THE ECONOMIC BURDEN OF TRAFFIC CRASHES ON EMPLOYERS: COSTS BY STATE AND INDUSTRY AND BY ALCOHOL AND RESTRAINT USE

Employers pay for injuries that occur both on and off the job. In 1998-2000, motor vehicle crashes annually killed more than 2100 people while they were working and injured 353,000. Over half of the injuries forced people to miss work. Overall, on-the-job crash injuries (fatal and non-fatal) amounted to about 6.5% of all crash injuries. Motor vehicle crash injuries on and off the job cost employers almost $60 billion annually in 1998-2000. One third of this cost resulted from off-the-job injuries to workers and their dependents. Motor vehicle crashes imposed a $16.3 billion health-related fringe benefit bill for employers. Employer health care (medical) cost of crash injuries was $7.7 billion. Another $8.6 billion was spent on sick leave and life and disability insurance for crash victims. Off-the-job crash injuries cost nearly $13 billion, accounting for 80% of the health-related fringe benefit costs of motor vehicle crashes. Off-the-job crash injuries comprised an even larger share of employer health care costs (92%). The annual employer cost of motor vehicle crashes in which at least one driver was alcohol-impaired is over $9 billion, including wage-risk premiums. Restraint non-use by on-the-job employees cost employers over $1 billion a year in fringe benefit costs. A larger $3.9 billion employer bill results from restraint non-use by employees and their benefit-eligible dependents while away from work. Employer costs of motor vehicle crash injuries vary widely by state and industry. These costs exceed $3.5 billion in each of the nation's two most populous states -- California and New York. Costs are highest in the agriculture, land transportation, heavy construction, and mining sectors. When comparing costs between states and industries, one should be aware that differences in injury severity, age or workforce, regional and local characteristics, and completeness of reporting play a significant role in the variance. Prevention is an important way to control health care costs arising from injuries. This report demonstrates that by increasing restraint use and reducing alcohol-impaired driving, the potential health care savings are large. Motor vehicle injury costs to employers are reported on a nationwide, state-by-state, and industry basis. The report updates the national estimates of employer costs of crashes presented in NHTSA's report "What Do Traffic Crashes Cost? Total Cost to Employers by State and Industry" (1996) and adds estimates of alcohol involvement and restraint non-use.

• Record URL:
  http://www.nhtsa.dot.gov/people/injury/airbags/EconomicBurden/index.html
• Corporate Authors:

  National Highway Traffic Safety Administration

  1200 New Jersey Avenue, SE
  Washington, DC  United States  20590
• Publication Date: 2003-12

Language

• English

Media Info

• Features: Appendices; Figures; References; Tables;
• Pagination: 18 p.

Subject/Index Terms

• TRT Terms: Costs; Drunk driving; Economic impacts; Employers; Fatalities; Health care; Industries; Injuries; Insurance; Prevention; Restraint systems; States; Traffic crashes
• Uncontrolled Terms: Medical costs
• Subject Areas: Economics; Finance; Highways; Safety and Human Factors; Security and Emergencies; Society; I10: Economics and Administration; I81: Accident Statistics;

Filing Info

• Accession Number: 00970385
• Record Type: Publication
• Report/Paper Numbers: HS-809 682
• Files: HSL, TRIS, USDOT
• Created Date: Mar 3 2004 12:00AM