Massachusetts motorcycle drivers who were overcharged for their coverage through Safety Insurance should begin receiving their refunds shortly. The Insurance Journal reported today that payouts totaling $7.2 million have begun.
The refunds are part of a settlement involving several different motorcycle insurers, that was reached earlier this year with the Massachusetts attorney general’s office, after allegations were made that Safety and six other insurers used inflated values in order to calculate insurance premiums for motorcycle coverage. Safety is the largest of the involved insurers to begin refunding money.
According to Attorney General Martha Coakley, the settlements from all the companies will put over $20 million back in the pockets of Massachusetts motorcycle owners, with the average refund being about $348. Under the terms of the settlement there are 13,032 policies eligible for refunds under $250, 3,786 policies eligible for refunds between $250 and $499, 2,730 eligible for settlements between $500 and $999, and 1,710 that may receive refunds between $1,000 and $24,655. All those policies were issued between January, 2002, and November, 2008.
The other insurance companies involved in the settlement are Liberty Mutual, Metropolitan Property & Casualty, Pilgrim Insurance Co., Plymouth Rock Assurance, Quincy Mutual, and USAA. In addition to the $20 million being refunded to policyholders, the seven insurers will pay over $1 million to the state of Massachusetts.
Liberty Mutual and Quincy Mutual completed the refunds earlier this summer. Plymouth Rock Assurance, Pilgrim Insurance Company, Metropolitan Property & Casualty and USAA are expected to begin sending refund checks to consumers later this fall.
Consumers throughout the country are reminded to comparison shop when buying motorcycle insurance.