Mass. AG Settles with Insurers that Overcharged

05/07/2010

Thousands of Massachusetts motorists should have had their at-fault accident findings overturned in 2009.

However, failure by their auto insurance companies to update their databases caused many of these individuals to continue paying increased premiums. About 100,000 of them will have their records corrected as a result of four settlements by Attorney General Martha Coakley's Office, according to a recent release.

The four auto insurers involved will have to update their databases in compliance with a 2009 Board of Appeal statute and make $100,000 in payments to the state. The companies will also be required to inform any others that use their databases of their changes and offer reimbursement for surcharges.

"If this problem had not been caught and corrected, these at-fault reports could have resulted in premium overcharges to Massachusetts drivers for years to come," Coakley said. "We are pleased that the settling insurers cooperated with our review and agreed to reverse their at-fault reports."

This announcement follows settlements earlier this year against six other auto insurance companies that did not update their databases.

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