Societal Costs of Traffic Crashes and Crime in Michigan: 2023 Update

Abstract

Comparable and up-to-date cost data for traffic crashes and crime contribute to informed decision making about allocation of resources and are a critical component of improving safety on our roadways and in our neighborhoods. The goal for this study is to provide the most current cost information about the magnitude of burden imposed by traffic crashes and crime in Michigan. This report represents the seventh in the series of Societal Costs of Traffic Crashes and Crime in Michigan. Michigan-specific monetary and nonmonetary quality of life costs for victims of index crimes (murder, rape, robbery, aggravated assault, burglary, larceny, and motor vehicle theft) and traffic crashes were estimated by experts in the field of economics of traffic crashes and crimes. Monetary costs include costs of medical care, mental health, work loss, public services, adjudication and sanctioning, congestion and environmental factors, and property damage and loss. Quality of life costs are based on the current National Highway Traffic Safety Administration value of statistical life and adjusted for consistency between crimes and crashes. The unit costs for crimes and crashes were computed in a comparable manner. These unit costs were applied to 2021 Michigan traffic crash and index crime incidence data to estimate dollar losses from crashes and crimes to the state and for each county within the state. Costs were also estimated for the following crash types: alcohol-involved crashes, drug-involved crashes, crash-involved unrestrained occupants of passenger vehicles, young driver (<21 years) crashes, older driver (65 years and older) crashes, crashes involving medium/large trucks (defined as a gross vehicle weight exceeding 10,000 lbs.), motorcycle-involved crashes, bicycle-involved crashes, and pedestrian-involved crashes. Findings indicate that in 2021, index crimes in Michigan resulted in $2.8 billion in monetary costs and $9.7 billion in quality of life costs, resulting in $12.5 billion in total costs. Costs for traffic crashes were estimated to be $6.6 billion in monetary costs and $23.7 billion in quality of life costs, resulting in $30.4 billion in total costs. Consistent with previous studies, the costs for traffic crashes more than doubles the costs for index crimes in Michigan.