The annual economic cost for fatal crashes in the U.S. is estimated to be $417 billion, according to a recently published 2025 Roadmap for Safety report produced by the Advocates for Highway & Auto Safety. 

This includes $130 billion in lost workplace and household productivity, $141 billion in property damage costs, $108 billion in other costs, and $38 billion in present and future medical costs, the report says. 

“When loss of life, pain, and decreased quality of life are added to economic costs, it is estimated to exceed $1.4 trillion,” the report says. 

Each person living in the U.S. essentially pays an annual “crash tax” of nearly $1,268, the report says. 

It adds the total $417 billion cost is based on 2019 data and has only been updated for inflation. While traffic fatalities have started to fall in recent years, there was a sharp increase in deaths following the COVID-19 pandemic in 2020. 

The National Highway Traffic Safety Administration’s (NHTSA) early estimates show a decline in fatalities in nearly all subcategories, including pedestrian-involved, speeding-related crashes, rollover crashes, and crashes involving unbuckled occupants during the first half of 2024, a press release says. 

An NHTSA report released in September estimated 18,720 people died in motor vehicle traffic crashes during the first half of 2024, a 3.2% decrease compared to the same period in 2023. 

The 2025 Roadmap advocates for safer vehicles, road infrastructure, and road users to reduce traffic fatalities. 

Safer vehicles would include mandating technologies such as automatic emergency braking (AEB) and lane departure warning (LDW) along with prevention systems for impaired driving and hot cars. 

“We lauded the U.S. DOT’s issuance of a final rule for AEB and urge them to swiftly issue the other pending final rules for safety technologies and improvements,” the report says. “We also support new requirements for intelligent speed assistance (ISA), driver capability/monitoring systems, upgrades to prevent frontovers and reduce injury from hoods, bumpers and vehicle weight, and others as standard equipment on new vehicles. Tremendous opportunity also exists to improve the safety of commercial motor vehicles (CMVs).” 

NHTSA recently denied a request from OEM groups including the Alliance for Automotive Innovation (Auto Innovators) to reconsider its AEB mandate. 

NHTSA’s new Federal Motor Vehicle Safety Standard, FMVSS 127, will require AEB and pedestrian AEB to come standard by September 2029 on all passenger cars and light trucks weighing up to 10,000 pounds.

By then, AEB must stop and avoid rear-end crashes at up to 62 miles per hour and detect pedestrians in daylight and at night.

In a June 24 letter to Congress, Auto Innovators President and CEO John Bozzella said the speed requirements are “practically impossible with available technology” and would result in more rear-end collisions.

California Gov. Gavin Newsom vetoed a bill that would have required intelligent speed assistance (ISA) in all vehicles in the state starting in 2030. 

If signed, SB961 would have made California the first state to require ISA in vehicles. It is a required technology on vehicles in Europe since July. 

“While I appreciate the intent to improve traffic safety, this bill presents several challenges,” Newsom said in his veto message. “Federal law, as implemented by the National Highway Traffic Safety Administration (NHTSA), already regulates vehicle safety standards, and adding California-specific requirements would create a patchwork of regulations that undermines this longstanding federal framework. NHTSA is also actively evaluating intelligent speed assistance systems, and imposing state-level mandates at this time risks disrupting these ongoing federal assessments.”

The 2025 Roadmap for Safety report also asks for federal and local policies that approach roadway infrastructure design with a focus on reducing fatal crashes, such as policies that include the U.S. Department of Transportation’s Safe System Approach (SSA) and Complete Streets, the report says. 

SSA and Complete Streets focus on measures to enhance crosswalk visibility, medians, pedestrian refuge islands, and protected bike lanes, it says. 

“Reducing speed limits, deterring speeding and infrastructure-based strategies, such as road diets, speed bumps, and rumble strips, further support safer speeds and collision reduction,” the report said. “Since its founding 35 years ago, Advocates has championed the core principles of the SSA and pursued a comprehensive approach. SSA adoption by the U.S. DOT, states and localities, and funding for infrastructure upgrades consistent with the SSA and Complete Streets bring these life-saving solutions closer to widespread implementation with the ultimate goal of protecting all road users.” 

The report says all states need to enact laws that cover occupant protection to create safer road users. This should include laws that protect child passenger safety and teen and young adult novice drivers. It should also include laws against impaired driving and distracted driving, the report says. States and local governments should also use tools such as automated enforcement to curb speeding and red light running. 

“When used appropriately, the withholding of state highway funds for inaction also has proven successful in advancing lifesaving upgrades including minimum 21 drinking age, zero tolerance for alcohol for youth, .08% blood alcohol concentration (BAC) limit and commercial driver licensing,” the report says. “State traffic safety laws focused on curbing the leading crash factors, backed by consistent, clear and fair enforcement, have been shown to deter dangerous driving and save lives.”

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