Facts ...

According to the Federal Motor Carrier Safety Administration, Office of Research and Analysis, Publication No. FMCSA-RRA-07-017, July 2007 and the Final Report for the Federal Motor Carrier Safety Administration, Federal Highway Administration, December 2006.
  • Over the past 20 years (1986 to 2006) there has been a 23% increase in registered large trucks and a 76% increase in miles traveled by large trucks.
  • Of the 368,000 police reported crashes involving large trucks in 2006, 4,321 resulted in at least one fatality, and 77,000 resulted in at least one non-fatality injury.
  • The estimated cost of police-reported crashes involving trucks with a gross weight rating of 10,000 pounds averaged $91,112 (in 2005 dollars).
  • The average cost for a fatal crash was $3,604,518 (in 2005 dollars) per crash!
  • Brake failure accounted for 29% of accidents!

  • Hundreds of associated factors were collected for vehicle crash. The top 10 factors coded for large trucks and their drivers were:
    • Brake problems
    • Traffic flow interruption (congestion, previous crash)
    • Prescription drug use
    • Traveling too fast for conditions
    • Unfamiliarity with roadway
    • Roadway problems
    • Required to stop before crash (traffic control device, crosswalk)
    • Over-the-counter drug use
    • Inadequate surveillance
    • Fatigue

  • Revenue necessary to pay for accident losses.
    This table shows the dollars of revenue required to pay for different amounts of costs for accidents.
It is necessary for a motor carrier to generate an additional $1,250,000 revenue to pay the cost of a $25,000 accident, assuming an average profit of 2%. The amount of revenue required to pay for losses will vary with the profit margin.
YEARLY ACCIDENT COSTS PROFIT MARGIN
1% 2% 3% 4% 5%
$1,000
5,000
10,000
25,000
50,000
100,000
150,000
200,000 		100,000
500,000
1,000,000
2,500,000
5,000,000
10,000,000
15,000,000
20,000,000 		50,000
250,000
500,000
1,250,000
2,500,000
5,000,000
7,500,000
10,000,000 		33,000
167,000
333,000
833,000
1,667,000
3,333,000
5,000,000
6,666,000 		25,000
125,000
250,000
625,000
1,250,000
2,500,000
3,750,000
5,000,000 		20,000
100,000
200,000
500,000
1,000,000
2,000,000
3,000,000
4,000,000
REVENUE REQUIRED TO COVER LOSSES

Accident costs (direct + indirect) consist of any or all of the following:

Direct Costs:

  • Cargo Damage
  • Vehicle Damage
  • Injury(s) Costs
  • Medical Costs
  • Loss of Revenue
  • Administrative Costs
  • Police Report
  • Possible Effect on Cost of Insurance
  • Possible Effect on Cost of Workmen's Compensation Insurance
  • Towing Costs
  • Storage of Damaged Vehicle

Indirect (Hidden) Costs:

  • Lost Clients/Customers
  • Lost Sales
  • Meetings Missed
  • Salaries Paid to Employees in Accident
  • Lost Time at Work
  • Cost to Hire/Train Replacement Employees
  • Supervisor's Time
  • Loss of Personal Property
  • Replacement Vehicle Rental
  • Damaged Equipment Downtime
  • Accelerated Depreciation of Equipment
  • Accident Reporting
  • Medical Costs Paid by Company
  • Poor Public Relations/Publicity
  • Increased Public Relations Costs
  • Government Agency Costs

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