NETS Report Highlights the Rising Financial Impact of Motor Vehicle Crashes on Employers
The Network of Employers for Traffic Safety (NETS), with support from State Farm, has released the latest edition of its flagship research report, Costs of Motor Vehicle Crashes to Employers: Latest Available Estimates and Key Findings (2026)™. The updated report provides employers with a detailed examination of the financial consequences associated with motor vehicle crashes and highlights the importance of strengthening workplace and employee road safety programs.
Motor vehicle crashes continue to create significant human, operational, and financial challenges for organizations across industries. While the most serious consequences are often measured in injuries and fatalities, crashes also generate extensive costs that can affect a company’s financial performance, workforce productivity, insurance expenses, vehicle operations, and employee well-being. The new NETS report is designed to help employers better understand these costs and use reliable data to guide investments in traffic safety.
The 2026 edition includes updated estimates of crash-related expenses by industry and geography. It also examines the financial effects of several major crash risk factors, including speeding, distracted driving, alcohol-impaired driving, and the failure to use seat belts. By presenting this information in a business-focused format, the report gives employers a clearer picture of how roadway incidents can affect their organizations both directly and indirectly.
One of the report’s most significant findings is that an average on-the-job motor vehicle crash costs an employer nearly $56,000. This figure demonstrates the substantial financial impact that even a single incident can have on a business. Depending on the severity of the crash, expenses may include medical treatment, workers’ compensation, vehicle repair or replacement, insurance claims, legal costs, lost work time, and reduced productivity.
The financial consequences can be even more extensive when a crash results in serious injury or death. A major incident may affect multiple areas of an organization simultaneously, from employee availability and operational continuity to insurance premiums and legal liabilities. For businesses that operate large fleets or rely heavily on employees who drive as part of their jobs, the cumulative costs can quickly become substantial.
However, the report emphasizes that employer-related crash costs are not limited to incidents that occur while employees are performing work-related duties. Off-the-job crashes involving employees and their dependents can also create significant expenses for employers. These costs may be reflected through employee health benefits, medical claims, paid sick leave, reduced productivity, disability-related expenses, and insurance-related costs.
This broader view of crash costs is important because employees spend a significant amount of time traveling outside of work. An employee injured in a personal vehicle crash may be absent from work, require medical care, or experience a decline in productivity. In addition, family members and dependents involved in crashes can create additional healthcare and benefit-related expenses for employers. As a result, comprehensive road safety programs may provide benefits beyond traditional fleet safety initiatives.
The report also examines some of the most common and preventable behaviors associated with motor vehicle crashes. Speeding remains a major contributor to roadway fatalities and serious injuries. Higher speeds reduce the amount of time drivers have to respond to unexpected hazards and increase the severity of crashes when collisions occur.
Distracted driving represents another significant risk. Mobile phones, electronic devices, in-vehicle technologies, eating, personal grooming, and other activities can divert a driver’s visual, manual, and cognitive attention from the road. Even brief distractions can have serious consequences, particularly in high-speed or congested traffic environments.
Alcohol-impaired driving continues to be a major source of roadway risk. Alcohol can affect judgment, reaction time, coordination, and decision-making, making it more difficult for drivers to respond safely to changing traffic conditions. For employers, alcohol-related crashes can lead to severe financial and legal consequences, particularly when incidents involve company vehicles or occur during work-related activities.
The report also highlights the importance of seat belt use. Seat belts remain one of the most effective safety measures available to vehicle occupants, yet some drivers and passengers continue to travel without using them. Failure to wear a seat belt can significantly increase the risk of serious injury or death in a crash, creating additional human and financial consequences for employers and families.
“Behind every crash statistic is an employee, a family, and a business impacted by an event that may have been preventable,” said Tom Karnowski, Vice President of Environment, Health and Safety at USIC and NETS Board Chair. He explained that the updated report provides organizations with information that can help them understand their risks, determine where safety investments are needed, and improve programs before crashes occur.
The release of the updated report was made possible with support from State Farm, which has been a member of the NETS Board since 2021. The organization has supported research and initiatives focused on improving transportation safety and helping organizations understand the factors that contribute to roadway crashes.
