: wggb.com
Massachusetts - BOSTON, Mass. (WGGB) - Thousands of motorcycle owners in Massachusetts will receive a total of $14.6 million in insurance refunds due to a settlement with Commerce Insurance Company after they allegedly overcharged customers.
It's the largest motorcycle settlement the state has been able to obtain according to the Attorney General's Office. So far a total of $57.4 million has been secured for consumers as a result of the AG's Office 4 year motorcycle insurance investigation.
It all began with a single consumer complaint which has now led to settlements with 19 insurance companies since 2010 and refunds to more than 150,000 Massachusetts policy holders.
Commerce is presently the largest writer of automobile insurance in Massachusetts.
Under the terms of the settlement, which was filed today in Suffolk Superior Court, Commerce will pay $14.6 million in refunds on over 40,000 insurance policies, and $325,000 to the Commonwealth. The insurance company is expected to begin sending out refund checks later this month ranging from less than $50 to more than $12,000 per consumer, with an average check around $360.
According to the settlement, Commerce allegedly overcharged certain customers between 2002 and 2011 by using inflated and un-depreciated motorcycle values to calculate insurance premiums. Although Commerce changed its business practices in 2005, in an effort to comply with required rating procedures, the AG's investigation found that some overcharges occurred even after 2006.
"Our extensive investigation into these insurance companies has resulted in the return of millions of dollars to thousands of Massachusetts motorcycle owners," AG Coakley says, "Identifying these troubling overcharges continues to underscore the need for transparency in auto insurance rating practices, and we are pleased to have facilitated refunds for consumers statewide."
In order to be eligible for a refund under one or more of AG Coakley's settlements, consumers must have purchased Comprehensive, Collision, and/or Limited Collision coverage for a motorcycle during certain time periods (typically between 2002 and 2010), and their motorcycle must have been overvalued by their insurance company. Commerce policyholders will be able to determine their refund eligibility using the Attorney General's Motorcycle Refund Lookup Application later this month.
Consumers who have questions about the settlements or their refunds may visit the Attorney General's Motorcycle Insurance Settlements FAQ or call the Attorney General's Insurance & Financial Services Division at 1-888-830-6277.
