In 2022, the total number of vehicles produced across the world were 85.4 million, which was an increase of 5.7% over the previous year, according to the European Automobile Manufacturers' Association, with the countries that produce the most cars in the world playing a major part. However, it is also important to remember these numbers are much lower than global production pre-pandemic, with China one of the only major car producing countries to produce more cars in 2022 than it did back in 2019.
Second on the list is U.S., where the number of cars per capita is much higher than even China and apart from a few smaller countries, absolutely dominates the list, which is why the U.S. states with the best drivers are very important, since the number of people driving cars is significantly high. The reason the U.S. car industry is so much more dominant is because of intensive lobbying which has led to U.S. cities being built in a manner to accommodate cars instead of public transportation or sidewalks, which allows car companies to continue to grow, which is why many of the biggest car companies by revenue are located in the U.S. including the most valuable car company in the world in Tesla, Inc. (NASDAQ:TSLA), currently valued at nearly $850 billion and increasing by nearly 150% YTD. Interestingly, over 87% of Americans continue to use vehicles for their normal trips which just signifies the importance America places on cars.
Initially, even though cars could only run at a fraction of the speed that they can manage now, driving a vehicle was a very dangerous task because of the lack of safety features available. After all, the seatbelt, perhaps the most important car safety invention in history, and which has saved millions of lives over decades, was only mandated in the 1970s, well over 50 years after car use had become popular. While airbags, a more recent innovation, were invented in the 1950s, they only became mandatory in 1998 after the Intermodal Surface Transportation Efficiency Act of 1991 went into effect, and is now considered an important safety feature in cars across the world, and have allowed states with the best drivers to continuously improve safety. Nowadays, many advanced safety features have been introduced, including intelligence speed assistance, driver drowsiness and attention warning systems, event data recorders, parking assistance and many more, all of which are intended to improve the driving experience while simultaneously increasing safety. Self-driving cars, another recent innovation, are expected to further improve safety but have run into hiccups with 419 crashed recorded of such cars, resulting in at least 18 deaths.
Even though a lot of improvements have been made, which is one of the reasons why the motor-vehicle death rate has fallen 92% from 18.65 deaths per 100 million miles driven in 1920 to 1.5 deaths per 100 million miles driven in 2021, many companies are still working on enhancing even more safety features. In May 2023, QUALCOMM Incorporated (NASDAQ:QCOM) purchased Autotalk, a vehicle chipmaker with the purchase price expected to be between $350 million to $400 million, with Autotalk's chips improving road safety as they allow vehicles to interact with each other, showcasing how innovative vehicle safety may present a great investment opportunity.
Of course, you can't talk about car safety, regardless of best and worst drivers by state without discussing car insurance, which is mandatory in 48 states out of 50, with the only exceptions being West Virginia and New Hampshire, though surprisingly the latter still features among the states with the best drivers. The car insurance industry is worth $745 billion and is expected to continue to grow at a CAGR of 4% till 2025. Some of the biggest insurance companies in the world are also among the biggest automobile insurance companies including State Farm, The Progressive Corporation (NYSE:PGR), Geico and The Allstate Corporation (NYSE:ALL). Despite operating in a lucrative industry, the automobile sector is actually at a crossroads as the industry is undergoing some major changes. According to EY "Evolving mobility trends, vehicle technologies and customer expectations will alter the dynamics of the global auto insurance market, forcing legacy carriers to adapt quickly or lose relevance..... sales will outstrip sales of vehicles with internal combustion engines (ICEs), reducing the share of ICE vehicle premiums in the PL market by 20%. As the EV ecosystem matures, economies of scale will drive down EV repair and replacement costs, driving EV premiums below those of ICE vehicles and reducing the size of the overall market by about 7%. Level 3 and 4 AVs, which can drive themselves under limited conditions, will be commercialized, boosting automobile safety and reducing accident rates by 2% and personal auto loss ratios and Direct Premiums Written (DPWs) by 9%. The growing popularity of ridesharing, e-bikes and other shared- and micro-mobility platforms will shrink PL premiums another 8%, while commercial line (CL) premiums rise 18%."
All of the above factors will have a heavy impact not just on automobile insurance carriers' revenue but also their margins and cost cutting or an increase in price will be required to stem losses. Continuing this belief is The Allstate Corporation (NYSE:ALL) which mentioned in its Q1 2023 earnings call "We will continue to pursue rate increases in 2023 to restore auto insurance margins. Reducing operating expenses is core to Transformative Growth. We have also temporarily reduced advertising to reflect a lower appetite for new business. We implemented more restrictive underwriting actions on new business in locations and risk segments where we have not yet achieved adequate prices for the risk. As we move through 2023, it is likely that some of these restrictions will be removed where there are profitable growth opportunities."
Methodology
Determining the states with the best drivers led us to using three criteria; fatalities from accidents as a result of drunk driving per 100,000 people, fatalities from accidents as a result of distracted driver per 100,000 people, and fatalities from accidents per capita, with the data being sources from Forbes and the Insurance Institute for Highway Safety. We used inverse rankings for all criteria to figure out the states which could teach the worst drivers by state a lesson in driving. While technically D.C. isn't one of the 50 states, since statistics are published separately for it and doesn't fall in any of the other states, we have considered it in our rankings as well.
Drunk driver deaths per 100,000: 12.23
Distracted driver deaths per 100,000: 0.72
Accident fatalities per capita: 16.5
According to the South Dakota Department of Public Safety, car crashes in the state in 2022 fell when compared to the previous year, one of the only states able to boast this achievement.
