Analysis of 

Benefits and Costs 

of 

Lane Departure Warning Systems 

for the Trucking Industry 

February 2009

FOREWORD 

The goal of the Federal Motor Carrier Safety Administration (FMCSA) is to reduce the number 

and severity of commercial motor vehicle (CMV) crashes. Over the last several years, FMCSA 

has collaborated with the trucking industry to test, evaluate, and encourage the deployment of 

effective onboard safety systems CMVs to enhance the safety of all roadway users. 

The purpose of this document is to provide the economic benefits, expected costs, and industry 

return on investment for lane departure warning systems. The verification of the costs and 

benefits of safety systems is critical for facilitating voluntary acceptance of these systems by the 

motor carrier industry. To ensure deployment, systems must be cost-effective investments that 

meet user needs. Confidence in onboard safety systems’ ability to reduce commercial-motorvehicle-involved fatalities and injuries is a necessary precondition for acceptance and adoption of 

these systems. 

The benefit-cost analysis presented in this document covers financial metrics such as return on 

investment and payback periods for the end-users of the onboard safety systems—commercial 

motor carriers. This document intends to augment, rather than supersede, previous analyses that 

have focused on onboard safety systems. 

The development of this analysis required the solicitation and collection of data sets from 

multiple industry resources. This information collection is covered by the Office of Management 

and Budget (OMB) and Paperwork Reduction Act exemption for ITS-related surveys, 

questionnaires, and interviews defined in Section 5305, Title V, Subtitle C, paragraph (i) (2) of 

the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users of 

2005, which states that “Any survey, questionnaire, or interview that the Secretary considers 

necessary to carry out the evaluation of any test or program assessment activity under this 

subchapter shall not be subject to chapter 35 of title 44.” 

NOTICE 

This document is disseminated under the sponsorship of the United States Department of 

Transportation in the interest of information exchange. The United States Government assumes 

no liability for its contents or use thereof. 

This report does not constitute a standard, specification, or regulation. 

The United States Government does not endorse products or manufacturers. Trade or 

manufacturers’ names appear herein only because they are considered essential to the objective 

of this document. 

Technical Report Documentation Page 

1. Report No. 

FMCSA-RRT-09-022 

2. Government Accession No. 3. Recipient’s Catalog No. 

5. Report Date 

February 2009

4. Title and Subtitle 

Analysis of Benefits and Costs of Lane Departure Warning Systems for 

the Trucking Industry 

6. Performing Organization Code 

7. Author(s) 

Amy Houser (FMCSA), Dan Murray (ATRI), Sandra Shackelford 

(ATRI), Robert Kreeb (Booz Allen Hamilton), Travis Dunn (Booz Allen 

Hamilton) 

8. Performing Organization Report No. 

9. Performing Organization Name and Address 10. Work Unit No. (TRAIS)

American Transportation Research Institute 

950 North Glebe Road 

Arlington, VA 22203 

11. Contract or Grant No. 

DMTC75-04-F-00104 

13. Type of Report and Period Covered 

Final Report 

September 2004–December 2007

12. Sponsoring Agency Name and Address 

Department of Transportation 

Federal Motor Carrier Safety Administration 

Office of Research and Technology 

1200 New Jersey Avenue SE 

Washington, DC 20590 

14. Sponsoring Agency Code

FMCSA

15. Supplementary Notes 

This program was administered through the Federal Motor Carrier Safety Administration (FMCSA). The FMCSA 

Program Manager is Ms. Amy Houser. 

16. Abstract 

The Federal Motor Carrier Safety Administration’s (FMCSA’s) safety goal is to reduce the number and severity of 

commercial motor vehicle fatalities and crashes. During the last several years, FMCSA has collaborated with the 

trucking industry to test, evaluate, and facilitate the deployment of several onboard safety systems for commercial 

motor vehicles to increase the safety of all roadway users.

The purpose of this report is to evaluate costs and benefits for industry associated with lane departure warning 

systems that can reduce large-truck lane departure crashes. 

The analysis described herein indicates that combination and single-unit vehicles with lane departure warning 

systems will help to prevent lane-departure crashes. Motor carriers purchasing this technology will likely see net 

positive returns on investments within a five-year product lifecycle for the crash types and operating scenarios 

described in this report.

