Automobile Insurance - Resolving Disputes Over Premiums

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Resolving disputes over premiums

A dispute resolution process is available to assist drivers who believe their premium for mandatory auto insurance coverage has been incorrectly calculated, or who believe their insurer has treated them unfairly under the Insurance Act and Automobile Insurance Premiums Regulation.

The act and regulation say that an insurer cannot:

refuse to process an application for automobile insurance;
refuse to issue or renew a contract;
terminate or cancel a contract; or
refuse to provide or continue any coverage or endorsement.

Consumers with allegations of these actions use the new three-step process to resolve the dispute.

Three-step process
The three steps to the dispute resolution process are:

Customer assistance - contact your insurance agent or broker, or the company complaint liaison officer;
Mediation - if a resolution isn't possible through customer assistance, contact the General Insurance OmbudService for mediation assistance;
Arbitration - if a resolution isn't possible through mediation, apply to the Automobile Insurance Dispute Resolution Committee (AIDR) to have the dispute with your insurer referred to arbitration.

What does it cost?
There are no costs to you to use the three-step dispute resolution process and services. However, if you choose to proceed to arbitration, the Arbitrator has the discretion to assess all or a portion of the costs of the arbitration if a party's claim is obviously without merit, or a party has acted in an inappropriate manner.

See Also:

Automobile Insurance Rate Board Order 2-06, which details Grid Premiums effective November 1, 2006;
Grid rate calculator on the Automobile Insurance Rate Board website; and
Automobile Insurance Premiums Regulation.