How Much Do Vehicle Crashes Cost Americans Every Year?

The amount of money a car accident costs depends on several factors, including the severity of the injuries and property damage involved. There are also costs beyond the more obvious ones for medical treatment and property damage. When accidents occur, and particularly when people are injured or killed, it creates costs like lost workplace productivity, lost household services, legal expenses, and other costs.

If you have been hurt in a car accident, turn to the Law Offices of Micahel J. Gopin, PLLC. Our El Paso accident attorneys have over 50+ years in experience fighting for the rights of car accident victims. We want to help you pursue the compensation you need for your injuries and losses. Call us today for your free initial case review.

Cost of Vehicle Collisions Each Year

According to a study by the National Highway Traffic Safety Administration (NHTSA), roadway incidents cost Americans $340 billion in one recent year. That’s equivalent to $4,140 for a family of four. However, the number doesn’t account for other costs related to car crashes, such as diminished quality of life and similar losses. Including these factors increases the annual cost to $1.4 trillion.

The NHTSA released a report of all factors considered in the study and the costs to Americans each year. They include:

• Medical expenses – $31 billion
• Lost market and household productivity – $106 billion
• Property damage – $115 billion
• Traffic congestion from crashes, including excess fuel consumption, greenhouse gases, travel delay, and criteria pollutants – $36 billion

The report also shows the number of traffic-related deaths was lower than the analysis from a decade earlier, a trend that has recently reversed course and reached record highs, according to the NHTSA. Still, the 36,500 fatalities included in the report accounted for $1.6 million in economic costs for each person.

Long-Term Financial Impact of Car Accidents

While the immediate costs of a car accident are significant, many victims face financial burdens that last for years or even a lifetime. The true cost of a crash extends beyond medical bills and vehicle repairs, impacting a person’s ability to work, maintain their home, and enjoy the same quality of life they once had.

Medical Debt and Ongoing Healthcare Costs

Serious car accident injuries often require extensive medical treatment, including surgeries, rehabilitation, and long-term therapy. Some victims experience chronic pain, mobility issues, or permanent disabilities, leading to ongoing medical expenses that insurance may not fully cover. Prescription medications, physical therapy, and specialist visits add up quickly, creating financial stress for victims and their families.

Lost Income and Employment Challenges

For those who suffer disabling injuries, returning to work may not be an option. Losing a primary source of income can affect a family’s financial stability, forcing them to make difficult decisions about housing, education, and daily expenses. Some victims may need job retraining or career changes, while others may rely on disability benefits that do not fully replace lost wages.

Home and Vehicle Modifications

Injuries that result in permanent disabilities may require modifications to a victim’s home or vehicle. Ramps, stairlifts, widened doorways, and accessible vehicles are necessary for those who have lost mobility but come at a high financial cost. These expenses can quickly deplete savings, leaving victims struggling to adapt to their new reality.

Emotional and Psychological Toll

While difficult to quantify in dollars, the emotional impact of an accident can be just as severe as the physical injuries. Many victims suffer from depression, anxiety, and PTSD, requiring mental health treatment and counseling. These conditions not only reduce overall quality of life but also impact earning potential and personal relationships.

Non-Financial Costs of Accidents

Unfortunately, car accidents cause other consequences besides financial strain. Medical bills can be expensive, but an insurance claim can lead to a settlement covering those costs. However, compensating someone for their physical and emotional suffering is challenging.

Diminished or lost quality of life, physical pain and suffering, emotional distress, and other non-economic losses can significantly affect someone after a car crash. Dealing with chronic pain, post-traumatic stress disorder (PTSD), and other physical or psychological issues can have long-term consequences. An experienced car accident lawyer can also help fight for fair compensation that covers these non-financial losses.

El Paso’s 2023 Traffic Safety Snapshot: Reflecting on the Cost of Road Incidents

In 2023, according to KTSM, El Paso presented a nuanced picture of road safety, with a decrease in overall car crashes to 22,058 from 23,690 in 2022, yet facing a grim outlook with 80 fatalities already reported, nearing the previous year’s total of 82. This contrast highlights the persistent danger on the roads and underscores the economic and emotional toll of vehicle accidents on local communities.

The El Paso experience serves as a microcosm of the national landscape, illustrating the critical need for adherence to safe driving practices and the crucial role of legal advocacy in supporting accident victims. This local data adds depth to the broader discussion on the impact of vehicle crashes, emphasizing both the human and financial costs involved.

Preventative Measures to Reduce Car Accident Costs

While accidents are sometimes unavoidable, there are steps drivers can take to reduce their financial risks and enhance road safety. By implementing these preventative measures, motorists can lower their chances of being involved in costly crashes.

Safe Driving Practices

• Avoid Distractions – Texting, using a phone, or adjusting the radio while driving increases accident risk.
• Follow Speed Limits – Speeding is one of the leading causes of fatal crashes and can result in severe financial consequences.
• Never Drive Under the Influence – Drunk and impaired driving accidents often lead to devastating injuries and legal penalties.
• Wear a Seatbelt – Proper seatbelt use significantly reduces injury severity in a crash.

Investing in Vehicle Safety Features

Many modern cars come equipped with advanced safety technologies that help prevent collisions and reduce injury severity. Some of the most effective features include:

• Automatic Emergency Braking (AEB) – Helps reduce rear-end crashes by automatically applying the brakes if a collision is imminent.
• Blind Spot Detection – Alerts drivers when another vehicle is in their blind spot, reducing the risk of lane-change accidents.
• Lane Departure Warning – Provides an alert if the driver unintentionally drifts out of their lane.
• Adaptive Cruise Control – Adjusts speed to maintain a safe following distance from the vehicle ahead.

Understanding Insurance Coverage

• Carry Adequate Auto Insurance – Make sure you have enough coverage for medical expenses, property damage, and uninsured motorists.
• Consider Personal Injury Protection (PIP) Coverage – This coverage helps pay for medical expenses and lost wages, regardless of who is at fault.
• Review Your Policy Annually – As life circumstances change, updating your insurance policy ensures you have the right level of protection.

Community and Law Enforcement Safety Initiatives

Many Texas cities have implemented safety programs aimed at reducing accidents, including:

• DUI checkpoints to deter impaired driving.
• Speed enforcement cameras in high-risk areas.
• Public safety awareness campaigns promoting defensive driving.

By staying informed and adopting proactive driving habits, individuals can help reduce accident risks and financial burdens associated with vehicle crashes.

Involved in an Accident? Michael Gopin Can Help

Car accidents are costly in terms of money and the damage they do to people’s lives. Many accidents are preventable, but other drivers may act carelessly and wreck into you. If you have been hurt in a collision, a car crash attorney from the Law Offices of Michael J. Gopin, PLLC can help pursue the car accident compensation you deserve.

Call or contact us online for a free consultation with an experienced car accident lawyer in El Paso if you sustained injuries in a car crash due to someone else’s negligence.

Michael J. Gopin

Michael J. Gopin has practiced law in El Paso since 1987. Even after more than 30 years, he still remembers his first jury case. It was two weeks after receiving his license, when he represented a person whose life had been forever changed after being blinded in a work-related incident...