When Motor Vehicle Accidents Drive Workers' Compensation Costs: What Employers Need to Know

Motor vehicle accidents (MVAs) make up a small percentage of workers’ compensation claims but can lead to some of the highest costs. According to the National Council on Compensation Insurance (NCCI), motor vehicle claims account for roughly 5% of lost-time claims, yet they are 70% more costly than the average workplace injury.  

As businesses rely more on vehicles for deliveries, field services, and mobile operations, exposure to driving-related injuries remains an area worth monitoring. 

Understanding the Risk: Insights From NCCI 

Recent research from NCCI highlights several factors behind the cost and complexity of MVA-related workers’ compensation claims: 

• Higher severity. Motor vehicle accidents often result in multiple injuries, such as head, leg, or hip trauma, which can extend recovery times and increase costs. 

• Stable or rising frequency. While overall lost-time claim frequency has decreased in recent decades, MVA claim rates have not followed the same downward trend. 

• Complex claim dynamics. A single crash may involve multiple employees or third parties, adding layers of coordination and investigation. 

• Evolving behaviors and exposure. Factors such as distracted driving,

  roadway congestion, and increased travel times continue to influence risk trends.

   

Together, these insights suggest that while MVA-related workers’ comp claims may not occur often, they tend to have a greater financial and operational impact when they do. 

Why It Matters for Employers 

Beyond medical and wage replacement costs, driving-related injuries can have ripple effects on an organization. Productivity disruptions, vehicle downtime, and the need to hire and train replacements can add indirect costs. 

There’s also a human component—how injuries affect teams, morale, and the overall safety culture. That’s why many employers are taking a closer look at their driving policies, training programs, and fleet safety practices.

Managing the Risk: Practical Steps for Employers 

Every organization’s operations and exposures differ, but several strategies can help reduce the likelihood or severity of driving-related claims. 

Strengthen driver qualification and training

Set clear standards for driver selection and regularly review driving records. Formal new driver orientation programs, ongoing education, including defensive driving and refresher training, reinforce safer habits.

Maintain vehicles consistently 

Routine inspections and maintenance help keep vehicles in safe working order. Pay attention to brakes and tires, and buy vehicles with safety technologies like collision-avoidance systems.

Leverage telematics data 

Telematics systems can identify coaching opportunities. Don’t wait for an incident or poor driving patterns to emerge. Safety concerns—such as speeding or harsh braking—should be addressed with a driver as soon as possible.  

Plan routes and manage fatigue 

Fatigue can be a major contributor to driving incidents. Scheduling with rest in mind and planning routes to avoid unnecessary stressors can support safer driving outcomes.

Route planning can help reduce collision exposure by avoiding construction zones, traffic congestion, and dangerous intersections.

Build a strong safety culture 

Effective policies are reinforced through consistent communication and leadership support. Recognizing safe driving behavior and encouraging accountability can help safety become part of everyday operations. 

A proactive approach to loss control can make a meaningful difference in managing driving-related exposures. Regular review of driving incidents and vehicle maintenance can help employers identify patterns and address potential issues before they result in injuries. 

At Acuity, loss control and claims professionals collaborate with businesses to share insights, review fleet safety programs, and offer practical recommendations tailored to their operations. Whether it’s helping refine driver training, improve telematics monitoring practices, or establish return-to-work strategies, the focus is on prevention and partnership.

By combining data-driven analysis with on-site consultation, Acuity aims to help employers strengthen their safety culture and reduce the overall impact of motor vehicle–related claims. 

Moving Forward: Building a Safer Road Ahead 

While it is not possible to eliminate every driving-related risk, awareness and prevention can make a difference. By focusing on training, vehicle maintenance, and open communication, employers can better manage the exposures associated with operating vehicles on the job.

To learn more about how Acuity supports businesses through workers’ compensation and commercial auto coverage, visit Acuity’s workers’ compensation page. 

Source 
Driving Risk Trends: Motor Vehicle Accidents in Workers Compensation.