17. Key Word 

Lane departure Warning Systems, Benefit-Cost Analysis, 

Return on Investment, Payback Periods, Motor Carriers, 

Crashes, CMV, Commercial Motor Vehicle 

18. Distribution Statement 

19. Security Classif. (of this report) 

Unclassified

20. Security Classif. (of this page) 

Unclassified

21. No. of Pages 

75 

22. Price 

N/A 

Form DOT F 1700.7 (8-72) Reproduction of completed page authorized.
SI* (MODERN METRIC) CONVERSION FACTORS 

APPROXIMATE CONVERSIONS TO SI UNITS APPROXIMATE CONVERSIONS FR

Symbol When You Know Multiply By To Find Symbol Symbol When You Know Multiply By 

LENGTH LENGTH 

in inches 25.4 millimeters mm mm millimeters 0.039 inft feet 0.305 meters m m meters 3.28 feyd yards 0.914 meters m m meters 1.09 yami miles 1.61 kilometers km km kilometers 0.621 m

AREA AREA 

in2 square inches 645.2 square millimeters mm2 mm2 square millimeters 0.0016 sqft2 square feet 0.093 square meters m2 m2 square meters 10.764 sqyd2 square yards 0.836 square meters m2 m2 square meters 1.195 sqac acres 0.405 hectares ha ha hectares 2.47 acmi2 square miles 2.59 square kilometers km2 km2 square kilometers 0.386 sq

VOLUME VOLUME 

fl oz fluid ounces 29.57 milliliters ml ml milliliters 0.034 flugal gallons 3.785 liters l l liters 0.264 gaft3 cubic feet 0.028 cubic meters m3 m3 cubic meters 35.71 cuyd3 cubic yards 0.765 cubic meters m3 m3 cubic meters 1.307 cu

MASS MASS 

oz ounces 28.35 grams g g grams 0.035 oulb pounds 0.454 kilograms kg kg kilograms 2.202 poT short tons (2000 lbs) 0.907 megagrams Mg Mg megagrams 1.103 sh

TEMPERATURE (exact) TEMPERATURE (exact) 

°F Fahrenheit 5(F-32)/9 Celsius °C °C Celsius 1.8 C + 32 F

temperature or (F-32)/1.8 temperature temperature te

ILLUMINATION ILLUMINATION 

fc foot-candles 10.76 lux lx lx lux 0.0929 fofl foot-Lamberts 3.426 candela/m2 cd/m2 cd/m2 candela/m2 0.2919 fo

FORCE and PRESSURE or STRESS FORCE and PRESSURE or STR

lbf pound-force 4.45 newtons N N newtons 0.225 ppsi pound-force per square inch 6.89 kilopascals kPa kPa kilopascals 0.145 p

p

*SI is the symbol for the International System of Units. Appropriate rounding should be made to comply with section 4 of ASTM E380. 
TABLE OF CONTENTS 

ACRONYMS.................................................................................................................................V

EXECUTIVE SUMMARY .......................................................................................................VII

1. INTRODUCTION......................................................................................................................1

1.1 TECHNOLOGY DESCRIPTIONS...............................................................................1 

1.2 MACK FIELD OPERATIONAL TEST........................................................................3 

1.3 BENEFIT-COST ANALYSIS ASSUMPTIONS..........................................................4 

2. BENEFIT-COST ANALYSIS STEPS .....................................................................................5

2.1 BENEFITS IN TERMS OF CRASH AVOIDANCE....................................................5 

2.2 TECHNOLOGY AND DEPLOYMENT COSTS.........................................................6 

2.3 BENEFIT-COST ANALYSIS CALCULATIONS .......................................................6 

3. BENEFITS CALCULATIONS ................................................................................................7

3.1 STEP 1: ESTIMATE CRASHES PREVENTABLE BY THE LDWS .........................7 

3.2

......................................................................................10 

STEP 2: ESTIMATE THE CRASH COSTS FOR THE CRASHES 

PREVENTABLE BY LDWS

3.3

...........................................21 

STEP 3: ESTIMATE CRASH COSTS BASED ON VEHICLE MILES 

TRAVELED AND EXPECTED CRASH REDUCTION

4. COST CALCULATIONS .......................................................................................................24

4.1 STEP 4: ESTIMATE THE TECHNOLOGY AND DEPLOYMENT COSTS...........24 

5. BENEFIT-COST ANALYSIS CALCULATIONS ...............................................................26

5.1 STEP 5: CALCULATE NET PRESENT VALUES OF BENEFITS AND COSTS...26 

5.2 STEP 6: SENSITIVITY ANALYSIS..........................................................................30 

6. FINDINGS AND CONCLUSIONS........................................................................................38

7. REFERENCES.........................................................................................................................39

