Some Alberta auto insurers fined for overcharging customers: report

A new report says more than 20 auto insurance companies were fined for overcharging drivers on their premiums. Jacqueline Wilson reports.

A new report from the Alberta Superintendent of Insurance is shedding light on auto insurance premium overcharges in the province.

The data, collected from 2022-2024, found more than 20 auto insurance companies were fined over 3.1 million dollars for overcharging drivers more than approved rates.

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This was done through ineligible surcharges, programming errors and failure to apply proper discounts, the report said.

“These findings confirm what many consumers have long suspected: insurers are prioritizing profits over fair treatment, and without proper accountability, Albertans will continue to be exploited,” a news release from FAIR Alberta states.

FAIR Alberta is a consumer advocacy group that focuses on auto insurance.

“The fact that insurers have been caught and fined for overcharging Albertans should set off alarm bells – yet this is the same industry that will now be given even more control under a no-fault insurance regime,” said FAIR Alberta spokesperson Jackie Halpern.

Alberta will be moving to a predominantly no-fault insurance system, which it calls the Care-First system, as of Jan. 1, 2027.

In most cases, crash victims won’t be able to sue the party responsible for their injury.

Instead, insurers will pay compensation at rates set by the government.

In response to the report a spokesperson for the Ministry of Treasury Board and Finance says:

“The Superintendent reviewed 52 insurers and found system and human errors by 21 insurers leading to $3.1 million in penalties. Affected Albertans have been refunded their overcharged premiums, plus interest. To reduce the likelihood of future errors, the Superintendent of Insurance is releasing a guideline with best practices for insurers. The implementation of the care-first insurance model will lead to $400 a year in savings for drivers when fully implemented in 2027.”

Some Alberta drivers who are deemed as “good drivers” will see an increase in their rate from 3.7 per cent to 7.5 per cent in 2025.