Bikers Collect Insurance Refunds

A recent
investigation by the state of Massachusetts found that several
insurance companies were overcharging bikers, who were paying a
premium on their vehicles because the companies overvalued the
price of the bikes.
The Worcester Telegram reports that Attorney General Martha
Coakley, after being tipped off by several bikers, recently found
that insurers were charging riders too much for coverage. The
insurers would value a bike at its new sale price and not adjust
the rates each year to correspond to the devaluing nature of the
bike.
That meant owner Dom D'Errico, who bought a $20,000 Harley in 2003,
was still paying the same amount for his ride in insurance costs in
2008, though the bike was only worth $12,000 at the time. This
prompted D'Errico, the safety and education director for the
Massachusetts Motorcycle Association, and several other riders to
file formal complaints with Coakley.
The resulting investigation found that the companies had indeed
been overcharging riders, and all were entitled to refunds. In
total, seven separate companies will pay back $20 million owed to
bikers across the state. D'Errico got a check for over $700, with
the average around $350.
The attorney general's office found that the insurance companies
had misinterpreted an ambiguous rule in the state's laws rather
than attempt to outright scam riders. Still, bikers in other states
should be sure that they're paying the correct amount to keep their
rides insured.