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

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

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

Ms. Coakley said the Attorney General's Office reached similar settlements with Safety Insurance Company, Liberty Mutual and Quincy Mutual in January of this year.

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

The investigation into motorcycle rating practices began in the fall of 2008, Ms. Coakley said, after she received a complaint that Safety Insurance Company had valued a policyholder's motorcycle at $20,000 in each year between 2003 and 2008, but had offered less than $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 $1,500 in premiums based on the errant $20,000 value.

Ms. Coakley said, "While we appreciate that these companies cooperated with our investigation, it remains troubling that they systemically overcharged their customers on such a large scale. Our office will continue to investigate other companies engaged in this type of behavior."

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

Companies will also make payments to the state totaling more than $500,000 and adopt conduct reforms, the attorney general added.