4 Effects of Road Crashes on the Economy

Highway with cars

 

There’s no doubt that road crashes have a devastating impact on victims and their families. The globe Health Organization states that road crashes kill 1.25 million people and injure 20 to 50 million people once a year. Road crashes, which are commonly responded to by towing companies such as Towing Santa Clara, also bear an important economic cost.

 

Per statistics from the Together for Safer Roads’ Expert Panel report “Investing in Road Safety: a worldwide Imperative for the Private Sector,” crashes come at a value of USD $518 billion each year to the worldwide economy. The white book outlines these eye-opening statistics on the price of crashes.

 

1. It’s a global problem.

The cost of road crashes varies in numerous economies. Consistent with the WHO crashes amount to approximately 1 percent of the gross domestic product (GDP); in middle-income countries, the price is 1.5 percent of the GDP; and in high-income countries, the value is 2 percent of the GDP. Costs as high as 3 percent of the GDP (1, 2) are what some studies even cite. The TSR white book says that the value of crashes within the developing world often exceeds the number of payments that those countries receive in assistance. It also points out that thanks to poor reporting and lack of a central information system, we don’t know the maximum amount as we’d like about the price of crashes in many less developed countries.

 

2. The results are pervasive.

In the U.S., motorcar crashes cost USD $242 billion annually, consistent with the TSR report. That breaks down within the following ways:

 

  • 28 percent property damage;
  • 25 percent workplace productivity loss;
  • 8 percent household productivity loss;
  • 39 percent medical costs, traffic jams, and other costs

 

 

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3. On-the-job deaths leave an enormous void reception and on the task.

In the U.S. alone, road crashes are the quantity one reason for on-the-job deaths. Annually, 2,100 people die and 353,000 are injured in crashes while working, in keeping with the International Labor Organization. In the U.S., direct costs for one traffic fatality are approximately USD$1.4 million, in step with the NHTSA. A majority of these costs—87 percent—are connected to lost productivity at work and reception.

 

4. Employers pay a steep price.

The TSR report notes that every traffic death costs employers approximately USD $3.8 million (USD $500,000 in fringe and non-fringe benefits, and USD $3.3 million in wage-risk premiums) and non-fatal injuries cost approximately USD $128,000. Some industries, in keeping with the report, face a bigger economic burden when it involves traffic injuries. Agriculture and forestry, land transportation, mining, heavy construction, and automotive sales and repair are what those include.

 

Road crashes have an impression that reverberates through every sector and each country. If businesses work together to assist improve road safety, the advantages will spread throughout the economy, with the potential to assist a company’s own bottom line.