Keith Vodden Dr. Douglas Smith - Transports Canada
Keith Vodden Dr. Douglas Smith - Transports Canada
Keith Vodden Dr. Douglas Smith - Transports Canada
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Analysis and Estimation of the Social Cost of Motor Vehicle Collisions in Ontario<br />
wait times. A useful rule of thumb is $0.30 to $0.32 per pound of vehicle towed. So an<br />
average automobile of 1,500 lbs is $450 to $500 and a large truck is $15,000 to $30,000.<br />
Since large trucks make up only 2% (17,849 of 853,902) of vehicles involved in<br />
collision in 2004 and commercial vehicles are more likely to be self insured (not covered<br />
by insurance claims, we make the simplifying assumption that most vehicles requiring<br />
tows will be automobiles or light trucks with an average tow charge of $500 in 2004.<br />
Based on these costs per tow and the number of tow truck services presented<br />
earlier we estimate the social costs of tow truck services in 2004 at $95.6 million.<br />
8. Property damage and other losses generally covered through<br />
insurance<br />
Property damage caused by motor vehicle collisions is generally covered through<br />
the insurance claims of involved parties. In addition, claims cover a number of other<br />
incurred losses due to the collision such as tow trucks, damaged vehicle storage, car<br />
rental, or hotel accommodation. We include these losses (other than tow truck services<br />
discussed earlier) attributable to the motor vehicle collision in our estimate of property<br />
damage and other losses generally paid for through insurance claims. We also include the<br />
claims and adjustment expenses incurred by insurance companies and recorded in the<br />
data available to us from the Insurance Bureau of <strong>Canada</strong> (IBC). As a final note on<br />
coverage, we do not estimate property damages that would be borne by the “at-fault”<br />
driver as the deductible not reimbursed under collision and all perils claims. This<br />
deductible not included in the claims payouts is included in out-of-pocket expenses<br />
discussed in another section.<br />
Property damage and the other losses discussed earlier are covered under the third<br />
party liability, collision and all perils insurance coverage of insured parties 1 . In addition a<br />
special insurance fund covers claims against uninsured (or unidentified) automobiles and<br />
under-insured drivers. However, claims within some of these categories may also include<br />
other items not relevant to our estimate of the social cost of motor vehicle collisions. For<br />
example:<br />
• Third party liability includes claims for bodily injury.<br />
• All perils include comprehensive coverage (fire, theft).<br />
• Uninsured automobiles include claims for bodily injury and death.<br />
In addition, some vehicle owners self-insure (do not have coverage for collision<br />
damage to their vehicle if they are found to be “at fault”). We include the proportion of<br />
commercial vehicles that self-insure based on the proportion without some form of<br />
collision coverage beyond mandated third party liability in our analysis. (Loses to private<br />
1 We include coverage of private passenger vehicles and motorcycles, commercial vehicles, farmers, snow<br />
machines, buses, ambulances, interurban trucks, trucks for hire, taxicabs, miscellaneous public<br />
automobiles (rental cars), and other types of specialty vehicles.<br />
36 TNS Canadian Facts, Social and Policy Research