Motorcycle Insurance Articles
Why Massachusetts Motorcyclists Are Receiving Insurance Refunds
2010-05-04
The average consumer is aware that insurance companies are notorious for inflating their premiums and overcharging their customers, but recently Massachusetts Attorney General Martha Coakley brought allegations to 7 motorcycle insurance providers for inflating motorcycle values in order to increase the premiums on each vehicle. This may come as a shock to some but most individuals are aware of how misguiding and untrustworthy some of the major insurance companies are today. Actions such as these require consumers to pay closer attention to which company they are paying and how accurate their calculations of premiums are.
The list of insurance providers involved in this scandal includes companies such as Metropolitan Property, Plymouth Rock Assurance, USAA, Liberty Mutual, Safety Insurance Company, and Quincy Mutual. Most have been in business for many years and have millions of policy holders. Attorney General Coakley is demanding that a sum of approximately 20 million dollars be refunded to the consumers affected and 1 million dollars to be paid to the Commonwealth of Massachusetts. An investigation into several other insurance companies is currently in progress.
The Commonwealth Attorney's Office began the investigation in 2008 in regards to a complaint held by a Harley Davidson owner. The owner claimed that the motorcycle was stolen and that Safety Insurance Company had valued the bike at $20,000, but had offered only $11,000 to settle the claim. The consumer notified the Commonwealth and an investigation soon followed. Average motorcycle insurance refunds will be around $300, but some policy holders will receive more based on factors such as the estimated value of the motorcycle, and the period in which they held a policy. In order to qualify for motorcycle insurance refunds, the value of the motorcycle has to be overestimated and collision or comprehensive coverage must have been purchased by the consumer.
This will consequently affect thousands of consumers in Massachusetts and there is a possibility for that number to increase pending the outcome of current investigations put forth by the Commonwealth of Massachusetts Attorney's Office. Today's economy does not allow for consumers to be taken advantage of, and Attorney General Coakley is putting her foot down and vigorously investigating all relative insurance companies to identify any wrongful actions made by such companies. Now it is more important than ever to examine your own motorcycle insurance policy to make certain you are getting the fairest rate available. Ask your agent for a complete, itemized overview of your policy and do a little investigating yourself. Make sure the actual value of your motorcycle is reflected in your policy, and if it is not then ask your agent to amend the policy.