Economic and Societal Impact of Car Accidents [New Study]

close up of car accident damage

For well over 130 years, the automobile has steadily remained one of the greatest inventions our society has ever created. Sadly, this invention has come with a horrific amount of accidents, which has left a major impact on the United States economy in several different ways. However, modern technology has made a few to zero accident rate a possible and realistic goal in the upcoming future.

The High Costs of Car Accidents

Across the United States, there are millions of drivers who are operating heavy machinery every day, which make accidents and crashes inevitable. In 2016 alone, it was reported that over 40,000 deaths and even more injuries took place on the road. In 2018 the accident numbers did somewhat decline, yet still remained over 36,000.

In the very populated Northeast cities, it’s the inclement weather and old roads that claim the highest vehicular deaths with well over 16,000. In the rural areas with smaller populations, these regions only claim at least 4,000 to 8,000 of automobile deaths.

It’s also worth mentioning that such numbers include the collateral damage that comes with vehicular accidents. The $76,000,000,000 worth of property damage. The $57,000,000,000 worth of productivity loss for household and employment. The $23,000,000,000 worth of rehabilitation and medical care. The $20,000,000,000 worth of insurance costs. Sadly, these costs are only the tip of the iceberg.

Reducing Accidents & Costs

Whether it be a multiple vehicle pile up or a small fender bender, many accidents on the open road can be prevented beforehand. Such common accidents are:

  • Speeding is the cause of many car accidents. Such accidents cost the United States $59,000,000,000 dollars, or at least $191 per individual in taxes.

  • Distracted driving and drunk driving accidents cost between $46,000,000,000 and $49,000,000,000 for the United States, which roughly equates to 17-18 percent of the total losses.

  • Bicyclists and pedestrian accidents account for at least 7% of the United States economic loss, which roughly reaches $19,000,000,000 in damages.

By simply following the road laws and making driving situations safer, there could be both a decrease in the collateral damage that comes with accidents and improve the bottom line that effects our economy.

High Hopes For The Future

Thankfully, the functionality and design of what the automobile industry is providing is increasingly progressing in favor for safer customers. As these safety measures move forward during the creation of the vehicles, driving laws are updated to make sure that the driver (and their passengers) get to their destination safely. For example: Federal government believes that self-driving automobiles will play a major factor in getting the highway fatality rate down to zero in thirty years. Why? Well, self-driving vehicles significantly decrease the economic toll and human toll that vehicle accidents come with.

As far as numbers, self-driving vehicles may eliminate 90% of automobile accidents in the United States, save at least 300,000 lives every decade, prevent health cost and damages incurred by accidents by $190,000,000,000 every year, and reduce one’s insurance by at least 40%.

Although the future is looking great, we’re still in the present and accidents are still a part of our everyday life. If you or someone you know has been a victim in a car accident, educate yourself on when you should hire an attorney and contact us today for further information on how our attorneys can serve you.