Drunk driver deaths per 100,000: 10.01
Distracted driver deaths per 100,000: 0.92
Accident fatalities per capita: 11.1
Maine experiences around 33,000 crashes every single year resulting in over 150 deaths, and has incorporated a Strategic Highway Safety Plan that aims to improve on these statistics.
Drunk driver deaths per 100,000: 8.29
Distracted driver deaths per 100,000: 0.99
Accident fatalities per capita: 11.3
A study by Ensurify claimed that Michigan had the best drivers among all the state; while it doesn't do quite as well in our list, it still does pretty well, especially in terms of low levels of drunk driving fatalities.
Drunk driver deaths per 100,000: 9.62
Distracted driver deaths per 100,000: 0.84
Accident fatalities per capita: 11.3
Even though Nebraska is relatively safe for drivers, treacherous conditions in winter can make it difficult for drivers to navigate, and slowing down can end up saving a lot more additional lives.
Drunk driver deaths per 100,000: 7.99
Distracted driver deaths per 100,000: 2.23
Accident fatalities per capita: 6.5
Hawaii is home to well-paved roads while well signed roads simply add to the ease of driving within the state.
Drunk driver deaths per 100,000: 9.38
Distracted driver deaths per 100,000: 0.85
Accident fatalities per capita: 10.5
Wisconsin's "Move Over Law" is one of the initiatives taken by the state to reduce traffic accidents, with the Wisconsin Department of Transportation paying particular attention to the rise in deadly crashes in the state.
Drunk driver deaths per 100,000: 9.68
Distracted driver deaths per 100,000: 0.68
Accident fatalities per capita: 11.5
Despite some of the worst traffic laws in the state, including the fact that only the driver and front seat passenger is required to have a seatbelt, Ohio is still among the states with the best drivers.
Drunk driver deaths per 100,000: 6.87
Distracted driver deaths per 100,000: 1.87
Accident fatalities per capita: 8.7
While still better than most states, Washington still reached a two-decade high in terms of road deaths in 2021, and initial data for 2022 showed that the trend was continuing into the year, which means a lot more needs to be done by the state to maintain its presence in our list.
Drunk driver deaths per 100,000: 8.19
Distracted driver deaths per 100,000: 0.94
Accident fatalities per capita: 9.1
Alaska is one of the most stunning states in the country, and additionally, is also among the states with the best drivers, mainly because of excellent road infrastructure, ensuring maintenance of roads with the majority of highways being paved.
Drunk driver deaths per 100,000: 7.06
Distracted driver deaths per 100,000: 0.82
Accident fatalities per capita: 13.5
While Delaware is pretty safe for car drivers, it still ranks among the most dangerous states for cyclists, while the Arrive Alive DE campaign aims to improve further safety for drivers in the state.
Drunk driver deaths per 100,000: 9
Distracted driver deaths per 100,000: 0.76
Accident fatalities per capita: 11.1
Taking note of accidents involving pedestrians, Iowa is working hard to ensure more safety among drivers including funding various cities for pedestrian safety, education and enforcement.
Drunk driver deaths per 100,000: 9.38
Distracted driver deaths per 100,000: 0.45
Accident fatalities per capita: 12.2
Even though Nevada saw an increased number of crashes in 2022, but despite the increase, Nevada is still among the states with the best drivers.
Drunk driver deaths per 100,000: 6.56
Distracted driver deaths per 100,000: 0.85
Accident fatalities per capita: 11.4
While Vermont has a really good track record on accidents and deaths, it is important to remember that winters in the state can wreak havoc on even the best drivers in the world.
Drunk driver deaths per 100,000: 7.43
Distracted driver deaths per 100,000: 0.89
Accident fatalities per capita: 9.1
Maryland has continued to make inroads into safety, which is why it has made it to our list. Stepping up traffic enforcement is one of the methods being considered by the state to continue making gains in driving safety.
Drunk driver deaths per 100,000: 5.17
Distracted driver deaths per 100,000: 0.79
Accident fatalities per capita: 9.8
Utah is the 11th least densely populated state, which means less traffic, which in turn leads to less accidents.
Drunk driver deaths per 100,000: 7.35
Distracted driver deaths per 100,000: 0.68
Accident fatalities per capita: 9.5
While Pennsylvania has many potholes and cities with poor road infrastructure, it's still easily among the states with the best drivers.
Drunk driver deaths per 100,000: 8.12
Distracted driver deaths per 100,000: 0.43
Accident fatalities per capita: 10.9
Even though California is home to some of the most highly populated cities in the country, it is still quite safe to drive in, as evidenced by statistics. While the risk of accidents is higher because of the overall traffic and population, when adjusted per capita, you are much safer driving in California than in most other stats.
Drunk driver deaths per 100,000: 9.15
Distracted driver deaths per 100,000: 0.37
Accident fatalities per capita: 8.2
Anecdotal evidence from Reddit suggests that there is a major difference between Eastern and Western Connecticut, with the latter considered to be much better in terms of drivers.
Drunk driver deaths per 100,000: 5.07
Distracted driver deaths per 100,000: 0.88
Accident fatalities per capita: 5.8
While New York City drivers are considered to be really aggressive, that is mainly because of the high concentration of traffic in the city, with other cities in New York faring much better.
Drunk driver deaths per 100,000: 6.69
Distracted driver deaths per 100,000: 0.61
Accident fatalities per capita: 8.5
New Hampshire may not have mandatory insurance, but it is still among the states with the best drivers, ranking well in all of our metrics.
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Disclosure: None. 25 states with the best drivers is originally published on Insider Monkey.
