Insurance consumer advocate Ronald Godwin says insurance rates should be scrutinized by several experts. (CBC)

A second auto insurance company faced tough questions about rates it charges drivers Thursday at a New Brunswick Insurance Board hearing.

Pembridge Insurance — a division of Allstate — is the latest company to go under the microscope as the province fights to lower rates paid by New Brunswick drivers.

Michael Hines, a lawyer with the Department of the Attorney General, argued that Pembridge overcharged its New Brunswick customers last year by overstating expenses and understating income in filings with the board.

Pembridge executives have denied that claim.

It's the second time in two months the province has questioned an auto insurance company about rates charged to New Brunswick drivers.

At a hearing in May, the province suggested Dominion Insurance had overcharged its customers, although the board has yet to rule in that case.

The hearings come as evidence continues to surface that New Brunswick's drivers have paid hundreds of millions of dollars too much for auto insurance since reforms were adopted in 2003.

The province's consumer advocate for insurance said any additional scrutiny of company rates is welcome.

"Having other experts and other interveners look at application rate filings certainly doesn't hurt, I mean you have more people having a closer look at these applications or filings," Ronald Godin said.

Paula Elliot, an actuary who testified for the province, suggested Pembridge made enormous profits in New Brunswick between 2004 and 2008 and would make too much again last year unless its rates were reduced by at least 3.6 per cent and a rebate offered on the difference.

Pembridge executive Marco Gorgonio disputed claims of excess profits but wouldn't say what the company earned.

A decision on whether Pembridge customers are entitled to rebates for last year is expected by mid-summer.