Press Releases

Well well well... it`s been an interesting beginning of the year for motorcyclists. And by the time you read this article, the election will have come and gone and I pray we`ll be celebrating a victory for Scott Brown in his bid for the Senate race.

While Brown, a motorcycle rider was going up against Martha Coakley, and on the almost virtual "eve" of the election while she felt she had to pull out "all stops", call the president to her aid in her bid for the Senate seat vacated by Kennedy`s death; she pulled a rabbit out of her hat!

Oh yeah.... something bikers rights activists in the State have brought to the AG`s office since 2002, to which a blind eye and a deaf ear was turned to; was..... on the eve of the election,granted!

Hmmm.... curious, isn`t it?

The headlines read as such:

Attorney General Martha Coakley recovers 11.1 million in motorcycle insurance overcharges for consumers!

Nice to see she took all the credit and made herself look like a hero! Since 2002, we bikers rights activists have brought our laundry list of unfair practices against motorcyclists to the AG`s office, and in all fairness, the truly blatant unfair practices were changed and fixed. Such as, newly licensed operators being charged the same rate as experienced operators,

the way motorcycles are rated and classified, increased property damage to others, and the territorial rating. We complained that bikers were being overcharged for collision and comprehensive rates based upon the amount of premium taken in, and the amount of losses paid out!

Insurance carriers made millions; and yes, some adjustment was made. However, not all adjustments we requested were granted; and bikers were left still being overcharged.

How you ask? I`ll explain. Let`s say you purchased a new bike back in 2002 and paid $20,000 for it. Fine! You insured it for $20,000. Now before I explain the rest, let me explain that your motorcycle insurance contract is written on an ACV (Actual Cash Value) basis! That`s right! Whatever the actual cash value of your bike is at the time of a loss is what your payment should be based upon.

However, there were some carriers who were unwilling to reduce the "cost new" of your bike as it aged and with each policy renewal. Ergo charging you excessive premium at the cost new, instead of the depreciated value! And hell, you know in a loss, they`re not going to give you "cost new" or replacement value, because the policy contract is not written that way. However, seems we bikers were being charged improperly.

I can recall bringing this to my own carrier and complaining when being told by a customer service person on the phone that I had to use the cost new when valuating the bike. I asked why? You`re not insuring it for what he paid for it, you`re insuring it for it`s value today! Well, I don`t have to tell you, that he was miffed, and I requested to speak with a supervisor, and after speaking with the supervisor, he had to agree with me that I was right! Ergo, I insured my customer`s bike for its ACV, and not the cost new! Which saved him money of course!

That`s what I`ve done pretty much all along for my motorcyclists; however, other companies and other agents didn`t. They either didn`t understand the contract or the incorrect request of the carrier, or just didn`t know any better!

And so it went on, that three major carriers who were named in the settlement, Liberty Mutual, Safety Insurance, and Quincy Mutual, went on to overcharge motorcyclists for SEVEN years, to the tune of $11.1 million dollars! I`m sure there are other carriers caught up in this mix, these just seem to be the biggest offenders.

Think about this for a minute.... there`s less the what, about 185,000 riders in the state, times 7 years... and the sum is $11.1 million dollars! And the AG`s office, or specifically Coakley takes all the credit for this! All on the eve of the special election in the State... Does anybody else wonder how many years she kept this under her hat? Waiting for this personally opportune moment to release this information? Or is it just me?

Now, from what I understand, it`s one thing to say, ok, three companies are the biggest offenders, and they have to pay and pay with 6% interest; but they have to agree to this! And thus far only Safety Insurance has agreed to do it!; but then of course, by the figures mentioned, they were the biggest offenders.

And how do we know who`s affected? And who`ll receive monies back? We don`t know; and have no way of knowing which policies are affected.

My suggestion to you all is, if you think your policy is one of those that is affected, then pick up the phone and call your agent and request they inquire from the insurance company whether or not you`re entitled to a refund.

I notice there`s no time frame listed in the press release as to how long insurers have to refund the monies to customers. It only says that it`s anticipated that Safety will return $7.2 million to policyholders, Liberty will return #3.1 million, and Quincy will return $800,000. In addition to these funds, the carriers will have to make payments to the state totaling $510,000. It it estimated that each policyholder affected will receive $200, with some consumers receiving thousands of dollars; and that tens of thousands of policies are believe to be affected!

Amazing, isn`t it?

And so, does this mean that motorcycle insurance is fair now? No, not necessarily. Loads of bike that have factory installed alarm systems still can`t receive credit for them! We`re still not granted multi-vehicle discounts, or multi- vehicle motorcycle discounts, and what`s up with medical payments?

A motor vehicle policy can opt to have up to $50,000 for medical payments for a car, but most carriers cap med pay at $25,000.... WHEN THE CONTRACT STATES $50,000! Now last time I checked a motorcycle was defined as a motor vehicle!

So maybe this is just the tip of the iceberg and we`ll see more "unfair practices towards motorcyclists being righted" , or maybe this is just a fluke, and something the AG`s office was saving for a rainy day, we don`t know!

I have to say I was quite honored to be invited to speak on his venue on behalf of motorcyclists, and I hope I`ll be invited again.

And not switching gears here this month, and cruising at this speed, I`d like to remind you, that you are your own best advocate! And we have to stay united as motorcyclists, for what`s fair for us, for what`s right, and for our rights!

If an explanation doesn`t seem right to you, question it! Demand a reasonable answer. Don`t lose you rights by not sticking up for them!

I`ll sign off with my motto:

As I live each day, I will do my part,
to make a difference, and touch one heart.
Everyday it will be my goal,
to bring information and enlighten your soul.
Continuous news I`ll disseminate
With the hopes that you will participate
One life to lose, is one life too many
If we don`t fight for our rights,
pretty soon there won`t be any!

Ride and Write on!

Gypsy