Every year, millions of people are injured and killed in car accidents, leaving devastating physical and emotional effects on the victims and their families. Still, the impact of traffic collisions does not end there. It also affects the economy, costing at least a trillion dollars to the economy every year.
If you’ve been in an accident and need assistance finding legal representation, contact the attorney and medical referral service 1-800-Injured. Here is more on the economic impact of car accidents.
Types of Car Accidents With the Highest Economic Impact
Distracted Driving
Driver distraction is one of the biggest causes of car accidents in the U.S., leading to 3,000 fatalities every year. In 2019, the economic losses from accidents involving at least one distracted driver were around $98.2 billion. This accounted for around 29% of total accident costs of the year.
Drunk Driving
Every 45 minutes, a person loses their life in a drunk driving accident, making it one of the deadliest types of accidents in the country. Given that the injuries suffered by victims of drunk driving accidents are much more severe, accidents caused by alcohol-impaired drivers result in an average of $68.9 billion in economic losses yearly in the United States.
Lack of Seatbelts
Not wearing a seatbelt can lead to grave consequences in the event of an accident. According to the Centers for Disease Control and Prevention, one in seven people do not wear seatbelts. Failure to buckle up accounts for 3% of all economic costs related to accidents, costing $11 billion every year.
How Car Accidents Impact the Economy
Medical expenses following a car accident have the highest economic impact as they account for at least 39% of all costs associated with an accident. In 2017 alone, productivity losses and medical care for injuries cost more than $75 billion. In addition, medical bills for rehabilitation and medical expenses following an accident are also costly, costing around $23.3 billion a year.
Vehicle damage also contributes to the economic impact of car accidents. Repairs and replacement of totaled vehicles account for 28% of all crash costs. Sometimes there is also damage to expensive personal property such as smartphones. So, overall, property damage can cost around $76 billion every year.
Car accidents can sometimes put people out of work for a while. In extreme cases, the victim may be unable to return to work for the rest of their lives. Wage and productivity losses cost the economy around $58.2 billion per year. According to the NHTSA (National Highway Traffic Safety Administration, the cost of one traffic fatality in the U.S. is around $1.4 million, of which 87% is related to productivity losses.
Employers may be required to pay for expenses associated with accidents that occur on the job. This payout can be around $8 billion every year. Traffic congestion resulting from a car accident also significantly impacts the economy. The loss of productivity resulting from this congestion can cost $87 billion.
With the evolving driving laws and enhanced safety features in vehicles in the automotive industry, traffic collisions and their skyrocketing economic impact can be lessened. An experienced car accident lawyer can help victims of car accidents recover compensation for their suffering.