LIST OF APPENDICES 

APPENDIX A: DESCRIPTION OF DATA SETS ..................................................................41

APPENDIX B: SUPPORTING DATA .....................................................................................45

APPENDIX C: COST DATA – MOTOR CARRIER QUESTIONNAIRE AND 

RESPONDENT DEMOGRAPHICS ................................................................................47

APPENDIX D: ACKNOWLEDGMENTS ...............................................................................59

i 
LIST OF TABLES 

Table 1. Mean Annual Number of Large-Truck Lane Departure Crashes by Crash Severity, 

2001–2005....................................................................................................................... 9 

Table 2. Mean Annual Number of Large-Truck Lane Departure Crashes by Crash Outcome 

and Severity, 2001–2005................................................................................................. 9 

Table 3. Estimated Mean Annual Number of Crashes Preventable by LDWS by 

Crash Severity, 2001–2005 ........................................................................................... 10 

Table 4. Median Driver-Replacement Cost Categories Per Fatal or Injury Crash ....................... 12 

Table 5. Average Annual Numbers of Truck Driver Injuries and Fatalities per Crash, 

2001–2005..................................................................................................................... 13 

Table 6. Average Labor and Workers’ Compensation Costs per SVRD Collision Crash............ 13 

Table 7. Average Labor and Workers’ Compensation Costs per SVRD Rollover Crash ............ 13 

Table 8. Average Labor and Workers’ Compensation Costs per ODLD and SDLD 

Sideswipe Crash ............................................................................................................ 14 

Table 9. Average Labor and Workers’ Compensation Costs per ODLD Head-on Crash ............ 14 

Table 10. Median Operational Costs per Crash............................................................................ 15 

Table 11. Median Environmental Costs per Crash ....................................................................... 15 

Table 12. Median Property Damage Costs per Crash................................................................... 16 

Table 13. Average Legal Fees and Court Costs per SVRD Collision Crash................................ 16 

Table 14. Average Legal Fees and Court Costs per SVRD Rollover Crash................................. 16 

Table 15. Average Legal Fees and Court Costs per ODLD and SDLD Sideswipe Crash ........... 17 

Table 16. Average Legal Fees and Court Costs per Head-on Crash ............................................ 17 

Table 17. Average Annual Numbers of Injuries and Fatalities per Crash, 2001–2005................ 17 

Table 18. Average Settlement Costs per Injury and Fatal SVRD Collision Crash....................... 18 

Table 19. Average Settlement Costs per Injury and Fatal SVRD Rollover Crash ....................... 18 

Table 20. Average Settlement Costs per Injury and Fatal SDLD Sideswipe Crash..................... 18 

Table 21. Average Settlement Costs per Injury and Fatal ODLD Sideswipe Crash .................... 18 

Table 22. Average Settlement Costs per Injury and Fatal Head-on Crash ................................... 18 

Table 23. Cost Estimates per Crash by Crash Type and Crash Severity for Lane Departure 

Crashes.......................................................................................................................... 20 

Table 24. LDWS: Average Annual Crash Costs per Crash Avoided for an Average Annual 

VMT at Low Efficacy Rates ......................................................................................... 22 

Table 25. LDWS: Average Annual Crash Costs per Crash Avoided for an Average Annual 

VMT at High Efficacy Rates......................................................................................... 23 

Table 26. Cost of LDWS, if Financed .......................................................................................... 24 

Table 27. Federal Tax Savings due to Depreciation of LDWS .................................................... 25 

Table 28. Total Costs of Technology Deployment with and without Financing.......................... 25 

Table 29. Present Value of the Benefits of LDWS at Low Efficacy Rates Using 3% and 

7% Discount Rates........................................................................................................ 26 

Table 30. Present Value of the Benefits of LDWS at High Efficacy Rates Using 3% and 

7% Discount Rates........................................................................................................ 26 

ii 
Table 31. Present Value of the Costs of LDWS Using 3% and 7% Discount Rates.................... 27 

Table 32. Anticipated Benefits per Dollar Spent for Purchasing LDWS, without Financing...... 27 

Table 33. Anticipated Benefits per Dollar Spent for Purchasing LDWS, with Financing ........... 27 

Table 34. Payback Period in Months............................................................................................ 28 

Table 35. Motor Carrier Perceptions of Crash Cost Importance .................................................. 29 

Table 36. Cost Estimates per Crash by Crash Type and Crash Severity for Lane Departure 

Crashes with Insurance Deductible of $50,000............................................................. 31 

Table 37. Cost Estimates per Crash by Crash Type and Crash Severity for Lane Departure 

Crashes with Insurance Deductible of $5,000............................................................... 32 

Table 38. LDWS: Average Annual Crash Costs per Crash Avoided for an Average Annual 

VMT of 100,000 VMT at Low Efficacy Rates............................................................. 33 

