Auto Insurance Companies To Reimburse Customers
Post Date April 5, 2013 – Four Massachusetts auto insurance carriers were recently served with law suits. The car insurance carriers were sued for overcharging their customers through their legally mandated surcharges. Those with accidents, tickets and violations even DUI”s were effected. The Massachusetts Attorney General Martha Coakley, whom recently ran for the United States Senate in a statement disclosed that settlements were filed last month with four auto insurance companies; Massachusetts Home Insurance Company, Premier Insurance Company of Massachusetts, Pilgrim Insurance Company, and Plymouth Rock Assurance Corporation. The settlement terms with the auto insurance companies the said insurers will impose an audit on their insurance policies in order to determine how much will be refunded to consumers. The payment will be collectively given by the Massachusetts auto insurance companies through out the state. Aside from the refund to it’s car insurance company customers, interest will be paid to all the victims.
Auto insurance companies to return over-payments…..
There may be a number of extra payments paid to the over charged customers. The Attorney General’s Office will be conducting audits to insure all the misappropriated funds. Coakley said they began investigating the surcharges after they received a complaint from a customer whose surcharge were already overturned by the Board of Appeal in 2010. The complaint was against Metlife Property & Casualty. The outcome of the investigation showed that in 2012, the Met and other auto insurance companies did not refund the consumers of $700 in car insurance overpayments. The case resulted to a settlement in January this year.
When investigating other insurers, the attorney general found that the four car insurance carriers mentioned above are still charging the surcharges. The Board of Appeals in Massachusetts is very much like the Department of Insurance in the State of Pennsylvania. Both organizations are independent bodies tasked to review the fairness of how auto insurance companies set rates, determine surcharges and resolve issues for insurance customers. In the past ten years, the Board had already vacated more than 40,000 surcharges and the refunds were imposed through settlement with auto insurance providers. Coakley’s office is still evaluating other Massachusetts auto insurance companies and their surcharge practices.
Michael E. Dortch
President & Senior Agent
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania 19446
(800) 807-0762 ext. 206