A new crash-impact study from Vaziri Law LLP finds that motor vehicle injuries create a massive and often underappreciated economic drain, particularly in California, where the financial consequences ripple through households, workplaces, and the healthcare system. Nationally, the study reports that in 2023, the United States recorded 6,138,359 reported car crashes, causing 40,901 deaths and 2,442,581 injuries. That is one life lost every 13 minutes and five people injured every minute.
But the study’s focus is not only on how often crashes occur, but it is on what crashes cost: in medical bills, lost wages, reduced productivity, insurance hikes, and long-term disability.
The National Price Tag: $513.8 Billion in One Year
According to the study, doctors treated 5.1 million motor vehicle accident injuries in 2023 at a total cost of $513.8 billion. That estimate includes direct medical expenses, property damage, productivity and wage losses, and administrative costs. The study notes that injury costs vary dramatically depending on severity, ranging from about $7,400 for mild injuries to as high as $167,000 for serious injuries.
The report further explains that while a single traffic death is often estimated at $2 million, the true cost of fatal crashes, when injuries, property damage, and broader economic impacts are included, may approach $11.5 million per death. That gap illustrates why crash costs can’t be understood through fatalities alone. Injuries, especially severe injuries, are where costs accumulate fastest.
California Spotlight: Serious Injuries Create the Largest Burden
To illustrate the financial consequences at the state level, the study includes California-specific injury cost modeling for 2024 and 2025. In 2024, California recorded 235,561 injuries. Using severity-based cost estimates, the study calculates approximately $6.36 billion in mild injury costs, $10.36 billion in moderate injury costs, and $39.35 billion in serious injury costs.
In 2025, California recorded 194,167 injuries. Even with fewer injuries than in 2024, the economic toll remained immense: $5.24 billion in mild injury costs, $8.54 billion in moderate injury costs, and $32.43 billion in serious injury costs.
Across both years, the pattern is consistent: serious injuries represent the largest share of the financial burden. These injuries often require surgery, hospital stays, long rehabilitation periods, and long-term support services. They also produce the greatest productivity loss, missed work, job displacement, and in some cases, permanent impairment.
The study includes an important methodological note: because severity-level breakdowns were not available in the California dataset, a proportional severity distribution was applied uniformly across 2024 and 2025 to generate statewide cost estimates.
Why These Costs Hit Families So Hard
The study contextualizes these costs using income benchmarks. The national median household income is approximately $80,610, while California’s median household income is higher at $95,521. Even with higher earnings, crash injuries can overwhelm a family budget. The study points out that a single serious injury at an average cost of $167,000 equals nearly 1.75 times the annual income of a typical California household. A moderate injury at around $44,000 equals nearly half of a household’s yearly earnings.
In real terms, that can mean depleted savings, medical debt, reduced work hours, and long-term instability—especially when injuries reduce mobility, disrupt transportation, or limit a person’s ability to return to the same job.
Insurance Hikes Add a Second Financial Shock
The study also notes that crash costs don’t stop at medical bills. Car insurance premiums often rise substantially after an at-fault crash. The report estimates drivers may see premiums increase 40–50%, averaging about $767 more per year. Even when the fault is disputed, some insurers may still raise premiums based on the fact of collision involvement, treating it as a future risk indicator.
California’s Economy Makes This a National Issue
Because California represents roughly 14.5% of the U.S. economy, the study argues that workforce disruptions there matter nationally. Crash-related injuries lead to missed workdays and reduced productivity across sectors such as logistics, agriculture, healthcare, hospitality, and education. Employers also face replacement labor costs, overtime, and workflow disruptions, economic ripples that extend beyond the injured person’s household.
The study concludes that while fatal crashes attract the most attention, nonfatal injuries create the largest cumulative economic burden, quietly shaping healthcare budgets and household finances year after year. Reducing crashes requires focusing on the behaviors most associated with fatal outcomes, alcohol impairment, speeding, and distraction, but also recognizing that injury prevention is an economic strategy, not only a safety one.
