According to the Centers for Disease Control and Prevention, in 2005 fatal car crashes in North Carolina resulted in costs of $1.5 billion. According to that study, which was discussed in an earlier blog post, medical-related costs constituted $18 million of the total loss while work-loss costs were an astounding $1.48 billion. This statistic shows that in addition to the emotional impact of the loss of a loved one, a fatal accident can severely affect survivors financially.
According to the CDC report, work loss costs are calculated by adding salary and fringe benefits that a deceased person would have earned had he or she lived their expected life span as well as the value of household work the average person of the same age and sex performs for life. This calculation shows the work loss due to the death of a young person is greater than work loss for an older person.