THE TOPIC

MAY 2010

The cost and crashworthiness of vehicles as well as drivers’ safety habits affect the cost of auto insurance. In 2008, 37,261 people died in motor vehicle crashes and an additional 2,346,000 people were injured, according to the U.S. Department of Transportation. Out of concern for public safety and to help reduce the cost of crashes, insurers support safe driving initiatives. In 1969 the insurance industry created the Insurance Institute for Highway Safety, an organization best known for its vehicle crashworthiness testing program. In the 197os the industry began the campaign to get auto manufacturers to make air bags standard equipment in vehicles. It is a major supporter of antidrunk driving and seatbelt usage campaigns. Drivers themselves have also contributed to the reduction in crash-related fatalities by demanding safer vehicles.

KEY STATISTICS 

• Motor vehicle crashes are the leading cause of death for individuals between the ages of three and 34 except for seven-year olds (based on 2005 data).
• A motor vehicle death occurs on average every 14 minutes and an injury every 13 seconds. About 102 people died each day in motor vehicle crashes in 2008.
• Since the first documented crash death in 1899, more than 30 million people worldwide have died in traffic crashes. 

FATALITIES AND INJURIES

• 2009: The U.S. Department of Transportation's National Center for Statistics and Analysis of the National Highway Traffic Safety Administration (NHTSA, http://www.nhtsa.dot.gov) released a projection of fatalities in March 2010 that shows that 33,963 people died in motor vehicle traffic crashes in 2009. This represents a decline of about 8.9 percent compared with the 37,261 fatalities that occurred in 2008. If these projections hold true when final numbers are reported, fatalities will be the lowest on record (since 1954). In addition, the fourth quarter of 2009 will be the 15th consecutive quarter of declines in fatalities from the same quarter of the previous year. The fatality rate for 2009 appears to have declined to the lowest on record, or 1.16 fatalities per 100 million vehicle miles traveled. In 2008 the rate was 1.25 fatalities per 100 million vehicle miles traveled.
• 2008: Although passenger car occupant fatalities fell for the sixth straight year and light truck fatalities fell for the third year running, motorcyclist fatalities continued their 11-year increase.
• Severity of Crashes: In 2008 there were 5,811,000 police-reported motor vehicle traffic crashes, down 3.5 percent from 6,024,000 in 2007. Of total crashes, 1,630,000 caused injuries and 4,146,000 caused property damage only. NHTSA estimates 10 million or more crashes go unreported every year.
• Work-Related: In 2008 crashes involving vehicles on public roadways were the leading cause of work-related fatalities, according to the U.S. Bureau of Labor Statistics, accounting for 23 percent of all fatal work injuries.
• By Age Group: In 2008 older people (65 and older) made up 15 percent of all traffic fatalities, 14 percent of vehicle occupant fatalities and 18 percent of pedestrian fatalities, in large part because they are frailer and more likely to die from their injuries than younger people. (See Older Drivers paper.) In 2007 (latest data available) there were 31 million older licensed drivers, up 19 percent from 1997. The total number of drivers rose only 13 percent from 1997 to 2007. In 2008 drivers between the ages of 15 and 20 accounted for 12 percent of all drivers in fatal crashes and for 14 percent of all drivers in police-reported crashes. In 2007 (latest available data) drivers in this age group accounted for 6.4 percent of all licensed drivers. To reduce high accident rates among young drivers, states are increasingly adopting graduated driver license programs, which allow young drivers to improve their skills and driving habits. (See Teen Driving paper).

