The employer costs of motor vehicle crashes

Abstract

The latest published estimate of the cost of US motor vehicle crashes to employers is for 1989. This study estimates annual employer costs in 1998 – 2000. Incidence was estimated with occupational injury data and motor vehicle crash data for 1998 – 2000. Employer costs were estimated from Federal estimates of crash costs by source of payment using data on the percentage of varied payment streams (e.g. health insurance, sick leave) paid by employers. Motor vehicle crash injuries on and off the job cost employers almost $60 billion annually, including $16.3 billion in fringe benefit costs; $25.2 billion in property damage, workplace disruption and other non-fringe costs; and $18.4 billion in wage-risk premiums. Traffic safety programmes can reduce the fringe benefit bill without reducing the benefits offered to employees. Eliminating alcohol-impaired and unrestrained driving would save employers $15.2 billion annually.

Keywords:

• Employer costs
• Injury
• Costs
• Motor vehicle crash
• Alcohol
• Safety belt

Acknowledgement

This work was funded in part by NHTSA contract #DTNH22-98-D-35079, Task Order 11 and the US Center for Substance Abuse Prevention contract 277-00-6103. All errors and opinions are solely the authors.