The Real Costs of Distracted Driving and How to Prevent It

Distracted driving causes thousands of deaths, hundreds of thousands of injuries and billions of dollars in economic losses every year. A moment of distraction can lead to a serious crash, and the financial consequences extend far beyond the immediate damage. This guide explains what distracted driving looks like, who's most at risk, how it affects insurance and what drivers can do to stay focused behind the wheel.

The National Highway Traffic Safety Administration (NHTSA) reports that sending or reading a text at 55 mph is like driving the length of a football field with your eyes closed. Recent federal data show distraction is recorded in about 8% of all traffic deaths and 13% of police-reported crashes. About nine people die in crashes involving a reported distracted driver every day in the United States.

Distracted driving comes with steep financial consequences. NHTSA's most recent cost analysis found distracted-driving crashes created about $98 billion in economic costs in a single year and roughly $395 billion in total societal harm when quality-of-life losses are included. At the individual level, a distraction-related ticket or at-fault crash can raise car insurance premiums for several years, adding hundreds or thousands of dollars to the cost of driving.

Distracted driving remains a major contributor to crashes, injuries and deaths nationwide. In 2023, distraction was a factor in 13% of all police-reported crashes, and about nine people die every day in crashes involving a reported distracted driver. These figures likely understate the true impact because distraction is harder to document than speeding or alcohol impairment.

Telematics studies show distracted driving fell 8.6% in 2024, preventing an estimated 105,000 crashes and avoiding $4.2 billion in damages. Stronger laws, enforcement, technology changes and public awareness campaigns appear to be reducing phone-related distraction risk.

Crashes are the leading cause of death for U.S. teens, and distraction plays a role in many of these crashes. Teen drivers have higher crash risk because they have less experience recognizing hazards, managing multiple tasks and recovering from errors.

"Teen brains aren't fully developed, so their decision-making isn't at peak performance yet," says Joel Feldman, founder of EndDistractedDriving.org. "When you combine that with inexperience, the ability to multitask while driving is really low. Add in a few peers in the car — that's one of the biggest risk factors, and sadly you often end up with a wreck."

Teen drivers should:

• Avoid all phone use while driving, even hands-free calls
• Limit passengers, especially in the first year of licensure
• Practice driving in challenging conditions with a supervising adult
• Understand crashes can happen quickly when attention shifts

Age-Group Patterns

Teen drivers (ages 15 to 20) have the highest distraction rates in fatal crashes, but drivers ages 25 to 34 make up the largest share of distracted drivers overall due to their numbers on the road and driving patterns. Cellphone use among distracted drivers drops sharply with age. Drivers over 65 are far less likely to use phones during crashes.

For Parents and Teen Drivers

Parents can reduce teen distraction risks through clear rules and consistent modeling of safe behavior:

Set clear phone rules: Establish a no-phone policy for all driving, including hands-free calls during the first year of independent driving. Make violations nonnegotiable.

Use Graduated Driver Licensing (GDL) as a baseline: Follow your state's GDL restrictions on nighttime driving and passengers. Set stricter household rules during the first year of licensure.

Add telematics or monitoring tools: Most insurers offer programs that track driving behavior and lower insurance costs by 10% to 30%. Parents can review reports showing speeding, hard braking and nighttime trips.

Limit passengers: Multiple teen passengers increase crash risk substantially. Restrict passenger numbers, especially during the first six to 12 months of independent driving.

Model phone-free driving: Teens learn from watching their parents. Put your phone away, use Do Not Disturb features and pull over if you need to make a call or send a message.

Teens who avoid violations can qualify for good student discounts to offset the higher premiums young drivers pay. When adding a teen to a policy, review how much car insurance coverage you need for adequate protection as your family's driving risk profile changes.

Learn more about teen driver statistics and insurance costs.

Distracted driving can affect car insurance the same way other unsafe driving behaviors do — by increasing risk profiles and, in some cases, triggering policy changes or non-renewal. A clean driving record is one of the most effective ways to keep premiums low, while a distraction-related ticket or at-fault crash can cause rates to rise for several years.

