AAA says accidents more costly than congestion
Automobile accidents frequently result in a large bill for the offending party. AAA wants us to know that it doesn't stop there, either. The automotive service group has released the results of a study indicating that vehicle wreckage costs the average American more each year than traffic congestion. The research was conducted by Cambridge Systematics, which drew the $1,051 yearly cost per person total from a combination of medical expenses, emergency and police services, property damage, and lost productivity. Compared to the annual congestion report issued by the Texas Transportation Institute, the price is nearly 2.5 times the $430 yearly expense one incurs due to clogged roadways. AAA's aim with the report is to direct more focus on increasing vehicle safety. It is no surprise since they are in the business of auto insurance, and if accidents are costly to anyone, it is the insurance companies. [Source: CNN Money]
_opt_thumbnail.jpg)
_thumbnail.jpg "2011 Audi A8: Live from Miami")
Reader Comments (Page 1 of 1)
riskylogic 8:25PM (3/06/2008)
How many of the accidents are avoided by hving more congestion? Not all of them, for sure. Perhaps less than 40%.
Furthermore, let us also consider how many accidents are caused by having more congestion.
If stoplights never turned green, then I suppose we could eliminate accidents. We would never get anywhere either. A false choice.
Reply
cheezwiz 9:23PM (3/06/2008)
"$1,051 yearly cost per person total from a combination of medical expenses, emergency and police services, property damage, and lost productivity"
Of those costs, insurance only pays back for the property damage and medical expenses - minus a deductible in most cases. This means accidents cost insurance companies well under $1k/person annually.
Any idea what the average person pays for insurance annually? I'll bet it's far above $1k.
How can I start an insurance company?
Reply
Mars 10:14PM (3/06/2008)
openning an insurance company is a good idea??? i do not think so.
LeRobert 10:12PM (3/06/2008)
Congestion is the root of the problem after all. It causes road rage and induces frustrated drivers to take risks in order to get slightly ahead. And on another note, does the TTI report take into account all the indirect health costs of congestion? Air pollution, stress, high blood pressure, and even hemorrhoids from sitting hours in cramped seats!
Reply
Polly Prissy Pants 11:07PM (3/06/2008)
BS. Doing a rough calculation here says that if I lose 20 minutes a day times 5 days a week times 50 weeks a year means I lose 83 hours per year. Assuming a mean income of around $50k per year that's over $2000 right there. If my gas mileage drops from 18 to 16 mpg then at 12k miles per year and $3 gas that's another $250. Including wear and tear on the car I'd say a good estimate is an extra $2500 to $3000 per year merely due to congestion, just a hair larger than their $430 estimate.
It's a no-brainer that congestion costs the U.S economy significantly more than accidents, but I guess when you sponsor the survey you get the results you pay for.
Reply
strdust 12:50AM (3/07/2008)
actually the AAA is non profit, so most of their profit get return to their member. I wonder if they take into account the congestion cause by accident though, isn't that how most of our congestion happen in the first place? Peak hour traffic can move somewhat smoothly if people stop making stupid move on the freeway. O well it always work in simulation :-P
Reply
paul34 12:59AM (3/07/2008)
The solution is not vehicle safety. The solution is better driving training.
The American mentality is to increase a vehicle's safety in response to the threat of the traffic accident. While this is certainly wise, the better option would be to combine this with significantly increased driving training.
In most of this country, there really is no such thing as driver training.
Avoid the accident completely, and hopefully you'll never have to use all those fancy safety features. Plus, maybe we won't have to use as many - meaning lighter cars - meaning better nationwide average MPG which means everyone wins.
Reply
dinnercoat 1:56AM (3/07/2008)
I fully agree, we need more stringent driving training right out of the gate. It would also help if various state Highway Patrols would issue citations more so for bad driving habits rather than just simply citing for speeding; example going slow in the fast lane, weaving (while speeding), failing to provide proper space between you and car ahead, taking someones safety buffer just to gain a little space, "cutting in line" (when a line has formed to pass an 18 wheeler and someone speeds up in the right lane to bypass the line and not wait), just things like that which I never seem to hear anyone getting in trouble for.
Leaf 10:55AM (3/07/2008)
YES! Good to see some people making sense.
Brian 10:25AM (3/07/2008)
You write, "...if accidents are costly to anyone, it is the insurance companies."
How do you figure that? Yes, insurance companies make the one-time payouts when people crash their vehicles, but insurance premiums are designed to cover to cost of payouts and the insurance company is investing those premiums in the meantime.
Your story should read, "...if accidents are costly to anyone, it is accident-free drivers who must endure high premiums that result from the inattentiveness and irresponsibility of others."
Reply