Vehicle crash costs incurred by businesses from insurance premiums, repairs, lost productivity, and other expenses amounted to $57.9 billion in 2018 as compared to $47.4 billion in 2013, according to a new report.
Car insurance premiums have increased 23% in the past eight years, and the average vehicle accident repair cost in 2018 was $3,053, according to the 2019 Motus Driver Safety Report.
The report examines the expenses associated with vehicle incidents and the impact on commercial fleets and employers with mobile-enabled workers.
Since 2013, the average car insurance premium has increased every year and the trend appears to be continuing. Moreover, car insurance accounts for 19% of all driving cost components.
Repairs are becoming more expensive. The average front-end collision repair costs ballooned from $1,652 for a 2010 Chevy Malibu to $3,627 for a 2018 Chevy Malibu.
Moreover, components of the latest advanced safety features are commonly found in the areas most likely to be impacted by an accident — the front and rear bumper areas. New technology has led to more expensive materials and a larger number of parts per repair.
In fact, parts now comprise 43% of total accident repair costs for vehicle models released after 2017.
The report suggests that driver safety programs that reduce accidents can help save lives, but also money. Safe drivers have a quantifiable positive impact on the bottom line, notes a Motus research analyst.
The company estimates that its individualized driver safety training reduces collision rates by an average of 35%.
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