Motor vehicle accidents (MVAs) continue to be a leading concern in the workers’ compensation system, representing the top cause of work-related fatalities and among the most expensive claims, according to a recent report by the National Council on Compensation Insurance (NCCI). Despite improvements in workplace safety over the past two decades, the road remains a hazardous environment for employees.
High Cost and Frequency
Although MVAs account for just 5% of workers’ compensation lost-time claims, they represent 10% of benefit costs. On average, MVA lost-time claims cost more than $100,000 — about 70% higher than the average claim. Over the past two decades, the share of claims exceeding one million dollars due to MVAs has more than tripled. Today, motor vehicle accidents represent roughly one in five dollars of benefit costs on large claims.
MVAs are also the leading cause of work-related fatalities, responsible for four out of every ten worker deaths. This figure is double that of the next highest cause of workplace fatalities.
Contributing Factors
Several elements contribute to the disproportionate cost of MVA claims:
- Crash physics: High-speed and heavy-vehicle collisions result in severe accidents with significant damage.
- Complex injuries: MVAs are more than twice as likely to cause multiple injuries compared to other workplace accidents, and injuries to the head or lower extremities are often more costly to treat.
- Multiple claimants: Crashes are ten times more likely to injure multiple coworkers than the average workplace incident.
- Third-party involvement: Nearly half of all MVA lost-time claims involve another vehicle. About one in four of these claims result in subrogation recovery, but costs remain 70% higher than average.
Trends and Risks
While overall workers’ compensation lost-time claim frequency has steadily declined since 2012, MVA frequency has remained flat, aside from a drop during the pandemic. Early post-pandemic data suggest this flat trend could continue. NCCI highlighted distracted driving, particularly cell phone use, as a significant factor, noting that one in three crashes involves phone use within a minute of the accident.
The increase in inexperienced drivers and greater overall mileage on the roads has also played a role in sustaining MVA frequency.
Safety Developments
The trucking industry has experienced several consecutive declines in MVA frequency, with safety technology and regulations playing a role. Measures include electronic stability control in new truck tractors, mandatory electronic logging devices to curb fatigue, and the Federal Motor Carrier Safety Administration’s Drug and Alcohol Clearinghouse.
Employers are also adopting proactive strategies such as telematics, GPS tracking, and dash cameras integrated with AI to monitor driver behavior and encourage safer practices.
Emerging technologies, including autonomous trucks, may further impact safety in the future. While broad adoption remains distant, NCCI noted that current measures in trucking demonstrate that progress is possible.
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