277.

These cases were handled by the Investigations Supervisor Arwen Thoman and Mathematician Burt Feinberg, Insurance & Financial Services Division staff members Emily Garvey and Sabrina Maynard, along with assistance from Chief Information Officer Kevin Coluci and Assistant Attorney General Glenn Kaplan, Chief of Attorney General Coakley’s Insurance & Financial Services Division.  The original consumer complaint was handled by Mediator Rebecca Dutra also of Attorney General Coakley’s Insurance & Financial Services Division.


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