New Zealand’s AA Insurance says it made errors when billing some customers and it has refunded those it overcharged.

“We identified an issue which resulted in premiums being incorrectly calculated for a small proportion of our customers when they took out an insurance policy with us,” chief product and marketing officer Shaun Rees said.

“We have contacted and refunded any customers who were overcharged and made sure they are not out of pocket, and have waived the additional premium cost for customers who may have underpaid.

“This issue has now been fixed, and we have put things right and apologised to affected customers.”

The insurer has not provided further details, but a Radio New Zealand report said the error related to the way policyholders’ ages were recorded.

“Some said they had been told they were not paying enough for their car policies because the age of the oldest policyholder was inaccurate,” the report said.

AA Insurance is a joint venture joint between Suncorp brand Vero and the New Zealand Automobile Association.

In 2024, New Zealand’s High Court imposed a $NZ6.175 million ($6.18 million) penalty on AA Insurance for failure to apply multipolicy and membership discounts and guaranteed no-claims bonuses.

Weaknesses in the insurer’s systems and processes led to customers being overcharged $NZ11.2 million ($9.36 million), the court found.