Two insurance companies were found liable of overcharging motorcycle insurance policyholders. Allstate subsidiary Encompass Insurance Co. of Massachusetts and Providence, R.I.-based Amica Mutual Insurance Co. will pay millions as a result of the lawsuit, which revealed that the companies did not take depreciation of bike values over time into account when calculating premiums.
Encompass will pay policyholders $2 million and Amica will pay more than $800,000. They will both pay a state fine of $93,600. Owners of more than 10,000 motorcycles will get checks for an average of $280. The agreement is one in a long string of settlements involving 15 other insurance companies accused of overcharging motorcycle policyholders by almost $43 million.
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