By Driver Behavior

• Speeding: In 2008, 11,674 lives were lost due to speed-related accidents. Speeding was a contributing factor in 31 percent of all fatal crashes. In 2008, 37 percent of 15- to 24-year-old male drivers who were involved in fatal crashes were speeding at the time of the crash. NHTSA says that speed-related crashes cost Americans $40.4 billion each year. A crash is considered speed related when the driver is charged with a speed-related offense or a law enforcement officer indicates that exceeding the posted speed limit, driving too fast for conditions or racing was a contributing factor.
• Drunk Driving: Alcohol-impaired crashes are those that involve at least one driver or motorcycle operator with a blood alcohol concentration (BAC) of 0.08 percent or above, the legal definition of drunk driving.  In 2008, 11,773 people died in alcohol-impaired crashes, down 9.7 percent from 13,041 in 2007. In 2008 alcohol-impaired crash fatalities accounted for 32 percent of all crash deaths. (See Drunk Driving paper.) There is an alcohol-impaired traffic fatality every 45 minutes.
• Drunk Driving and Speeding: In 2008, 41 percent of intoxicated drivers (with a blood-alcohol content at or above 0.08 percent) involved in fatal crashes were speeding, compared with 15 percent of sober drivers involved in fatal crashes.
• Red Light Running: The Insurance Institute for Highway Safety (IIHS, http://www.iihs.org/ ) says that more than 900 people a year die and nearly 2,000 are injured as a result of vehicles running red lights. About half of those deaths are pedestrians and occupants of other vehicles who are hit by red light runners.
• Fatigue: NHTSA statistics show that at least 100,000 crashes and 1,500 deaths each year are the result of drivers falling asleep at the wheel. A 2002 poll conducted by the National Sleep Foundation found that 100 million drivers, close to half of American adult drivers, drive while drowsy and nearly two out of ten admitted to having fallen asleep at the wheel. New Jersey passed a law in 2003 that equates falling asleep at the wheel with reckless driving, and if a driver falls asleep and kills someone in a crash, he or she can be charged with vehicular homicide and serve up to ten years in jail and pay fines. Although at least four states have considered similar legislation, New Jersey is the only state with such a law on the books.
• Distracted Driving: The National Highway Traffic Safety Administration (NHTSA) estimated in 2010 that 6,000 deaths and half a million injuries were caused by distracted driving in 2008.
• In April 2010, Transportation Secretary Ray LaHood announced a pilot program to stop motorists from texting or talking on cellphones. Drivers in Syracuse, New York, and Hartford, Connecticut, will be targeted by ticketing blitzes and ads that emphasize the dangers of distracted driving. The one-year program will be funded by $2.2 million in federal and state money. The program's slogan is "Phone in One Hand. Ticket in the Other." The initiative will also encourage automakers to reconsider the installation of hands-free communications systems in cars.
• Some form of driver inattention was involved in almost 80 percent of crashes and 65 percent of near-crashes within three seconds of the event, according to an April 2006 study conducted by the Virginia Tech Transportation Institute and the National Highway Traffic Safety Administration (NHTSA). The 100-Car Naturalistic Driving Study broke new ground—earlier research found that driver inattention was responsible for 25 to 30 percent of crashes. The 2006 study found that the most common distraction was the use of cellphones, followed by drowsiness. However, cellphone use was far less likely to be the cause of a crash or near-miss than other distractions. For example, while reaching for a moving object such as a falling cup increased the risk of a crash or near-crash by nine times, talking or listening on a hand-held cellphone only increased the risk by 1.3 times. The study tracked the behavior of the 241 drivers of 100 vehicles for more than one year. The drivers were involved in 82 crashes, 761 near-crashes and 8,295 critical incidents. (See also Cellphones and Driving.)
