Mass. Car Insurance Cos. Issue Refunds to Motorcyclists

Riderless motorcycle on open roadMassachusetts auto insurance companies recently shelled out millions of dollars to thousands of motorcycle owners and the state as part of a settlement over allegations that they had been overcharging motorcyclists on premiums.

State Attorney General Martha Coakley said in a press release that the department was tipped off by a consumer.

“We began our industry-wide investigation into motorcycle insurance based on a single consumer complaint,” said Coakley. “To date, that investigation has forced 12 insurance companies to return more than $33 million to Massachusetts motorcycle owners.”

The six companies that have recently completed sending refunds are Arbella Mutual, Metropolitan P&C, Plymouth Rock Assurance, Pilgrim Insurance, Hanover Insurance and Norfolk & Dedham.

Wronged motorcyclists in Middlesex and Worcester County will receive an average of just over $300 per refund. Riders in Norfolk and Plymouth counties will receive an average refund of approximately $321. Consumers must have purchased comprehensive or collision coverage after January 2002 and must have had their motorcycles overvalued in order to be eligible to receive funds from the settlement.

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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