Alberta auto insurance companies fined for overcharging, report says
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Posted Jan 30, 2025 7:38 pm.
Last Updated Jan 30, 2025 7:39 pm.
The Alberta government’s insurance watchdog has fined several insurance companies for overcharging customers, with 21 insurers fined a combined total of $3 million.
The fines were levied after the province’s Superintendent of Insurance conducted a review on insurers in the province from 2022 to 2024.
The report suggests overcharging occurred through surcharges, errors and not applying proper discounts.
Jackie Halpern with FAIR Alberta says insurers have been fined more than $6 million since 2016 and she worries the problem will only get worse with a new no-fault system on the way.
“Why would they act any differently when they are handed unchecked power,” she says. “It shields insurance companies from scrutiny and it removes consumer protection.”
FAIR Alberta opposes the move to no-fault insurance and is hoping to convince the provincial government to change its mind.
Halpern says the findings confirm suspicions some consumers already have had about their insurance company.
“Insurers being caught and fined for overcharging Albertans should set off alarm bells for everyone,” says Halpern.
In a statement to CityNews, the province says affected Albertans have been refunded their overcharged premiums with interest.
The statement goes on to say the implementation of the care-first insurance model will lead to $400 a year in savings for drivers when it’s fully implemented in 2027.