Table 39. LDWS: Average Annual Crash Costs per Crash Avoided for an Average Annual 

VMT of 100,000 VMT at High Efficacy Rates ............................................................ 33 

Table 40. Anticipated Benefits per Dollar Spent for Purchasing LDWS per Crash Avoided for 

an Average Annual VMT of 100,000 VMT, 3% Discount Rate with Financing.......... 33 

Table 41. Anticipated Benefits per Dollar Spent for Purchasing LDWS per Crash Avoided for 

an Average Annual VMT of 100,000 VMT, 7% Discount Rate with Financing.......... 33 

Table 42. Cost Estimates per Lane Departure Crash by Crash Severity with High-Value 

Cargo Damages of $50,000........................................................................................... 35 

Table 43. Cost Estimates per Lane Departure Crash by Crash Severity with High-Value 

Cargo Damages of $1,000,000...................................................................................... 36 

Table 44. Anticipated Benefits per Dollar Spent for Purchasing LDWS per Crash Avoided for 

an Average Annual VMT of 100,000 VMT, 3% Discount Rate with Financing.......... 37 

Table 45. Anticipated Benefits per Dollar Spent for Purchasing LDWS per Crash Avoided for 

an Average Annual VMT of 100,000 VMT, 7% Discount Rate with Financing.......... 37 

Table 46. GES Fields and Variables Defining Crashes Addressed by LDWS............................. 42 

Table 47. Average Annual VMT (millions of miles) for Combination Vehicles, 2001–2005..... 44 

Table 48. Annual Number of SVRD Collision PDO, Injury, and Fatal Crashes, 2001–2005...... 45 

Table 49. Annual Number of SVRD Rollover PDO, Injury, and Fatal Crashes, 2001–2005 ...... 45 

Table 50. Annual Number of SDLD Sideswipe PDO, Injury, and Fatal Crashes, 2001–2005 .... 45 

Table 51. Annual Number of ODLD Sideswipe PDO, Injury, and Fatal Crashes, 2001–2005 ... 45 

Table 52. Annual Number of ODLD Head-on PDO, Injury, and Fatal Crashes, 2001–2005 ...... 45 

Table 53. Annual Number of Injuries and Fatalities in SVRD Collisions, 2001–2005................ 46 

Table 54. Annual Number of Injuries and Fatalities in SVRD Rollovers, 2001–2005 ................ 46 

Table 55. Annual Number of Injuries and Fatalities in SDLD Sideswipes, 2001–2005.............. 46 

Table 56. Annual Number of Injuries and Fatalities in ODLD Sideswipes, 2001–2005 ............. 46 

Table 57. Annual Number of Injuries and Fatalities in ODLD Head-ons, 2001–2005................ 46 

iii 
iv 

LIST OF FIGURES 

Figure 1. AutoVue LDWS .............................................................................................................. 2 

Figure 2. SafeTRAC LDWS Driver Display .................................................................................. 3 

Figure 3. Single-Vehicle Roadway Departures Addressed by LDWS ........................................... 7 

Figure 4. Same-Direction Lane Departures Addressed by LDWS................................................. 8 

Figure 5. Opposite-Direction Lane Departures Addressed by LDWS ........................................... 8 
ACRONYMS 

ATRI American Transportation Research Institute 

BCA Benefit–Cost Analysis 

BLS U.S. Department of Commerce, Bureau of Labor Statistics 

CMV Commercial Motor Vehicle 

FARS Fatality Analysis Reporting System/Fatal Accident Reporting System 

FMCSA Federal Motor Carrier Safety Administration 

FOT Field Operational Test 

GES General Estimates System 

HAZMAT Hazardous Materials 

IVI Intelligent Vehicle Initiative 

LDWS Lane Departure Warning System, Systems 

MACRS Modified Accelerated Cost Recovery System 

NASS National Sampling Automotive System 

NHTSA National Highway Traffic Safety Administration 

ODLD Opposite-Direction Lane Departure 

OEM Original Equipment Manufacturer 

OSS Onboard Safety System 

PAR Police Traffic Accident Report 

PDO Property Damage Only 

SDLD Same-Direction Lane Departure 

SVRD Single-Vehicle Roadway Departure 

USDOT United States Department of Transportation 

VMT Vehicle Miles Traveled 

v 

EXECUTIVE SUMMARY 

INTRODUCTION 

The primary safety goal of the Federal Motor Carrier Safety Administration (FMCSA) is to 

reduce the number and severity of commercial motor vehicle (CMV) crashes. Over the last 

several years, FMCSA has collaborated with the trucking industry to test, evaluate, and facilitate 

the deployment of several onboard safety systems (OSS) for CMVs in an effort to enhance the 

safety of all roadway users. 

