Ontario regulation 376/02 made under Highway Traffic Act reads:

"total loss" means, with respect to a vehicle, a vehicle that has been damaged by collision, impact, fire or flood, or has been stolen and dismantled, such that the estimated costs of repairing it exceeds the difference between the fair market value of the vehicle immediatley before it was damaged or stolen and its salvage value.


The mandate is for the appraiser to use retail prices in a retail marketplace in repairing the vehicle for estimating purposes using manufacturer's repair recommendations.

Simply put, the regualtion identifies if the vehicle is total loss and removes both the insurance appraiser or shop estimator feelings or values. This does not prevent an insurer from classifying a vehicle as total loss when it is not, but a total loss would normally need a "brand identifier" which now can not be legally applied. Hence the new owner of the vehicle-the insurer- is guilty of an offense under branding legislation and the vehicle brand is then appealable and the vehicle can be repaired. This is often where we see insurers lose a lot of money and face potential charges, court action and fines that could have been avoided if they had not total lossed the vehicle improperly.