Economic Cost of Car Accidents: Global, US, State and You
After a car accident in San Diego, your first thought (after tending to injuries) may be how much it will all cost. This is a significant question that plagues not just individuals, but the State of California, the USA, and the world. Car accidents take a major toll on the economy, costing billions in healthcare and property damage. As an individual, you’re probably most worried about who will pay for your damages. Looking at the bigger picture, however, can give you an idea of where the global economy finds money to pay for it all.
The Financial Impact of Car Crashes
According to the Centers for Disease Control and Prevention (CDC), an average of 30,000 people die in car accidents each year in the United States. This results in about $44 billion in U.S. car accident costs, based on work lost cost and medical care. That’s $44 billion on fatal accidents alone, not those that only resulted in injuries or property damage. Private insurers pay the majority of national car accident costs, followed by individual crash victims and third parties such as healthcare providers. Annual costs of car crashes are as follows:
- Global: $518 billion. Car accidents are the eighth leading cause of death globally. About 1.3 million people die in car accidents around the world every year. An additional 20 to 50 million suffer injuries. These accidents cost individual countries about 1-2% of annual GDP. The total cost of car accidents (not including the costs of societal harms) is about $518 billion annually.
- U.S: $871 billion. The National Highway Traffic Safety Administration estimates that car accidents cost the U.S. $871 billion per year in economic costs and societal harms. This includes lost productivity, court costs, medical costs, emergency services, insurance administration costs, and property damage. Looking at just economic costs, crashes in the U.S. cost about $230.6 billion annually.
- California: $4,480 million. According to the CDC, California spends about $4,480 million in car accident expenses every year. The majority of these costs go toward medical insurance. The state loses money in medical costs, lost workplace productivity, vehicle repairs, environmental costs, legal costs, and insurance costs.
Car accidents take more of a toll on the economy than one might think. The best way to lower these costs for the country and around the world is to reduce the number of accidents. Studies show the most common factors that contribute to car accidents are speeding, alcohol consumption, and driver error. Eliminating these three causes would save thousands of lives every year.
How Much Does an Accident Cost You?
The average cost of an individual car accident in California depends on the extent of injuries and property damage. Minor accidents can result in around $3,000 in medical costs, plus lost wages and property damage. More severe crashes, however, can amount to about $500,000 or more in medical costs. The injured party picks up about 23% of the total cost of a car accident. This can be substantial depending on the severity of the incident. Keep in mind that these estimates don’t account for non-economic damages such as pain and suffering.
No amount of money can replace the life of a lost loved one. After an accident in San Diego, retain an experienced attorney to help you recover the costs from the at-fault party.