The Cost of Auto Accidents

Auto fatalities dropped in 2010 below 33,000, less than in any year since 1949. But AAA has just published an alarming report arguing that the cost of auto crashes is $300 billion a year. Since Americans spend only about $900 billion per year (select table 2.5.5 and add lines 54, 57, and 116) buying, operating, and maintaing cars, this makes accidents appear to be a significant portion of the cost of driving.

AAA’s worthwhile goal is to promote auto safety, but the report also feeds anti-auto arguments about the hidden costs of driving. Since auto critics also misuse AAA’s estimates of the cost of driving, it is worth reviewing this new report.

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