The High cost of Auto Crashes

We — especially in the insurance industry — know that even if we’re not involved in auto crashes, they cost us money. Damages paid out by insurers are passed onto consumers via premium increases.

A study by the National Highway Traffic Safety Administration (NHTSA) said people not directly involved in a crash pay about 75% of all crash costs via premium hikes, taxes, traffic congestion because of a crash, excess fuel consumption and the impact of those crashes on the environment.

All total in 2019 — the latest year for crash figures — crashes cost 1.6% of the nation’s $21.4 trillion gross domestic product. Breaking it down, that number is $340 billion, or just a touch over $1,000 for each of the nation’s 328 million people.

BTW, agency administrator, Ann Carlson said the study showed the 2019 crashes killed 36,500 people and injured 4.5 million more. Over 23 million vehicles were damaged.

“This report drives home just how devastating traffic crashes are for families, and the economic burden they place on society,” she said.

Then Carlson switched to more current numbers. She said in 2021, close to 43,000 people died on U.S. streets, roads and highways. That’s the highest number in 16 years and a 10.5% increase over the 2020 figures.

Source link: Insurance Business America —

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The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


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