The following chart outlines which insurance companies have paid what so far in the settlements with The Attorney General.
The Office of the Attorney General entered into settlements with three additional insurance companies this week that will result in an additional $5.6 million in refunds to Massachusetts motorcycle owners. This brings the total number to 15 of insurance companies who have settled with the Attorney General regarding the issue of inflated motorcycle insurance premiums. The Attorney General estimates that the grand total in refunds is now approaching $40 million.
“We are pleased that our investigation, which began with a single consumer complaint, has resulted in the return of nearly $40 million to Massachusetts motorcycle owners,” said Attorney General Coakley. “We are very concerned that the auto insurers in this state were able to overcharge so many Massachusetts consumers on such a large scale.”
Under the terms of these new settlements, Premier Insurance Company of Massachusetts (“Travelers”) will be refunding approximately $5,000,386; American Automobile Insurance Company (“Fireman’s Fund”) will refund $571,394; and Electric Insurance Company (“Electric”) will return $123,882 to policyholders in the Commonwealth. The settlements involved allegations that these insurance companies illegally overcharged their Massachusetts customers for years by using inflated and un-depreciated motorcycle values to calculate insurance premiums. As part of the settlement agreement, the companies are required to send out collectively more than 14,000 refund checks later this month. The Attorney General states that the average refund check will be about $400. All-in-all her office estimates that about:
- 1,424 checks will be over $1000
- 2,031 checks will be between $501 and $100
- 2,627 checks will be between $251 and $500
- 3,579 checks will be between $100 and $250
- 4,488 checks will be under $100
The Attorney General’s investigation into this matter stemmed from a consumer complaint filed at her office. The consumer was the owner of a 1999 Harley-Davidson Road King Classic. The AG’s Office says that between 2003 and 2008, the consumer’s insurance company calculated the premium for the motorcycle as if his 1999 Road King Classic were brand new and worth $20,000. As a result, the insurance company used the inflated value to rate his policy and was overcharged $1,500 for his insurance.