As part of an ongoing FMCSA effort to encourage voluntary adoption of onboard safety systems, 

this analysis builds on the previous field operational testing by changing the focus of the benefitcost assessments from societal impacts to more targeted motor carrier industry outcomes, since 

motor carriers are the end-users that are responsible for investment and deployment of onboard 

safety systems. The purpose of this benefit-cost analysis (BCA) is to provide return on 

investment information to the motor carrier industry in support of future decisions on the 

purchase of lane departure warning systems (LDWS). According to the motor carrier industry, 

verifying associated costs and benefits of safety systems is critical for deployment, since these 

systems must prove to be beneficial, cost-effective investments that meet the users’ needs. 

This document presents the BCA for LDWS from a motor carrier perspective. However, other 

industry stakeholders, such as insurance companies, vendors, and risk managers, can equally 

apply the calculations to their own internal assessments and programs. 

TECHNOLOGY DESCRIPTION 

LDWS are forward-looking, vision-based systems, consisting of a main unit and small video 

camera mounted on the vehicle’s windshield, recording data about the upcoming roadway. 

Algorithms within LDWS interpret video images of the lane to estimate the vehicle state (lateral 

position, speed, heading, etc.) and the road alignment (lane width, road curvature, etc.). LDWS 

warn drivers of a lane departure when the vehicle is traveling above a certain speed threshold and 

the vehicle’s turn signal is not being used to make an intended lane change or departure. In 

addition, LDWS notify drivers when lane markings are inadequate for detection, or when the 

system itself malfunctions. LDWS do not take any automatic action to avoid a lane departure or 

to control the vehicle; therefore, drivers remain responsible for the safe operation of their 

vehicles. 

Types of crashes that can be prevented through the use of LDWS include: 

• Single-vehicle roadway departure (SVRD): Crash in which a truck departs the roadway 

from its lane of travel, either to the left or to the right 

• Same-direction lane departure (SDLD): Crash in which a truck departs its lane of 

travel and enters into a lane of traffic traveling in the same direction as the truck 

• Opposite-direction lane departure (ODLD): Crash in which a truck departs its lane of 

travel and enters into an oncoming-traffic lane 

vii 
These lane departure crash types can include different crash outcomes, such as rollovers, head-on 

collisions, and sideswipes. 

BENEFIT-COST ANALYSIS 

For this BCA, the potential benefit, in terms of crash cost avoidance, was measured against the 

purchase, installation, and operational costs of these collision warning systems in motor carrier 

operations. The primary data source for benefits was information provided by insurance 

companies and motor carriers on actual expenses incurred due to CMV crashes. As a result, this 

assessment incorporates actual motor-carrier-based benefit-cost data. 

The methodology for this analysis was based on estimates of crash cost avoidance for the 

principal types of crashes that can be addressed by LDWS on straight trucks and combination 

vehicles. LDWS benefits were based on reducing the occurrence of large-truck lane departure 

crashes. To obtain a measure of crash cost avoidance, the number of crashes that the technology 

may prevent each year per vehicle miles traveled (VMT) was determined. Next, using 

information provided by motor carriers, legal experts, insurance companies, and others, the 

actual crash costs which are paid by the motor carrier industry were determined for each of the 

associated crash types. As a result, trucking companies can use this cost information as a basis 

for evaluating the potential crash avoidance benefits of LDWS compared to the purchase and 

usage costs of the technology. 

The motor carrier crash costs that may be prevented by the use of LDWS, or whose severity may 

be decreased, include: 

• Labor Costs 

– Training 

– Testing 

– Hiring and orientation 

– Recruitment 

• Workers’ Compensation Costs 

• Operational Costs 

– Cargo damage due to crash 

– Cargo delivery delays 

– Loading and unloading cargo 

– Towing, inventory, and storage 

• Environmental Costs 

– Fines 

– Clean-up costs 

• Property Damage and Auto Liability Costs 

• Legal Costs 

– Court costs 

– Legal fees and costs 

– Out-of-pocket settlements 

viii 
SUMMARY OF FINDINGS AND CONCLUSIONS 

In order to apply the costs specifically to motor carriers, this analysis was based on the 

assumption that these crash costs would be incurred by motor carriers with deductibles equal to 

or above total crash costs, or by self-insured motor carriers. However, other industry 

stakeholders, such as insurance companies, vendors, and risk managers, can equally apply the 

calculations to their own internal assessments and programs. The following findings and 

conclusions were derived from the benefit-cost analysis. 

