Plymouth Motorcycle Owners Receive $500k Insurance Refunds
An investigation by Attorney General Martha Coakley into the way insurance companies value motorcycles has led to $2.8 million in refunds to motorcycle owners.
More than $2.8 million in insurance refunds have gone back to Massachusetts motorcycle owners, with more than $500,000 of that going to Plymouth residents, according to a press release from the Attorney General's office.
A total of 1,795 checks are going to residents in Norfolk and Plymouth County, worth more than $560,000.
The payments by Encompass, Amica, and NGM are part of AG Martha 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.
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.”