• Cellphone Use: In September 2009 the National Highway Traffic Safety Administration and the National Center for Statistics and Analysis released the results of their National Occupant Protection Use Survey (NOPUS), which found that in 2008, 6 percent of drivers used hand-held cellphones, the same percentage as in 2007. Hand-held cellphone use was highest among 16 to 24 year olds (8 percent in 2008, down from 9 percent in 2007) and lowest among drivers 70 and older (1 percent in both 2007 and 2008). Hand-held cellphone use by drivers in the West increased from 6 to 7 percent from 2007 to 2008, but fell in the Northeast (from 5 to 4 percent), the Midwest (from 6 to 5 percent) and the South (from 8 to 7 percent). Data on driver cellphone use were collected at random stop signs or stoplights only while vehicles were stopped and only during daylight hours. (See also Cellphones and Driving paper.)
• Many studies have shown that using hand-held cellphones while driving can constitute a hazardous distraction. However, the theory that hands-free sets are safer has been challenged by the findings of several studies. A study from researchers at the University of Utah, published in the summer 2006 issue of Human Factors concludes that talking on a cellphone while driving is as dangerous as driving drunk, even if the phone is a hands-free model. An earlier study by researchers at the university found that motorists who talked on hands-free cellphones were 18 percent slower in braking and took 17 percent longer to regain the speed they lost when they braked.
• In October 2009 the President issued an executive order banning federal employees from texting while driving a federal government vehicle, driving their own vehicle while on government business or driving and using a government-issued device. In January 2010 the federal government prohibited texting by interstate truckers and operators of vehicles carrying eight passengers or more.
• Cost of Crashes in Urban Areas: The societal cost of crashes is $164.2 billion annually, according to a 2008 report by the American Automobile Association, based on its analysis of 85 urban areas. Crashes were much more costly than congestion, which the study puts at $67.6 billion per year. The cost of crashes per person decreases as the size of the metropolitan area increases, while the cost of congestion escalates with an increase in city size.
• Hit and Run Crashes: According to the National Highway Traffic Safety Administration (NHTSA) there were 1,106 fatal hit and run crashes in 2005, that is, crashes where the driver left the scene after a collision with a person not in a motor vehicle. In this analysis NHTSA does not include hit and run collisions between vehicles only. Hit and run crashes in 2005 were up 20.6 percent from 917 in 2000. In 2005, 2,610 people died in these crashes, a 14.4 percent increase from 2,281 in 2000. There were 1,231 vehicles involved in these crashes in 2006, up 20.0 percent from 1,026 in 2000.
• Deer Collisions: State Farm estimates that 2.4 million collisions between deer and vehicles occurred in the U.S. during the two-year period between July 1, 2007 and June 30, 2009, 18.3 percent more than five years earlier. One deer collision occurs every 26 seconds, although they are much more likely during the last three months of the year and in the early evening. Among the 35 states where at least 7,000 deer-vehicle collisions occur per year, New Jersey and Nebraska have posted the largest increases, 54 percent each, followed by Kansas, up 41 percent, and Florida, Mississippi and Arkansas, up 38 percent.
• For the third year in a row, West Virginia tops the list of those states where a collision with a deer is most likely. Using its claims data in conjunction with state motor vehicle registration counts from the Federal Highway Administration, State Farm calculates the chances of a West Virginia vehicle striking a deer over the next 12 months at 1 in 39. Michigan remains second on the list, where the likelihood is 1 in 78. The average property damage cost of these incidents was $3,050, up 3.4 percent from a year ago.