Using low and high estimates of efficacy rates ranging from 23 percent to 53 percent derived 

from a field test and industry input (see Section 3.1.2), it was estimated that LDWS has the 

potential to reduce approximately 1,069–2,463 SVRD collisions, 627–1,307 SVRD rollovers, 

1,111–2,223 SDLD sideswipes, 997–1,992 ODLD sideswipes, and 59–118 ODLD head-ons. 

Based on the average estimates of the crash cost categories listed in the previous section, these 

property-damage-only (PDO) crashes range in cost from $100,150–$196,958, injury crashes are 

in the range of $135,096–$455,936, and fatal crashes are in the range of $885,150–$1,252,872. 

These avoided costs or benefits of the LDWS were based on a typical or average incident; 

therefore, they should be interpreted as approximations of typical expected values.

Crash avoidance costs based on VMT and expected crash reduction resulting from deployment 

of LDWS were calculated for annual VMT values of 80,000, 100,000, 120,000, 140,000, and 

160,000 miles. However, the research relied heavily on documented annual average VMTs of 

100,000 to 110,000 for class 6–8 trucks used in a variety of operational environments. 

The technology and deployment cost estimates for the LDWS included the technology purchase, 

maintenance costs, and cost of training drivers in the use of the technology. Purchasing the 

technology with or without financing was also considered in these costs, as well as Federal tax 

savings due to depreciation of the LDWS equipment. These total costs ranged from 

approximately $765 to $866.40. 

The net present values of the LDWS were computed by discounting future benefits and costs for 

the values using discount rates of 3 and 7 percent. Discounting benefits and costs transforms 

gains and losses occurring in different time periods to a common unit of measurement. These 

values were calculated over the first five years of deployment, since estimates of product 

lifecycles are speculative beyond five years. When the anticipated present value costs and 

benefits of the LDWS were compared, the benefits of using the system over a period of five 

years outweighed the costs associated with purchasing the systems at each efficacy rate and for 

each VMT category. For every dollar spent, carriers get more than a dollar back in benefits that 

could be quantified for this analysis—ranging from $1.37 to $6.55, based on different VMTs, 

system efficacies, and technology purchase prices. 

Payback periods were also calculated to estimate the length of time required to recover the initial 

investments made for the LDWS. These payback periods ranged from nine to 37 months, 

depending on the different VMTs, system efficacies, and technology purchase costs. 

ix 
x 

Since certain industry segments will experience different costs and benefits because of 

differences in operating practices, a sensitivity analysis was performed to show some of these 

differences for small carriers and high-value cargo carriers. 

It was important to consider small carriers separately from large carriers because of discrete 

differences in their financial and operating environments. For instance, small carriers are 

unlikely to be self-insured; therefore, out-of-pocket costs per crash will initially be much lower 

for small carriers. Since the median deductible for a motor carrier will fall in the range of 

$5,000–$50,000, these low and high deductibles were considered as part of the benefit-cost 

analysis. 

Based on the overall probability of involvement in a lane departure crash, small carriers that have 

lower deductibles (say, $5,000 per truck) may not achieve a breakeven point—a dollar or more 

of benefits for each dollar spent on financing the technology—in the first five years. However, as 

the number of crashes and/or their severity increases, insurance premium costs will increase until 

the carrier’s insurance costs equal or exceed the investment costs of the LDWS, or the carrier is 

dropped altogether by the insurance provider. For this reason, an investment in the technology 

may still be considered judicious for added protection against rising insurance costs. In addition, 

indirect costs of crashes, such as impacts on safety ratings, public image, and employee morale, 

can add to the benefits of purchasing onboard safety systems. 
1. INTRODUCTION 

The safety goal of the Federal Motor Carrier Safety Administration (FMCSA) is to reduce the 

number and severity of commercial motor vehicle (CMV) crashes. Over the last several years, 

FMCSA has collaborated with the trucking industry to test, evaluate, and encourage the 

deployment of onboard safety systems (OSS) for CMVs in an effort to enhance the safety of all 

roadway users. 

FMCSA is now promoting voluntary adoption of these systems within trucking fleets by 

initiating steps to work closely with the trucking industry. Lane Departure Warning Systems 

(LDWSs) are one type of commercially available onboard safety technology designed to prevent 

crashes by warning drivers of unintended lane or roadway departures. 

