NU Online News Service, March 3, 10:49 a.m.EST

Four auto insurers in Massachusetts have reached a settlementwith State Attorney General Martha Coakley's Office to return anexpected $9 million to consumers for alleged overcharges.

The agreements with Metropolitan Property & CasualtyInsurance Company, Plymouth Rock Assurance, Pilgrim InsuranceCompany and the United Services Automobile Association (USAA)settle allegations that the companies used inflated motorcyclevalues to calculate premiums for some Massachusetts customers,resulting in premium overcharges.

Ms. Coakley said the Attorney General's Office reached similarsettlements with Safety Insurance Company, Liberty Mutual andQuincy Mutual in January of this year.

In total, her statement said, the seven insurers are expected toreturn $20 million to consumers and pay over $1 million to theCommonwealth.

The investigation into motorcycle rating practices began in thefall of 2008, Ms. Coakley said, after she received a complaint thatSafety Insurance Company had valued a policyholder's motorcycle at$20,000 in each year between 2003 and 2008, but had offered lessthan $11,000 to settle a claim after the motorcycle was stolen.

The owners requested $20,000 in settlement of their claim, Ms.Coakley said, and Safety then allegedly tried to refund over $1,500in premiums based on the errant $20,000 value.

Ms. Coakley said, "While we appreciate that these companiescooperated with our investigation, it remains troubling that theysystemically overcharged their customers on such a large scale. Ouroffice will continue to investigate other companies engaged in thistype of behavior."

The settlements were filed in Suffolk Superior Court in Boston.The Attorney General's Office said it anticipates that MetropolitanProperty & Casualty will return $3.5 million, Plymouth RockAssurance and Pilgrim Insurance will collectively return $3.6million, and USAA will return $2.3 million to policyholders, Ms.Coakley said.

Companies will also make payments to the state totaling morethan $500,000 and adopt conduct reforms, the attorney generaladded.