NU Online News Service, Oct. 5, 2:53 p.m.EST

One consumer complaint in Massachusetts has now led to nearly$40 million in rebates to motorcycle owners.

State Attorney General Martha Coakley says her office hasreached an agreement with three additional insurers to return morethan $5.6 million to motorcycle owners.

The Attorney General's Office has now arranged settlements with15 insurance companies stemming from one complaint about premiumscharged in relation to the value of a motorcycle.

A Lynnfield, Mass. man told Coakley's office that he was beingcharged premiums from 2003-2008 as if his 1999 Harley-Davidsonmotorcycle was new and still worth $20,000. By 2008 his motorcyclewas worth less than $12,000. Therefore, he was being significantlyovercharged because his insurer continued to use the $20,000 valueto rate his policy.

An investigation revealed many insurers were doing the samething.

“We are very concerned that the auto insurers in this state wereable to overcharge so many Massachusetts consumers on such a largescale,” Coakley says in a statement.

Her office reached rebate agreements with a dozen insurers lastyear. With the three newest agreements, motorcycle owners inMassachusetts have been refunded nearly $40 million.

Travelers' Premier Insurance Co., Fireman's Fund subsidiaryAmerican Automobile Insurance Co., and Electric Insurance Co willbe writing a total of 14,000 rebate checks late this month for anaverage of $400 under the terms of the latest agreement, saysCoakley's office.

Refunds from Premier make up the bulk of the latest settlement.The insurer will write refund checks totaling slightly more than $5million.

Last year Safety Insurance Group agreed to return approximately$7.2 million to motorcycle policyholders and it affected thecompany's fourth-quarter income that year.

Also in 2010, the state attorney general's office reachedsettlement agreements with Liberty Mutual, Quincy Mutual,Metropolitan Property & Casualty Insurance Co., Plymouth RockAssurance, Pilgrim Insurance Co., United Services AutomobileAssociation (USAA), Arbella Mutual Insurance Co., Hanover InsuranceGroup, OneBeacon Insurance, National Grange Mutual and Norfolk& Dedham Group.