"If an insurance carrier can prove you were distracted when the accident happened, and you were the cause, then that's a factor in determining your premium," says Justin Klepado, claims service manager at CSAA Insurance Group. "We'll assess the cost to fix the damage, and that will be considered when renewing your policy."

Does Distracted Driving Increase Car Insurance?

Multiple factors determine auto insurance rates, including age, vehicle, location and driving record. A distraction-related violation or crash adds to that risk profile and can lead to higher premiums, especially when combined with speeding, DUI or other moving violations.

Analyses of rate filings show full coverage premiums increase between about 9% and 51% after a texting-while-driving or similar distracted-driving violation, with most averages falling in the 27% to 32% range, roughly $600 per year in additional costs for many drivers. Some major insurers increase rates by 15% to 20% for a first offense, while others raise premiums by 35% to 50% or more. These surcharges stay on a driver's record for three to five years.

The exact impact depends on your insurer, state rules and driving history. Some states, including Idaho, Massachusetts, North Carolina and Washington, limit or prohibit using texting-only tickets when calculating insurance rates, while others give carriers broader discretion. In any state, shopping around and comparing quotes after a violation can help drivers find more affordable options.

Drivers struggling with premium increases after violations may qualify for low-income car insurance programs in some states.

Can Distracted Driving Lead to Cancellation or SR-22 Requirements?

Insurers can cancel policies after serious or repeated violations, although many won't take that step after a single minor crash. But if a driver is found at fault in a crash involving texting, phone use or other serious distraction, especially when combined with DUI or reckless driving, insurance carriers may decide not to renew the policy or may require the driver to get an SR-22 certificate to keep their license.

If an insurer doesn't renew a policy after a distraction-related crash, learn about switching car insurance after an accident to find new coverage.

Teen drivers are especially vulnerable. Teen premiums commonly run 50% to 100% higher than adult rates, and an 18-year-old with a texting-while-driving violation can pay several hundred dollars more per month for full coverage. Because teens are already in a high-risk category, insurers may be more likely to drop coverage after serious distraction-related crashes or multiple violations.

Do Distracted Driving Citations Go on Your DMV Record?

Every state sets its own rules for what appears on driving records and how points are assigned. Some states use a point system for moving violations, while others simply record each offense. In both systems, distraction-related crashes and repeated citations can quickly drive up insurance costs.

In many states, a first minor distracted-driving offense may not add points or appear prominently on records, but subsequent offenses, at-fault crashes or serious charges can add points, trigger license consequences and lead to substantial premium increases. In extreme cases, repeated violations can lead to license suspension and requirements to maintain insurance just to keep driving privileges. Learn more about consequences of driving without required insurance.

Drivers should review their state's distracted driving laws and DMV rules or speak with insurers to understand how a citation might affect coverage.

Broader Economic Impact

Beyond individual insurance costs, distracted-driving crashes impose tens of billions of dollars annually in economic costs: medical care, lost productivity, legal expenses, property damage and congestion. When quality-of-life losses are included, societal harm reaches hundreds of billions of dollars per year.

Lawmakers, insurers and employers continue to focus on distraction prevention even when annual fatality counts fluctuate because of these costs.

People compare distracted driving with drunk driving to understand the relative risks. Both behaviors impair the ability to drive safely, but they create different patterns of risk and harm.

Dr. David Strayer, professor of cognition and neural science at the University of Utah, has studied both impairments extensively. His research shows phone conversations, even hands-free, can impair drivers as much as having a blood alcohol content at the legal limit of 0.08%.

"People think the issue with cell phones is that your hands aren't on the wheel. That's not the issue," says Chrissy Ebel, outreach manager for EndDD.org. "The issue is where your mind is. When you're on the phone, you're mentally in two places at once. You can be looking at the road and not see what's right in front of you."

This comparison highlights cognitive impairment, but alcohol-impaired driving still causes more deaths overall. Distraction is more widespread in everyday driving but harder to document in crash reports. Blood alcohol levels provide clear evidence, while distraction often goes unrecorded. Many crashes involving distraction get classified as "driver error" instead.

