Keith Vodden Dr. Douglas Smith - Transports Canada

Appendix A—Detail on Calculations of the Ontario Model
insurance. We do not estimate a comparable amount for private individuals since out-ofpocket
expenses (calculated in the next section) will include such costs.
The analysis is not able to adjust for property damage caused by motor vehicles
owned by a government since governments typically self-insure. These government
losses are expected to be small.
For 2004, the analysis identifies $2.3 billion in property damages and other losses
typically covered through insurance claims. Removing tow truck services, as discussed
earlier the total is $2.2 billion. A total of 483,000 claims (or quasi-claims for those selfinsured)
are estimated through the analysis. Given the somewhat arbitrariness of our
reduction factors in Exhibit A-20 we revised down the property damage estimate to
reflect the 396,000 vehicles with vehicle damage classified from light to demolished in
2004. In so doing we estimate property damage in 2004 at $1.8 billion.
We allocate this total amount to vehicles damaged in 2004 as follows:
• Demolished -- $20,070.
• Sever -- $10,756.
• Moderate -- $4,565.
• Light -- $996.
We use these values in 2004, and values adjusted for inflation in other years, to
allocate property damage to vehicles involved in motor vehicle collisions by damage
severity.
An alternate assumption would be that the additional 86,000 claims reflect
damage to vehicles in non-reported collisions. (See Section III. A.) If so these claims
likely represent vehicles with light damage involved in PDO collisions. Under this
assumption the number of vehicles with light damage would increase by 86,000, the
factors used to allocate damage to vehicles would change slightly and the total estimated
property damage in 2004 would be $2.3 billion.
9. Out of pocket expense by those involved in motor vehicle collisions
Those involved in motor vehicle collisions may incur out-of-pocket expenses:
• Not covered by insurance, including the insurance deductible of the at fault party
and car rental, hotel or other expenses not covered under the policy.
• Not claimed under insurance, possibly as a result of a low dollar value of total
claim.
• Not insured, for example in the case of an uninsured driver.
TNS Canadian Facts, Social and Policy Research 147