OFF THE WIRE
http://www.southcoasttoday.com/apps/pbcs.dll/article?AID=/20101027/NEWS/10270333 Insurance companies to reimburse overcharged motorcyclists
By Brian Fraga bfraga@s-t.com October 27, 2010 12:00 AM Insurance companies to reimburse overcharged motorcyclists Publisher stepping down for new career path Nearly 12,000 motorcycle owners in Bristol and Plymouth counties will be reimbursed $3.59 million in premiums that their insurance companies had overcharged them.
The Massachusetts Attorney General's Office announced Tuesday that six insurance companies had completed the process of sending more than $17.5 million in refunds to motorcycle owners across the state.
The reimbursements are part of a settlement reached earlier this year between the insurance companies and the Attorney General's Office, which began an industry-wide investigation in 2008 after the owner of a Harley Davidson complained that his insurance company had over-valued his motorcycle by $8,000.
Twelve insurance companies have so far agreed to return more than $33.8 million to motorcycle owners in Massachusetts.
Those companies include Arbella Mutual, Metropolitan P&C, Plymouth Rock Assurance, Pilgrim Insurance, Hanover Insurance and Norfolk & Dedham, Attorney General Martha Coakley said in a press release.
Doc D'Errico, the safety and education director for the Massachusetts Motorcycle Association, said the problem of motorcycle owners being overcharged on their insurance policies is "pretty widespread."
"It's affecting most motorcycle owners, at least anyone who's had an insurance policy dating back to 2002 where they've had collision and/or comprehensive coverage," said D'Errico, adding that the problem lies with outdated standards insurance companies use to value motorcycles.
"They never revisited the standards and nobody ever questioned it," D'Errico said. "Motorcyclists complained to each other but never raised the issue to anyone who could do anything about it."
David Morais, 33, of Dartmouth said he pays $750 a year to insure his 2008 Harley Davidson motorcycle.
"I don't know if they base it on value or what," he said. "It feels high to me."
D'Errico said he first noticed the problem in 1995, when he moved to Massachusetts from New York. "It seemed strange to me that I was paying more for my used motorcycle here than what I did in New York," he said.
The average reimbursement for motorcycle owners in Bristol and Plymouth counties is around $301.32, the Attorney General's Office said.
Refunds in the two counties totaled 11,936, with the highest reimbursement at $6,332.
D'Errico said the Massachusetts Motorcycle Association has worked closely with the attorney general in ensuring that consumers be reimbursed.
"I've been incredibly impressed with the diligence of the Attorney General's Office in researching the policies from every insurance company," he said.
Consumers who think they may be entitled to a refund can use the Attorney General's Motorcycle Insurance Refund Lookup Web page at www.motorcycle.ago.state.ma.us . D'Errico said motorcycle owners who believe they may be eligible for a refund may also contact myrefund@massmotorcycle.org.
