Insurers USAA and NGM Insurance Co. will return a combined $3.4 Million to Massachusetts motorcycle policyholders as part of a settlement with state officials.
Attorney General Martha Coakley said that 9,500 checks have been sent to motorcyclists statewide by 12 insurers. USAA will return $2.6 Million while and NGM — also known as Main Street America — is sending $704,297 in refunds.
“With USAA and NGM having now completed the refund process, we are proud that our investigation has resulted in the return of more than $34 million to Massachusetts motorcycle owners,” Coakley said.
The settlement stems from the state’s investigation into motorcycle rating practices. The other 10 insurers that have reached settlements with the state are Safety Insurance, Arbella, Plymouth Rock, Pilgrim, Metropolitan, Liberty Mutual, Hanover, OneBeacon, Quincy Mutual and Norfolk & Dedham. A number of additional insurance companies still remain under investigation, Coakley said.
Refunds are being sent to consumers who purchased comprehensive or collision coverage for a motorcycle on or after January 1, 2002 — and that motorcycle must have been overvalued by the insurance company.