CDC and safety research show both alcohol and distraction reduce reaction time and attention, but distraction is normalized because phone use and multitasking are common outside the car. While drunk driving is deadlier per crash, reducing distraction could prevent many everyday crashes that add up to substantial human and economic costs.

Legal rules shape how distracted driving accident statistics show up in official records and what penalties drivers incur. As of mid-2025, laws have grown stronger and more comprehensive across the country.

National Overview

Forty-nine states and Washington, D.C., ban texting while driving for all drivers. Montana is the only state without a statewide texting ban, although several Montana cities, including Billings, Bozeman and Missoula, enforce local bans.

About 30 states plus Washington, D.C., have full hands-free laws that prohibit handheld cellphone use while driving, up from the high 20s just a few years earlier. Many states restrict phone use for young or novice drivers and apply higher penalties in school zones and active work zones.

Penalty Examples

Penalties differ by state and violation:

• California: Base fines start at $20 for a first handheld violation and $50 for repeat offenses. Total costs with fees reach about $160 for first violations and $285 for later ones.
• Alabama: A June 2024 hands-free law allows secondary enforcement. Fines range from $50 for a first offense to $150 for a third offense, plus one to three license points. Courts dismiss first offenses if drivers buy hands-free devices.
• Illinois and Florida: Both states increase fines and add license penalties when distracted driving causes injuries or happens in school or construction zones.
• New Jersey's "Maggie's Law": Prosecutors can pursue vehicular homicide charges against drivers who kill someone while knowingly driving sleep-deprived. The law treats severe drowsiness the same as alcohol impairment.

State-by-State Laws

Laws differ by state. The interactive map below shows state rules about handheld devices, texting and penalties:

Because state laws change, drivers should check the current state minimum car insurance requirements and distracted driving rules, especially when traveling across state lines.

Is Texting While Driving Illegal in Every State?

Nearly every state bans texting while driving. Forty-nine states and Washington, D.C., prohibit all drivers from texting behind the wheel. Montana remains the only state without a statewide texting ban, though individual Montana cities have enacted local ordinances.

How Do Police Know if You Were Texting?

Law enforcement can observe phone use while drivers are on the road. Officers look for signs such as drivers looking down at their laps, swerving between lanes or delayed reactions at traffic signals.

After a crash, police may request phone records as part of the investigation. Many smartphones track screen activity and app usage with timestamps. If a driver caused a crash, law enforcement may subpoena phone records to determine whether the driver was using a device at the time of the collision. This evidence can be used in traffic citations, insurance claims and civil lawsuits.

Preventing distracted driving starts with recognizing behaviors that take attention away from the road. Telematics studies show distracted driving fell 8.6% in 2024, preventing an estimated 105,000 crashes and avoiding $4.2 billion in damages. Stronger laws, enforcement, technology changes and public awareness campaigns appear to be reducing phone-related distraction risk.

Drivers can lower risk through simple habits and smart use of available technology.

"Even when you have features like adaptive cruise control, lane assist, automatic braking — they're designed as safety supports, not replacements for an attentive driver," warns Pam Fischer, senior director of external engagement at the Governors Highway Safety Association (GHSA). "We're seeing an increase in secondary task engagement when people use these systems. They start to trust the car too much and let their guard down."

Research shows drivers engage in more distracting behaviors when advanced driver assistance systems are active. These systems encourage over-reliance and create a false sense of security. No current production vehicle is fully autonomous. Every car on the road today requires an attentive driver ready to take control at any moment.

Distracted driving creates major liability and cost exposure for employers. Motor vehicle crashes are a leading cause of workplace deaths, and distraction increases both crash frequency and severity.

The Business Case for Distraction Prevention

Research shows texting while driving a commercial vehicle increases the odds of a safety-critical event by about 23 times, and employer crash costs run into the billions annually. Motor vehicle accidents are disproportionately expensive for workers' compensation programs, costing much more per claim than other workplace injuries. With roughly one-third of U.S. jobs involving some driving, employer distracted-driving policies directly affect both workers' comp and liability exposure.

