Three more insurance companies settled Monday to pay consumers over $5.7 million in settlements after over-charging for premiums, according to the Massachusetts Attorney General’s Office.
The AG’s office says Premier Insurance Company of Massachusetts will refund $5,000,386, American Automobile Insurance Company will refund $571,394 and Electric Insurance Company will refund $123,882 to policyholders in Massachusetts.These three insurance companies are expected to collectively send out more than 14,000 refund checks later this month, each averaging $400 to motorcyclists.It all began with a 1999 Harley-Davidson Road King Classic and its owner in Massachusetts. The rider filed a complaint with Massachusetts Attorney General Martha Coakley, stating the insurance company was charging premiums from 2003 through 2008 that were calculated on the Harley Road King’s new price of $20,000.But by 2008, the bike’s blue book value was less than $12,000, although the insurance company was still charging premiums based on $20,000. The investigation resulted in more than $1,500 in overcharges in that particular case.This lead to a bigger investigation in Massachusetts, and 15 insurance companies were found to be overcharging motorcyclists. All insurance companies agreed to return close to $40 million to Massachusetts motorcycle owners, with the other 12 settling last year.