According to the National Safety Council (NSC), motor vehicle collisions are the leading cause of death and injury in the workplace. The cost of just a single car accident could easily cost your company over $1.4 million. A report from Motus, a vehicle management and reimbursement platform, found that the number of auto accidents and injuries remain at record-high levels, and 40% of vehicle crashes are work-related.
There are more than just financial expenses at stake – the highest car accident costs are the loss of human lives. However, even a minor accident can result in some big costs to all those involved. OSHA reports that car accidents can cost a company around $66 billion in lifetime medical costs alone. The lifetime work lost from these car accidents costs an estimated $33 million. Knowing the high cost of car accidents makes it clear that more needs to be done to keep your workforce safe on the roads.
The Average Cost of Car Accidents
The Motus study reports that in 2017, vehicle accidents cost employers $56.7 billion. The expenses to companies after an employee in injured in a car crash include:
- Medical costs
- Insurance increases
- Leave wage replacement
- Property damage
Motus also stated that U.S. collision insurance claims remain at the highest levels of the past 10 years and have been steadily increasing for the last five years. When an employee is injured in a car accident, 53% of those employees will miss work. Shockingly, only 42.6% of companies require employees to participate in driver safety training programs for employees in company-owned vehicle programs.
OSHA reported that the average car accident will cost an employer around $16,500, however, an on-the-job crash that results in an injury can cost upwards of $74,000. The cost of a fatality or serious injury due to a car accident cost the company $500,000.00 or greater.
The indirect costs to an employer are just as important to consider, too. Loss of employee time on the job results in more work for everyone else on the team, which could mean overtime pay for other employees to ensure the missing employee’s work is being covered. Plus, the bad publicity that could surround your organization after a crash can lead to less business overall when your reputation is harmed.
With the direct and indirect costs involved, the attached worksheet may help you understand how much each motor vehicle accident is actually costing your company.
Reducing Car Accident Costs with Driver Training Programs
These car accidents and the costs associated with them are all largely preventable. By providing corporate driver training to your employees, you’ll help reduce the occupational driving risks they face every time they get behind the wheel. Companies who invest in driver training for their employees see such positive impacts as a reduced number of motor vehicle crashes, more seat belt use, less workers’ compensation claims, and most importantly, saved lives.
Get a program implemented as soon as possible. If you can, calculate the car accidents costs you already know your company has incurred so you can really see how much you’d benefit by starting a corporate driver training program. Encourage employees to see the value in driver training, too. Reduce their risks, reduce your costs, and help save lives.
DriveTeam’s Corporate Driver Training Program has helped reduce corporate motor vehicle crashes by 35% or greater annually and lower costs for your company. DriveTeam’s hands-on, interactive approach has helped many companies, large to small, across the country. Contact us for more information.