13 ms·
Need to account for the fact that not all Americans drive. To get to the $1,035 per person they have taken the total cost ($340B) and divided it by the populat
by Closi 3y ago
Need to account for the fact that not all Americans drive.
To get to the $1,035 per person they have taken the total cost ($340B) and divided it by the population, but if you divide it by the number of drivers (i.e. people actively insured) then you would get a bit closer to $2600.
I assume that some $2600 policies have multiple drivers too.
- xmprt 3y agoBut that doesn't account for deductibles.
- anonymouskimmer 3y agoI'm not sure reading the article, but I think this $2600 may not account for deductibles (or self-pay): > The study calculated the total societal cost of car crashes, borne by every American, not just those directly involved in car crashes. Parsing this, and making the assumption, the $340 billion is the distributed cost ("borne by every American"), while the deductibles would be singular costs (borne by "those directly involved in car crashes"). I'd need to see the actually study though.
- Closi 3y agoWe would also have to account for profit (let’s say 3%) and all overheads (let’s say 15%). Average car insurance charge is c$2000 so we can say $380 of that is probably overhead and profit. That leaves $1,640 left. $340B then divided by the number insured (230m) would be c$1,500 so with these very rough numbers there isn’t too much of a gap.