DUINHTSA Estimates Crash Cost To Americans
FOR IMMEDIATE RELEASE
Thursday, August 7, 1996
NHTSA 43-96
Contact: Barry McCahill
Tel. No. (202) 366-9550
Secretary of Transportation Federico Peša today released a new study of the economic impact of motor vehicle crashes on the U.S. economy, detailing a staggering $150.5 billion cost in 1994 alone.
"While one cannot measure in dollars the pain and anguish caused by the loss or injury of loved ones, the annual economic impact of motor vehicle crashes alone is the equivalent of $580 for every American," Secretary Peša said in a Washington, D.C., meeting with businesses, safety experts and law enforcement officers. "We need every driver to follow the rules of the road and all motorists to wear their safety belts and make sure children are in properly installed child safety seats."
"President Clinton and I made transportation safety our top priority, and there is progress to report, including reductions in drunken driving and more safety belt use, but we must continue to do all we can to make our highways safer," Secretary Peša said. "All of us have a responsibility when it comes to highway safety and together we can meet that challenge."
Crash costs funded through public revenues cost taxpayers $13.8 billion in 1994, the equivalent of $144 taken from the taxes paid by every household in the United States, according to the study conducted by the National Highway Traffic Safety Administration.
According to the study, less than a third of crash costs are paid by those involved in the crash. The remaining costs are spread among the general population through insurance premiums (55 percent), public tax revenues (9 percent), or other sources such as charities or medical providers (7 percent). Public tax revenues pay for an even higher portion, 24 percent, of first-year medical care costs.
Secretary Peša pointed out that crash costs are typically thought of in terms of hospital bills, but medical care accounts for just 11 percent of the total cost. The biggest share of cost comes from property damage, which accounts for 35 percent of the total. Although property damage is a relatively small cost on a per-case basis, the sheer volume of low speed crashes that involve no injury makes them a significant economic cost. Other costs include lost productivity, emergency services, legal and court expenses, insurance administration, vocational rehabilitation, workplace costs, and travel delay.
Secretary Peša said that while the costs are staggering, there is progress. He cited gains in the fight against drunk driving and in safety belt and child seat use, and said that costs, if adjusted for inflation, actually have declined since 1990.
He also noted the following found in the study:
The number of vehicle miles traveled rose by 9.5 percent since 1990, but the rate of injury has declined during the same period. If fatality and injury rates had remained at the higher 1990 levels, 1994 crash costs would have been nearly $30 billion (or 20 percent) higher than the $150.5 billion that actually occurred.
Between 1990 and 1994, safety belt use rose from 49 percent to 67 percent, and the portion of fatalities that occurred in alcohol-involved crashes dropped from 50 percent to 41 percent.
During the same time, there was a steady increase in the portion of the vehicle fleet with improved safety features such as air bags, rear seat lap/shoulder belts, and center high mounted brake lights.
The analysis, done by the department's National Highway Traffic Safety Administration, covered costs resulting from 40,716 deaths, 5.2 million injuries, and 27 million damaged vehicles during the year.
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