THE ECONOMIC IMPACT OF
MOTOR VEHICLE CRASHES - 2000

The NHTSA report called "The Economic Impact of Motor Vehicle Crashes 2000," was released by Transportation Secretary Mineta on May 9. Mineta reports that the cost has reached $230.6 billion a year, or an average of $820 for every person living in the United States. The report is based on calendar year 2000 data. They calculate the U.S. economic costs of an average roadway fatality at $977,000 and estimates the economic costs associated with a critically injured crash survivor at $1.1 million.

It was determined that in one year, the use of seat belts prevents an estimated 11,900 fatalities and 325,000 serius injuries, saving $50 billion in medical care, lost productivity and other injury related costs. Conversely, the failure of crash victims to wear seat belts leads to an estimated 9,200 unnecessary fatalities and 143,000 needless injuries, costing society $26 billion.

Alcohol-involved crashes resulted in an estimated 16,792 fatalities in 2000, as well as 513,000 nonfatal injuries, and $50.9 billion in economic costs. Such crashes account for 22 percent of all crash costs.

The study determined that excessive driving speed is associated annually with 12,350 fatalities and 690,000 nonfatal injuries. This represents 30 percent of all fatalities and 13 percent of all nonfatal injuries. Crashes in whcih at least one driver was exceeding the legal speed limit or driving too fast for conditions cost $40.4 billion in 2000, or $144 for every person living in the U.S.

NHTSA's study also estimates the yearly economic cost of roadway crashes to include:

$61 billion in lost workplace productivity
$20.2 billion in lost household productivity
$59 billion in property damage
$32.6 billion in medical costs
$25.6 billion in travel delay costs.

About 9 percent of costs from motor vehicle crashes are paid from public revenues. Federal revenues account for 6 percent, while states and localities pay about 3 percent. Private insurers pay about 50 percent. Individual crash victims pay about 26 percent. Third parties, such as charities, health care providers and uninvolved motorists delayed in traffic, pay about 14 percent. Overall, nearly 75 percent of the costs of roadway crashes are paid by those not directly involved - primarily through insurance premeiums, taxes and travel delay. In 2000, these costs, borne by society rather than individual crash victims, totaled $170 billion.

To review the entire study on-line - click here.

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