How do Road Accidents cost us money?
- Lost Output – Loss of productivity capacity of an individual as a result of an injury or fatality.
- Medical and Ambulance – cost of medical facilities and personnel.
- Human – pain and distress felt by the accident victims and relatives. Costs based on peoples Willingness to Pay (WTP) for reductions in risk of occurrence.
- Police – time spent attending and reporting accidents by police officers.
- Insurance and administrative – based on the average time spent processing insurance claims, plus overheads and expenses.
- Damage to property – this includes damage to vehicles and other third party property.
Global burden of road traffic accidents
- Nearly 1.3 million people die in road crashes each year, on average 3,287 deaths a day.
- An additional 20-50 million are injured or disabled.
- More than half of all road traffic deaths occur among young adults ages 15-44.
- Road traffic crashes rank as the 9th leading cause of death and account for 2.2% of all deaths globally.
- Road crashes are the leading cause of death among young people ages 15-29, and the second leading cause of death worldwide among young people ages 5-14.
- Each year nearly 400,000 people under 25 die on the world’s roads, on average over 1,000 a day.
- Road crashes cost USD $518 billion globally, costing individual countries from 1-2% of their annual GDP.
- Road crashes cost low and middle-income countries USD $65 billion annually, exceeding the total amount received in developmental assistance.
- Unless action is taken, road traffic injuries are predicted to become the fifth leading cause of death by 2030
Source: Association for Safe International Road Travel (2015)
Table below: Marginal accident cost estimates, €ct/vkm (based on 2010 prices)
Taken from Table 12 of Update of the Handbook on External Costs of Transport, Ricardo-AEA, 2014