Posted by:
Manager Communications
on Jan 30, 2025
CALGARY, AB: A newly released report from the Alberta Superintendent of Insurance reveals that auto insurers in Alberta have been fined more than $3.1 million between 2022 and 2024 for overcharging consumers.
This marks yet another chapter in a long history of auto insurers charging premiums above the approved rates set by Alberta’s insurance regulator. The increase in insurance company fines comes at the same time the Alberta government is planning to hand insurance companies’ significant power under a new no-fault insurance system.
Since 2016, insurers in Alberta have been fined more than $6.4 million for violating the Insurance Act with penalties steadily increasing over time. The latest industry-wide examination uncovered widespread overcharging, with 27 insurers found to have engaged in improper billing practices and 21 of them facing penalties for breaking the law.
The Superintendent’s Report details numerous ways insurers have overcharged Alberta drivers including failure to apply proper discounts, charging for ineligible surcharges, and programming ‘errors’ that resulted in inflated premiums. 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.
“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 Jackie Halpern, spokesperson for FAIR Alberta.
“Why should Albertans believe they will act any differently when they are handed unchecked power? No-fault doesn’t just strip Albertans of their right to hold bad drivers accountable—it shields insurance companies from scrutiny, removes consumer protections, and locks Albertans into a system where insurers call all the shots. The track record is clear: insurers put profits first, and without real accountability, Albertans will be left paying more for less,” added Halpern.
Under a no-fault system, insurance companies gain even greater power over claims, while consumers lose key protections including the right to challenge unfair denials or seek legal recourse against at-fault drivers through the court system.
British Columbia serves as a stark warning of what happens when governments hand over full control to insurers under a no-fault model. Since implementing its so-called “care-first” no-fault system, BC drivers have seen reduced compensation for injuries, longer claim resolution times, and fewer legal rights.
“If Alberta follows the same path, drivers will face a biased system where insurers dictate every aspect of their coverage with no way to fight back,” said Halpern.
FAIR Alberta is a coalition of concerned consumers, medical professionals, injured Albertans, and members of the legal community. We are committed to protecting the rights of Albertans and advocating for a fair, transparent auto insurance system that puts consumers first.
Jackie Halpern
(403) 225-6415
jhalpern@mcleod-law.com
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