Economic Cost of Motor Vehicle Crashes, 1994

Blincoe, Lawrence J. · 1996 · ROSA P / United States. Department of Transportation. National Highway Traffic Safety Administration

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Summary

This report analyzes the economic costs associated with motor vehicle crashes in the United States during 1994. The study calculated the present value of lifetime costs for fatalities, nonfatal injuries, and property damage, encompassing both police-reported and unreported incidents. The total economic cost was determined to be $150.5 billion, with property damage representing the largest share at $52.1 billion, followed by lost market productivity at $42.4 billion. Alcohol-involved crashes accounted for 30 percent of the total costs, while public revenues covered approximately 9 percent of all crash-related expenses. The findings highlight that the majority of crash costs are borne by society through insurance premiums and taxes rather than by individual victims.

Key finding

The total economic cost of motor vehicle crashes in the United States in 1994 was $150.5 billion, with property damage constituting the largest single cost category.

Methodology

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