WASHINGTON — The economic and societal harm from motor vehicle crashes amounted to a whopping $871 billion in a single year, according to a study released Thursday by the National Highway Traffic Safety Administration.
The study examined the economic toll of car and truck crashes in 2010, when 32,999 people were killed, 3.9 million injured and 24 million vehicles damaged. Those deaths and injuries were similar to other recent years.
Of the total price tag, $277 billion was attributed to economic costs — nearly $900 for every person living in the U.S. that year. Harm from loss of life, pain and decreased quality of life due to injuries was pegged at $594 billion.
The safety agency produces such calculations about once a decade.
The economic cost was the equivalent of nearly 2 percent of the U.S. gross domestic product in 2010. Factors contributing to the toll include productivity losses, property damage, and cost of medical and rehabilitation treatment, congestion, legal and court fees, emergency services and insurance administration and costs to employers. Overall, nearly three-quarters of these costs are paid through taxes, insurance premiums and congestion-related costs such as travel delay, excess fuel consumption and increased environmental impacts.
“While the economic and societal costs of crashes are staggering, today’s report clearly demonstrates that investments in safety are worth every penny used to reduce frequency and severity of these tragic events,” Transportation Secretary Anthony Foxx said in a statement.
The impact detailed in the study may help Foxx make his case to Congress that larger fines are needed to deter automakers from concealing safety defects that cause some crashes. Foxx is pressing lawmakers to increase the amount the government can fine automakers for recall violations. Penalties currently are capped at $35 million. Foxx has asked that the lid be increased to $300 million, and some senators have endorsed eliminating the limit entirely.
The most prominent recent example of such violations is General Motors’ (GM) delayed reporting of ignition-switch failures. GM says 13 people have died in crashes linked to the problem, but the head of the safety agency, David Friedman, says it is likely the final death toll will be higher. Friedman recently announced the safety agency will fine GM as much as it is legally allowed to, which was $35 million.
The study cites several behavioral factors that contributed to the enormous price tag created by motor vehicle crashes:
Alcohol-related driving accounted for $199 billion, or 23 percent.
Crashes involving a speeding vehicle accounted for $210 billion, or 24 percent.
Distracted driving accounted for $129 billion, or 15 percent.
Preventable fatalities and injuries attributable to occupants who weren’t wearing their seatbelts accounted for $72 billion, or 8 percent.
In 2010 alone, over 3,350 people were killed and 54,300 were seriously injured unnecessarily because they failed to wear their seat belts.
“Seat belt non-use represents an enormous lost opportunity for injury prevention,” the report said.
What’s going to give you more pleasure –- a new flat-screen TV or an out-of-the-country trip with friends or family? I’ve learned to choose experiences and memories over designer goods and technology.
1. Experiences outweigh possessions
This is a standard lesson. It’s never too early to start saving for retirement. Start putting away small amounts monthly into a Roth Individual Retirement Account today, and automatically to set yourself up for success tomorrow.
2. The Roth IRA is your friend
Nobody will look out for you like you look out for you. If you want something, be proactive. Work for it, ask for it and make a plan to get there.
3. Opportunities (and raises) come a lot faster if you ask for them
Knowing where your money is going is the first step to controlling your finances. Knowing where it should be going is the second. Actually doing something about it is third.
4. Budgets only work if you follow them
Whether your employer is offering a company match in a 401(k) that you’re not utilizing, or you’re not paying off your debt as efficiently as you could be -– stop throwing away perfectly good money!
5. Stop leaving money on the table
Having three to six months of expenses set aside for the unexpected car repair, job loss or family emergency is going to make these events a lot easier to handle.
6. Emergencies will happen
As a 20-something, one of your most important assets is your human capital (or ability to earn an income). The more you learn, grow and challenge yourself, the greater your likelihood to command a higher salary.
7. Investing in your career pays dividends
Whether you’re giving your time or your earnings, donating in service to others provides opportunity for connection, growth and learning — and it can be downright humbling.
8. Giving back is food for the soul
It’s up to you to decide if it’s for better or worse. But communication is key and money should be handled by both of you together, not handed off to one partner.
9. Getting married will change your financial life
Student loans are a lot more manageable if you start dealing with the accruing interest while you’re in college. This will help keep your payments lower, and ensure that you’re putting a bigger chunk towards principal upon graduation.
10. Start tackling student loans while you're still in college
In the event of a car accident, having the right documents and insurance in place will make it easier on you, your family and your loved ones.
11. You may think it won't happen to you — but it can
Having a savings account to handle surgeries, object removals and stitches can save your credit card the burden.
12. Pets can have emergencies, too
Check your score annually using a website like annualcreditreport.com and make note of steps you can take to improve it.
13. Your credit score is your financial report card — don't mess it up
Whether it’s for bill payments, financial deadlines, interviews or travel. Plan to show up or pay early. This adds an extra layer of time protection against unforeseen circumstances, and it prevents late fees, change fees and just plain looking bad.
14. Don't just be on time –- be early
Learn to use credit wisely. Don’t carry a balance on credit cards unless you understand the true cost of the interest.
15. Get out of debt and stay out of debt
Whether it’s a new job, an upgraded car, some type of advanced technology or a consulting fee, do your research and know where the market is priced. Look online for rates, discounts (for products) and don’t be afraid to ask to be paid more or to pay less. The worst that can happen is you’ll be told "no." The best that can happen is that you’ll earn or save more.
16. Do your research
Don’t pretend to understand something if you don’t, and don’t sign a contract without reading it in full. Educate yourself on the ramifications of any financial decision or contract you plan to enter into.
17. Ask questions
This is just a fact of life, and why I subscribe to the lifelong learning model.
18. You'll never know it all
When it comes to money, all work and no play makes it hard to stay motivated on the road to financial freedom. Taking time to celebrate the small wins along the way makes the journey much more enjoyable.
19. Celebrate financial wins
Quantifying goals — by making them Specific, Measurable, Attainable, Relevant and Timely — helps to keep you accountable and invested in your progress.
20. Set SMART goals
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