Lynnfield couple among bikers overbilled by Safety Insurance

LYNNFIELD – Safety Insurance Co. on Tuesday began sending out thousands of dollars in checks to motorcyclists, including a Lynnfield couple, who were overcharged on their policies.The paybacks were ordered by state Attorney General Martha Coakley, who reached a settlement with the insurance company earlier this year.The settlement relates to allegations that Safety Insurance overcharged Massachusetts motorcyclists by using inflated motorcycle values to calculate their insurance premiums.The Lynnfield couple was overcharged by more than $1,500 because the company valued their 1999 Harley Davidson Road King Classic at $20,000 in each year between 2003 and 2008, according to a press release from the state Attorney General’s office.In fact, the motorcycle’s book value was significantly less than $20,000 in 2003 and by 2008 the motorcycle’s book value had fallen to less than $11,000. Coakley’s office did not release the name of the Lynnfield couple.To date, the settlements reached by Coakley’s office will return more than $20 million to Massachusetts motorcycle riders, according to spokesman Jill Butterworth. Safety Insurance is the largest of the six companies in the settlement.Earlier this month, Safety Insurance completed the initial process of sending 21,258 proffer letters to affected consumers and has since begun mailing refund checks to those who have returned signed release forms.The average refund to consumers under the Safety settlement is $348, according to the press release.Under the settlement:u 1,710 policies are eligible for refunds between $1,000 and $24,655;u 2,730 policies are eligible for refunds between $500 and $999;u 3,786 policies are eligible for refunds between $250 and $499; andu 13,032 policies are eligible for refunds under $250.In order to be eligible for a refund, a consumer must have purchased comprehensive and/or collision coverage for a motorcycle between Jan. 1, 2002 and Nov. 21, 2008 and the motorcycle must have been overvalued by Safety Insurance Company for the purposes of calculating premiums.