Through the Intelligent Vehicle Initiative (IVI), the U.S. Department of Transportation (USDOT) 

completed an independent evaluation of the Mack IVI Field Operational Test (FOT) (FMCSA, 

2006). The report included a societal benefit-cost analysis over a 20-year period of deployment 

for an LDWS designed to prevent run-off-the-road crashes. While succeeding in identifying the 

societal costs that could be linked to CMV crashes, the study did not focus on the direct costs 

incurred by commercial motor carriers. The avoidance of societal costs does not immediately 

translate into bottom-line cost savings for the motor carriers purchasing the OSS. 

As part of an ongoing FMCSA effort to encourage voluntary adoption of LDWS, this benefitcost analysis builds on the previous FOT by changing the focus of the benefit-cost analysis from 

societal costs to the costs incurred by the motor carrier industry—the end-users that are 

responsible for investment and deployment of the technology. The purpose of this benefit-cost 

analysis is to provide cost and return on investment information to the motor carrier industry in 

support of future decisions to purchase LDWS. The motor carrier industry has confirmed that 

verifying associated costs and benefits of safety systems is critical to spurring deployment, since 

these systems must prove to be beneficial, cost-effective investments that meet the users’ needs. 

1.1 TECHNOLOGY DESCRIPTIONS 

Fundamentally, LDWS perform three main functions: 

• Detect lane markings ahead of the vehicle 

• Monitor the vehicle’s position in the lane 

• Warn the driver when the vehicle is diverging (or beginning to diverge) from the lane 

without turn signal activation 

Currently available LDWS are forward-looking, vision-based systems, consisting of a main unit 

and small video camera mounted on the vehicle’s windshield, recording data about the upcoming 

roadway. Algorithms within LDWS interpret video images of the lane to estimate the vehicle 

state (lateral position, speed, heading, etc.) and the road alignment (lane width, road curvature, 

etc.). LDWS warn drivers of a lane departure when the vehicle is traveling above a certain speed 

threshold and the vehicle’s turn signal is not being used to make an intended lane change or 

departure. In addition, LDWS notify drivers when lane markings are inadequate for detection, or 

when the system malfunctions. LDWS do not take any automatic action to avoid a lane departure 

1 
or to control the vehicle; therefore, drivers remain responsible for the safe operation of their 

vehicles (FMCSA 2005). 

Since LDWS are vision-based systems, their performance may be limited. LDWS do not operate 

at delivery points and roads where the truck travels at speeds below the minimum LDWS 

tracking speed, typically 35 mph. As a result, LDWS notify drivers when the system is 

operational, but do not provide warnings under these conditions. LDWS may be beneficial in 

low-visibility conditions (e.g., rain, fog, and falling snow) when lane markings are present. 

However, because of reflections on wet road surfaces, LDWS may occasionally be unable to 

detect lane markings; under these conditions, the lane-tracking indicator will show that the 

system is not providing warnings. When lane markings are not visible on roads covered by mud, 

ice, or snow, the lane tracking indicator will show that the system is inactive. 

Current LDWS suppliers for the large-truck industry in the United States include Iteris, 

AssistWare, and Delphi. The Iteris AutoVue LDWS is shown in Figure 1. During an unsignaled 

lane change or roadway departure, the Iteris AutoVue system emits a left- or right-side audio 

warning, similar to the sound of a vehicle driving over a rumble strip. The Iteris AutoVue LDWS 

is offered as a factory-installed option by several original equipment manufacturers (OEMs). 

Other camera-based systems are the Delphi and Mobileye LDWS, which feature alert 

configurations including simulated rumble strips, audible tones, and haptic alerts. 

Figure 1. AutoVue LDWS 

The AssistWare SafeTRAC LDWS is primarily marketed directly to fleets as an aftermarket 

product. As shown in Figure 2, AssistWare’s SafeTRAC system provides a graphical display 

depicting the vehicle’s current position in the lane, along with the lane boundary locations and 

types and a drift alert, which is an audible tone indicating that the truck is about to travel out of 

its lane or has already done so, when the driver deviates from the lane without using the turn 

signal. SafeTRAC also offers fleet management and driver monitoring features, such as a 

manufacturer-developed “alertness” score. 

2 
Figure 2. SafeTRAC LDWS Driver Display 

O n

D ro w sy D rive r W arn in g S ystem

S afe TRAC

Push • Sel

V o l/A d j

8 6

A lertn ess

Score

O n /O ff

S w itch

Lane Tracker

S tatus

C o n tro l K n o b

(Tu rn fo r V olum e,

P ush for M enu)

1.2 MACK FIELD OPERATIONAL TEST 

The Mack FOT evaluation focused on the use of LDWS to prevent single-vehicle roadway 

departures, also known as run-off-road crashes, and rollovers not caused by an impact with a 

roadside feature or other obstacle. The test results revealed that under conditions similar to those 

of the field test, the deployment of LDWS would result in a reduction of approximately 21–23 

percent in single-vehicle roadway departure crashes and 17–24 percent reduction in rollover 

crashes. These findings were based upon improved driver lane-keeping behavior and a reduction 

in the frequency of driving conflicts in the FOT. As a result, LDWS were shown to be effective 

in reducing the number of situations in which a single-vehicle roadway departure or rollover 

crash could result, since LDWS provide advance information that the driver can use to avoid a 

potential hazard. 

