According to the Boston Globe, the Massachusetts Insurance Carrier, Commerce Insurance has agreed to settle a lawsuit against them by the State attorney general’s office as a result of unfair billing practices. Commerce Insurance admitted to overbilling their policy holders because they overvalued motorcycles and did not account for depreciating values of older motorcycles. As part of the agreement, Commerce will be paying over $15 million in refunds to their policy holders.
Commerce Insurance writes the largest share of auto and motorcycle insurance in the state of Massachusetts. Pursuant to the settlement, Commerce will be sending back to customers checks ranging between $50.00 all the way up to $12,000.00. The average return will be $360.00 per policy holder.
The investigation began when a policy holders complaints went unanswered by the insurance company. Eventually the State Attorney General’s office became involved and performed a 4 year investigation into the billing practice of Commerce Insurance. The overcharging of premiums to individuals holding auto and motorcycle policies is troubling. If the Massachusetts Attorney General’s office did not get involved, this insurance company would have reaped the benefit of overcharging at the expense of the public.