By Vehicle

• SUVs: The number of people killed in SUV rollover crashes fell 2.0 percent from 2,899 in 2006 to 2,842 in 2007, according to NHTSA. In 2007 SUVs had the highest rollover involvement rate of any vehicle type in fatal crashes—34 percent, contrasted with 28 percent for pickups, 17 percent for vans and 17 percent for passenger cars.
• The Insurance Institute for Highway Safety (IIHS) issued a report in March 2008 that indicates that roof strength in SUVs significantly influences injury risk. The IIHS came to this conclusion by testing the roof strength of SUVs in much the same way that the government requires of automakers and then relating the findings to the real-world death and injury experience of the same vehicles in single-vehicle rollover crashes. The IIHS tested 11 mid-size SUVs that did not have electronic stability control or side curtain airbags, features that might affect injury rates in rollovers. Researchers concluded that if the roofs of all of the SUVs tested had the same strength as the strongest roof in the test, about 212, or almost one-third of the 668 deaths that occurred in these SUVs in 2006, would have been prevented.
• Motorcycles: NHTSA reports that in 2008, 5,290 motorcyclists died in crashes, marking 11th consecutive year of increasing motorcycle deaths and a 2.2 percent increase from 5,174 fatalities in 2007. 2008 fatalities were the highest since NHTSA starting collecting data in 1975. In addition, motorcycle rider fatalities increased to 14 percent of all motor vehicle crash fatalities, compared with 6 percent in 1999. (See Motorcycle Crashes paper.) Between 1999 and 2008, motorcycle fatalities rose 113 percent. In 2006 (latest data available for registration statistics) motorcycles accounted for about 3 percent of all registered motor vehicles and 0.4 percent of vehicle miles traveled. However, per vehicle mile traveled in 2006, motorcyclists were about 35 times more likely than passenger car occupants to die in a crash and eight times more likely to be injured.
• Large Trucks: According to NHTSA, 4,229 people died in crashes involving large trucks in 2008, or 11 percent of all motor vehicle traffic fatalities. Although large trucks amounted to 4 percent of all registered vehicles in 2007 (latest year available for registration statistics), they accounted for 8 percent of all vehicles involved in fatal crashes in 2008. One out of nine traffic fatalities in 2008 resulted from a collision involving a large truck.

SAFETY

• Crashworthiness: Crashworthiness, a term which refers to how well vehicles withstand different types of crashes, varies by category of vehicle as well as by make, model and year. Two groups conduct tests to determine crashworthiness—the Insurance Institute for Highway Safety (IIHS), which is an insurance-funded organization, and the U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA). The IIHS conducts four types of tests on a large variety of vehicles: Low speed crash tests, rear crash protection tests, side impact crash tests and 40-mph frontal crash offset tests. NHTSA conducts two tests that are similar to the IIHS’s frontal crash and side crash tests. NHTSA also publishes rollover safety ratings by make and model year, and tire ratings by brand. The IIHS vehicle ratings can be found on the Internet at http://www.highwaysafety.org; NHTSA test results can be found at http://www.safercar.gov
• Bumpers: In March 2007, the Insurance Institute for Highway Safety (IIHS) released the results of research using new bumper tests. Four new tests assess over- and underride, which occur when vehicle bumpers slide over and under each other because they don’t line up. These collisions produce some of the most costly low-speed crash damage. The new tests can better match the damage that occurs in real-world collisions. The results show that of 17 midsize cars tested, only three withstood the four tests with $1,500 or less in repair costs in each test. Some vehicles had over $4,500 in damage in one test alone, and two cars sustained over $9,000 in total damage. In addition, bumpers failed to protect the headlights, hoods and other expensive parts in all but two of the 68 tests the IIHS conducted.
• The IIHS released bumper test results of 11 luxury cars in August 2007. The worst performer sustained almost $14,000 in damage in the four tests, while the best sustained about $5,000. Only three cars experienced less than $6,000 in damage, while four would cost more than $10,000 to fix after the crashes. The IIHS says that besides the problems of bumper mismatch on these cars, the bars under the bumper covers which are supposed to absorb crash energy are not effective. Another major factor driving the high repair costs is the price of replacement parts. The IIHS says that this is especially true for luxury cars, which are expensive not only to purchase but also to repair.

