Two Motorcycle Insurers in Massachusetts to refund USD 2.8M
Thanks to a settlement of state and two motorcycle insurance companies operating in state, nearly 10,000 bike owners will get a refund of USD280 they paid more because of over valuation of their vehicles. Both insurers over estimated motorcycle values. include subsidiary of Allstate, Encompass Insurance Co. of Massachusetts and Providence, R.I.- based Amica Mutual Insurance Co. calculated bike values as if they were new and did not take into consideration the age of motorcycle.
According to Attorney General Martha Coakley, “This investigation began with a single consumer complaint, and has now resulted in the return of $42.8 million to Massachusetts motorcycle owners,” Coakley said. “These cases underscore the need for transparent auto insurance rates. Consumers and regulators have the right to know how insurance companies are calculating premiums so that issues like these can be identified and addressed.”
As a result of settlement, Encompass will have to pay USD 2 million and Amica will have to more than USD 8,000,000. Two companies now have to pay a fine of USD 93,600 as well. This settlement is in row of 15 other settlements that Coakley’s office has reached since 2010, resulting in refund of more than USD 42.8 million in total to Massachusetts motorcycle owners.