Car Wrecks Cost U.S. $150 Billion in 1994

08/08/96

The U.S. Transportation issued a study on Tuesday that said motor vehicle crashes cost the U.S. economy $150.5 billion in 1994. According to the study the public pays about 9 percent of that figure and less than one third is paid by the people involved in the wreck. 55 percent of the cost of wrecks comes from sources like insurance and taxes.

Transportation Secretary Frederico Pena said that the $150.5 billion cost of accidents works out to about $580 for every American, when calculated on a per capita basis. The cost of accidents paid by taxes works out to about $144 per American household.

Pena said that there had been some progress through efforts to stop drunk driving and to promote the use of safety belts and child safety seats. He also said that the costs of motor vehicle crashes, when adjusted for inflation, had declined since 1990, despite 9.5 percent more miles driven.

Paul Dever -- The Auto Channel