What Employers Can Do

Establish a clear mobile device policy that prohibits phone use while driving for work purposes. The National Safety Council offers a Safe Driving Kit with sample policy language, training materials and implementation guidance.

Provide hands-free devices and encourage proper use, but emphasize hands-free doesn't mean risk-free. Cognitive distraction persists even when drivers use voice controls and speakerphones.

Consider fleet telematics that monitor driving behavior and provide coaching opportunities. Data-driven feedback helps drivers recognize risky patterns and build safer habits.

Lead by example. When managers and executives model phone-free driving, employees follow suit. Make it clear no call, text or email is worth a crash.

Train employees on the risks. Use company meetings, toolbox talks or driver safety sessions to review distracted driving statistics and reinforce company policies.

Employers who invest in distraction prevention see measurable returns through lower crash rates, reduced insurance costs and improved worker safety.

Distracted driving prevention works best when multiple groups coordinate efforts. States, schools, employers and advocacy organizations work to create safer roads.

States and Local Communities

State and local governments run public service announcements, change laws and launch community programs to reduce distraction. NHTSA's "Put the Phone Away or Pay" campaign increases enforcement through high-visibility periods when police target distracted driving violations.

Community hospitals and trauma centers lead educational programs. The Children's Hospital of Philadelphia (CHOP) publishes research and resources on teen driving risks. Hospitals share real crash stories showing what happens when drivers text or talk behind the wheel.

Employers and Fleets

Companies participate in safety initiatives beyond workplace policies. The Network of Employers for Traffic Safety (NETS) connects employers to proven strategies for reducing distracted driving. The NSC coordinates corporate partnerships focused on eliminating phone use behind the wheel.

Schools and Youth Programs

Driver's education programs increasingly include distracted driving modules, and some schools use driving simulators like Distractology to let students experience the effects of distraction in a controlled setting. High schools partner with organizations like Students Against Destructive Decisions (SADD) and local law enforcement to create peer-to-peer campaigns.

Schools, youth groups and community organizations can use MoneyGeek's statistics and this guide as a foundation for presentations or parent nights on distracted driving. Data on teen crash patterns, insurance impacts and proven prevention strategies help parents and teens understand the safety and financial stakes.

Advocacy and Safety Groups

National advocacy organizations lead research, education and policy efforts:

• EndDistractedDriving.org (EndDD): Joel Feldman founded EndDD after his daughter was killed by a distracted driver. EndDD sends speakers to schools and communities and publishes educational materials.
• Impact Teen Drivers: Creates evidence-based programs for high schools, driving schools and parents.
• AAA Foundation for Traffic Safety: Studies distraction and teen driving risks and publishes annual reports on driver behavior.
• National Safety Council (NSC): Runs the "Just Drive" initiative and publishes workplace resources for employers.
• Governors Highway Safety Association (GHSA): Tracks state laws and publishes policy recommendations plus research on distracted driving trends.

Schools, businesses and local communities use these organizations' programs to teach drivers about distraction risks.

These resources provide information, research and tools for drivers, parents, educators and employers:

• CDC Distracted Driving: Overview of distraction types, risks and prevention tips
• NHTSA Distracted Driving Campaign: Federal resources and enforcement information
• AAA Foundation for Traffic Safety: Research on driver behavior and distraction
• GHSA GenerationDistractionFree.org: Parent resources and teen campaigns
• Impact Teen Drivers: Evidence-based programs for high schools and families
• MoneyGeek Teen Driver Statistics: Comprehensive data on teen crash patterns and insurance costs
• NSC Safe Driving Kit: Policy templates, training materials and implementation guides
• Network of Employers for Traffic Safety (NETS): Best practices and corporate partnerships
• FMCSA Distracted Driving Resources: Commercial vehicle regulations and safety guidance
• IIHS Distracted Driving Research: Studies on law effectiveness and crash patterns
• GHSA State Laws: Comprehensive state-by-state law comparison
• MoneyGeek Distracted Driving Statistics: Comprehensive deaths, injuries, costs and insurance impacts
• EndDistractedDriving.org (EndDD): Educational speakers and resources for schools
• Students Against Destructive Decisions (SADD): Peer-to-peer teen programs