“As a member of the NETS Board of Directors, State Farm is proud to support this research quantifying the costs employers bear due to motor vehicle crashes,” said Liz Pulver, Senior Program Manager, Transportation Safety Research, State Farm and NETS Board Vice-Chair. She added that the findings reinforce State Farm’s long-standing commitment to research and education designed to help make roads safer for drivers, passengers, employees, and communities.
Alongside the updated report, NETS has also introduced an updated Cost of Crashes Calculator. The online tool is designed to help employers estimate the financial impact of motor vehicle crashes within their own organizations. By entering relevant information about crash activity and organizational operations, employers can better understand potential costs and develop a stronger business case for investing in traffic safety.
For many organizations, gaining support for safety investments can be challenging when the benefits are difficult to measure. The calculator is intended to help address that challenge by translating crash risks into financial terms. Employers can use the information to demonstrate how investments in driver training, fleet technology, safety policies, monitoring systems, and other prevention measures may help reduce the long-term costs associated with crashes.
The calculator can also support internal discussions among safety leaders, human resources departments, financial teams, fleet managers, and senior executives. By presenting crash prevention as both a safety priority and a business strategy, organizations may be better positioned to develop long-term programs that reduce risk.
“Employers are essential partners in reducing roadway risk and advancing the Safe System Approach because they can turn safety principles into daily practice,” said Art Kinsman, Chief Strategy Officer of NETS. He noted that although the human cost of crashes is the most serious concern, roadway incidents also create an estimated $62 billion in annual costs for employers through health benefits, sick leave, liability, vehicle damage, and lost productivity.
The Safe System Approach recognizes that people can make mistakes and that transportation systems should be designed to reduce the likelihood that those mistakes result in serious injuries or fatalities. Employers can play an important role in this approach by establishing policies, procedures, training programs, and technologies that encourage safer driving behavior.
Companies can also influence employee behavior through strong organizational policies. Clear rules on speeding, distracted driving, alcohol use, seat belt use, vehicle maintenance, and mobile phone use can help establish a culture of safety. Leadership commitment is particularly important because employees are more likely to follow safety policies when senior management demonstrates that roadway safety is a business priority.
The financial information contained in the NETS report can help organizations evaluate the potential return on investment of such initiatives. Preventing even one serious crash may avoid tens of thousands of dollars in direct and indirect expenses. In larger organizations with significant driving exposure, the potential savings associated with reducing crash frequency and severity can be even greater.
NETS is positioning the updated report, the Cost of Crashes Calculator, and its Strength IN Numbers® Benchmark Program as complementary resources for employers. Together, these tools can help companies understand the financial impact of roadway crashes, compare safety performance, identify areas for improvement, and measure progress over time.
The Strength IN Numbers® Benchmark Program provides organizations with an opportunity to evaluate their fleet safety performance using data and industry benchmarks. When combined with the new crash cost estimates and calculator, employers can develop a more complete understanding of their roadway risk.
The release of the 2026 report comes at a time when organizations are increasingly focused on workplace safety, employee well-being, operational efficiency, and cost control. As companies manage rising expenses and increasing expectations around corporate responsibility, preventing motor vehicle crashes can offer benefits across multiple areas of business performance.
Ultimately, NETS’ latest research reinforces a central message: motor vehicle crash prevention is not only a public safety issue but also a major business concern. Every crash can affect employees, families, customers, company operations, and financial performance. By using data to understand the true cost of crashes, employers can make more informed decisions about safety investments and develop programs that address both on-the-job and off-the-job driving risks.
The updated Costs of Motor Vehicle Crashes to Employers: Latest Available Estimates and Key Findings (2026) report provides employers with the information needed to quantify those risks. Combined with the updated Cost of Crashes Calculator and the Strength IN Numbers® Benchmark Program, the resources give organizations practical tools to measure performance, strengthen safety strategies, and build support for preventive action.
For employers, the business case for road safety is increasingly clear. Investing in safer driving practices can help protect employees and their families while also reducing preventable expenses related to healthcare, vehicle damage, liability, lost productivity, and insurance. As NETS emphasizes, effective crash prevention is both a corporate responsibility and a sound business decision—one that can help organizations create safer workplaces and contribute to safer roads for everyone.
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