After a series of lawsuits and voluntary settlements by insurance companies, Massachusetts bikers are scheduled to start receiving refund checks in October.
According to Massachusetts Attorney General Martha Coakley, 15 insurance companies have overcharged bikers a total of $40 million dollars that will be refunded. ”We are pleased that our investigation, which began with a single consumer complaint, has resulted in the return of nearly $40 million to Massachusetts motorcycle owners,” Coakley said in a statement. ”We are very concerned that the auto insurers in this state were able to overcharge so many Massachusetts consumers on such a large scale.”
Motorcycle insurance companies were charging premiums based on the original value of a motorcycle, not taking depreciation into account. So, the owner of a ten year old bike was being charged as if the bike had just came off of the assembly line; thus, the overcharges occurred. Given that 15 companies have admitted to doing this when it comes to Massachusetts motorcycle insurance alone, it would seem as if it is a widespread scam.