Lives Saved by Safety Devices

• Airbags: Airbags are designed to inflate in moderate to severe frontal crashes. NHTSA estimates that by 2008, 180 million passenger vehicles were equipped with airbags, including 170 million with dual airbags. NHTSA says that frontal airbags saved 2,540 lives in 2008. From 1987 to 2008, 27,840 lives were saved by the devices. Airbags, combined with seatbelts, are the most effective safety protection available for passenger vehicles. Seatbelts alone reduce the risk of fatal injury to front-seat passenger car occupants by 45 percent. The fatality-reducing effectiveness for air bags is 14 percent when no seatbelt is used and 11 percent when a seatbelt is used in conjunction with air bags. Side airbags that protect the head, chest and abdomen reduce driver deaths by an estimated 37 percent, according to the IIHS.
• Seatbelts: Among passenger vehicle occupants over the age of four, seatbelts saved an estimated 13,250 lives in 2008 and 255,115 lives from 1975 through 2008. Seatbelts are effective in protecting occupants from ejection, one of the most injurious results of a crash, according to NHTSA. In fatal crashes in 2008, 77 percent of passenger vehicle occupants who were totally ejected from the vehicle were killed. Only 1 percent of occupants reported to have been using restraints were total ejected, compared with 30 percent of unrestrained occupants.
• Child Safety Seats: NHTSA says that in 2008 the lives of an estimated 244 children under the age of five were saved by restraints. If all children under the age of five had been placed in child safety seats in 2008, another 79 lives could have been saved. From 1975 through 2008, NHTSA estimates that 8,959 lives were saved by restraints (child safety seats or adult seatbelts).
• Motorcycle Helmets: Helmets saved 1,829 lives in 2008, according to NHTSA, and could have saved an additional 823 if all motorcyclists had worn helmets. Helmets are estimated to be 37 percent effective in preventing fatal injuries to motorcyclists.
• Electronic Stability Control: The National Highway Traffic Safety Administration will require all vehicles for the model year 2012 to have electronic stability control (ESC). ESC was designed to help prevent rollovers and other types of crashes by controlling brakes and engine power. The U.S. Department of Transportation estimates that ESC would save 10,000 lives each year if all vehicles had the system. By 2009 55 percent of all vehicles were required to have ESC.

