Motor vehicle crashes carry a staggering financial burden that extends far beyond those directly involved in the accidents themselves. According to recent data, the economic toll of these incidents amounted to a staggering $340 billion in the United States in 2019. To put this into perspective, that’s equivalent to a cost of $1,035 for each of the 328 million people living in the country and represents 1.6% of the nation’s $21.4 trillion real gross domestic product for that year.
Spreading the Financial Load
One striking fact is that the financial implications of motor vehicle accidents are not borne solely by those immediately affected. In reality, approximately three-quarters of all crash costs are shouldered by individuals who may never even experience a collision firsthand. These costs manifest in various forms, including increased insurance premiums, taxes, and congestion-related expenses such as lost time, excess fuel consumption, and heightened environmental impacts.
In 2019, taxpayers in the United States collectively paid a hefty $30 billion – roughly 9% of all motor vehicle crash costs. To break it down further, this translates to an additional $230 in taxes for every household in the country.
Understanding the Components of Crash Costs
The broad spectrum of crash costs encompasses a multitude of factors, including medical expenses, lost productivity, legal and court fees, emergency service expenditures, insurance administration costs, congestion-related losses, property damage, and workplace disruptions. It’s important to note that these figures encompass both police-reported and unreported accidents, emphasizing the far-reaching consequences of motor vehicle crashes.
The True Cost of Quality of Life
When we delve into the realm of quality-of-life valuations, the financial impact of motor vehicle accidents becomes even more alarming. In 2019, the total value of societal harm stemming from these crashes reached nearly $1.4 trillion. This figure underscores the immense toll crashes take on our communities, both economically and in terms of well-being.
The Impact of Seat Belts
One bright spot in this otherwise somber narrative is the positive effect of seat belt use. Between 1975 and 2019, the simple act of buckling up saved a remarkable 404,000 lives and prevented a staggering $17.8 trillion in societal harm.
Risky Driving Behaviors and Their Costs
The report also delves into the financial repercussions of risky driving behaviors contributing to accidents resulting in fatalities, serious injuries, and property damage:
Alcohol:
- Alcohol-involved crashes led to 14,219 fatalities, 497,000 injuries, and a financial cost of $68.9 billion in 2019, making up 20% of all crash costs.
- Crashes involving blood alcohol levels of .08 BAC or higher were responsible for over 90% of the economic costs and societal harm attributable to alcohol use.
Distraction:
- Crashes where at least one driver was identified as distracted resulted in 10,546 fatalities, 1.3 million nonfatal injuries, and an economic cost of $98.2 billion in 2019, accounting for approximately 29% of all crash costs.
Failure to Wear a Seat Belt:
- Neglecting to buckle up led to 2,400 avoidable fatalities, 46,000 serious injuries, and a societal cost of $11 billion in easily preventable injury-related expenses, making up around 3% of all crash costs.
- Seat belt usage proved pivotal in preventing over 14,600 fatalities, 450,000 serious injuries, and $93 billion in injury-related economic costs in 2019.
Speeding:
- Speed-related crashes resulted in 10,192 fatalities, 498,000 nonfatal injuries, and $46 billion in economic costs in 2019, constituting 14% of all economic costs.
- These crashes, on average, cost $141 per person in the United States.
It’s essential to note that nearly 95% of individuals who lose their lives on the nation’s transportation networks meet their tragic end on its streets, roads, and highways. Despite this grim reality, roadway fatalities and fatality rates have exhibited a consistent decline over the past three decades, showcasing the potential for continued progress in road safety.