• Fuel Economy and Small Cars: The President’s 2009 proposal to increase fuel economy and lower greenhouse gas emissions would require automakers to average 35.5 miles per gallon by 2016 instead of by 2020, which is required under current law. An auto manufacturer can achieve this fuel economy average by incorporating the fuel usage of its entire fleet of cars and light trucks. In the past, automakers have complied with lower fuel economy standards by producing smaller cars, which is the fastest and cheapest path, in addition to making autos more fuel-efficient. However, the Insurance Institute for Highway Safety and NHTSA have conducted studies showing that producing more smaller cars leads to increased crash deaths. Recognizing this phenomenon, the federal government revised the way automakers can calculate their average company-wide fuel economy figures, allowing different fuel economy standards for different types of vehicles. Under the new standards, even fuel efficiency improvements in large vehicles such as SUVs could improve the overall company-wide average. (See Vehicle Size and Weight.)
• Vehicle Size and Weight: Small cars generally do not protect people in crashes as well as bigger, heavier models. Extra weight and size enhance occupant protection in collisions, according to the Insurance Institute for Highway Safety (IIHS), which conducted three head-on collision crash tests each involving a micro- or mini-car and a midsize model made by the same manufacturer. The three small cars earned good frontal crashworthiness scores when crashed into barriers at 40 mph. However, when a small car and a midsize car crashed, the risk of injury to the occupants of the smaller vehicle increased. The IIHS says that the fatality rate in 1 to 3 year-old mini-cars in multiple vehicle crashes in 2007 was almost twice as high as the rate in very large cars of the same age. Consumers buy minicars, such as the Honda Fit, Mercedes Smart Fortwo and Toyota Yaris, to conserve gas and save money and in response to environmental concerns.
• In June 2009 the Insurance Institute for Highway Safety released the results of seven low-speed impact tests of micro- and mini-cars. The study found that one fender-bender type impact alone results in damage costing from hundreds to thousands of dollars. Five of the seven cars had poor ratings in the four tests, and one produced a marginal rating. The worst car racked up $9,380 in total damage in the tests, earning a poor rating, while the best performer, which earned an acceptable rating (none earned a good rating) incurred $3,281 in damage.
• Auto Insurance Discounts: According to the Property Casualty Insurers of America, as of early 2009, thirty-one states and the District of Columbia mandate discounts for older motorists, usually over the age of 55. Twelve states mandate discounts for vehicles equipped with anti-theft devices or VIN window etching. Seven require discounts for passive restraints, seatbelts or seatbelt use.
• In general the state mandated discounts apply to the coverages that are most relevant to the discount. For example, older adult discounts would apply to liability coverages and antitheft device discounts would apply to the comprehensive portion of the auto insurance policy. However, the regulations vary by state. For instance in Massachusetts the older adult discount applies to all coverages for drivers over the age of 65.
• Insurers offer discounts to encourage drivers to focus on safety. Some insurers have nationwide discounts in place. State Farm, for example, offers as much as a 15 percent discount for drivers under age 25 who complete a safe driving program. Other companies have programs in selected states. Progressive’s MyRate program is designed to benefit safe, defensive drivers. It offers a discount to drivers in 15 states who use a monitor in their vehicle that tracks mileage and times of the day the vehicle is used, along with driver behaviors such as how quickly the car speeds up and slows down. New customers earn a first-time discount of up to 10 percent of their total auto insurance premium for signing up. When they renew their rate could go down by up to 25 percent. In general, those who would benefit most from the program are low-mileage, defensive drivers who do most of their driving in daytime hours. Drivers who have poor driving habits such as hard braking and accelerating could end up paying a surcharge of up to 9 percent.  At least two other companies are trying out similar programs. 
• At least two insurers offer insurance discounts to owners of “hybrid” cars, which combine a battery-powered engine with a traditional gas engine. One offers a 10 percent discount on all auto insurance coverages, except uninsured motorist and personal injury protection (PIP), basing the discount on the driver rather than on a safety device or safety training. According to the insurer, hybrid owners are less risky drivers than the average driver, based on demographics, driving records, credit data, marital status and driving patterns. The other insurer offers a 10 percent discount (5 percent in California) on all major coverages, including uninsured motorists and PIP.
• Seatbelt Use Laws: Seatbelt use laws are on the books in every state except New Hampshire. However, only 30 states and the District of Columbia have primary enforcement laws. Primary seatbelt laws allow law enforcement officers to stop a car for noncompliance with seatbelt laws (See chart in following section). In the other states, which have secondary enforcement laws, drivers may only be stopped and they and their passengers ticketed, if they have violated other traffic safety laws. In New Hampshire, legislation requiring seatbelt use was rejected by the Senate in May 2007, leaving it the only state in the nation that does not have a law requiring adults to wear seatbelts.
• NHSTA says that states with primary enforcement laws have lower fatality rates. The agency compared the percentage of unrestrained passenger vehicle occupant fatalities and fatality rates between states that have primary seatbelt use laws and states that did not have them for 2005 and 2006. Besides having a smaller percentage of passenger vehicle occupant fatalities that were unrestrained, the fatality rates in primary enforcement states were much lower than for all other states. In primary enforcement states the passenger vehicle occupant fatality rates were 0.97 per 100 million vehicle miles traveled and 10.20 per 100,000 population. This compares to 1.06 and 11.78 (respectively) for all other states.
• Seatbelt use in the United States reached a record high of 84 percent in 2009, compared with 83 percent in 2008, according to NHTSA. States with primary seatbelt laws had an average 88 percent usage rate, 11 points higher than the 77 percent in states with secondary laws. New incentives to increase seatbelt use were included in the Safe, Accountable, Flexible, Efficient Transportation Act of 2005. The Act made $498 million available for distribution over four years to states that enact primary seatbelt laws or reach 85 percent belt use for two years. 

MOTOR VEHICLE DEATHS PER 100,000 PERSONS BY AGE, 2008

MOTOR VEHICLE DEATHS BY ACTIVITY OF PERSON KILLED, 2008

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