Use of LDWS also has the potential to reduce some lane departure crashes where the truck 

travels over the lane line. Yet, the safety benefits of the LDWS for these crash types were not 

evaluated in the Mack FOT, because the available FOT data were not sufficient to identify 

driving conflicts associated with crash types such as sideswipes. Specifically, identifying a lane 

departure over the lane line-related conflict requires knowledge of the presence of traffic in an 

adjacent lane and the speed and location of vehicles in the adjacent lane. This information could 

not be obtained from the data available in the FOT with adequate confidence and accuracy. 

However, the approximate number of these types of crashes potentially prevented by LDWS can 

be estimated by analyzing crash data. 

The Mack FOT report included a societal benefit-cost analysis over a 20-year period of 

deployment for an LDWS to prevent single-vehicle roadway departure and rollover crashes. 

Societal costs include many factors, such as the lost productivity of workers caught in traffic 

congestion resulting from truck crashes, or costs of emergency response to crashes. However, 

avoiding these societal costs does not immediately translate into bottom-line cost savings for the 

motor carriers purchasing the OSS. 

As a result, LDWS efficacy results from the Mack FOT were used in this report, but to determine 

the specific costs and benefits of the LDWS in order to aid motor carriers in making purchasing 

decisions, further data collection and analysis were necessary, beyond the studies previously 

conducted. 

3 
1.3 BENEFIT-COST ANALYSIS ASSUMPTIONS 

Large-truck crashes often involve a complex series of critical events and factors, many of which 

can be addressed using OSS. However, crash reduction also depends on motor carrier factors 

which may not be directly addressed by these systems, such as operational characteristics, backroom safety initiatives and motor carrier safety “culture,” and driver selection, training, and 

management practices (Short et al. 2007). As a result of varying degrees of success in addressing 

these motor carrier factors, the levels of crash reduction and cost savings realized from the 

implementation of LDWS may deviate from the projected values in this analysis. 

The trucking industry is a broad collection of many industries, each of which has operating 

characteristics as diverse as the industries they service. Segmentation of the trucking industry is 

often based on the size of fleets, vehicle configurations, geographic range of operations, and 

commodities hauled. Usually one characteristic is insufficient to describe a particular segment, 

and a combination of characteristics is necessary to account for the variety of operations. In an 

effort to address the tremendous diversity found in the trucking industry, real-world information 

and data for this study were provided by carriers and suppliers operating in a wide range of 

industry segments, yet these data may not be representative of the unique characteristics of every 

motor carrier. Some specific areas of diversity among carriers—such as VMT, fleet size, and 

high-value cargo-hauling—were given special attention in order to take account of factors that 

may have a disproportionately large impact on the costs associated with crashes. 

Lastly, the commercial vehicle population is comprised of a wide variety of vehicle types and 

uses. At a general level, two types of vehicles are predominant: combination vehicles (tractortrailers) and straight trucks. These two types of vehicles have very different operating 

characteristics. In general, straight trucks tend to be used in a localized setting, providing pick-up 

and delivery services to customers within a 50- to 100-mile radius of their base of operations. 

Combination vehicles are more often used in regional and long-distance applications, accounting 

for about 30 percent of total commercial vehicles and 65 percent of commercial vehicle miles 

traveled. Because of higher mileage traveled and consequent greater exposure to the risk of 

crashes, and because of the greater severity of crashes when they do occur, combination trucks 

have the highest crash cost per vehicle over the average operational life of the vehicle (Wang et 

al. 1999). 

Since unintentional lane departures can occur along any route, many fleet types may benefit from 

using LDWS. These systems can be installed on any truck configuration or combination of 

single-unit vehicles. Yet they may be most promising for trucks that have accumulated high 

mileage over their operational lives and travel primarily at constant speeds greater than 35 mph. 

4 
2. BENEFIT-COST ANALYSIS STEPS 

This section outlines the steps involved in estimating typical costs and benefits of LDWS for 

motor carriers that are considering investing in OSS technologies. Appendix A provides the 

details on all data sets used in the benefit-cost analysis. The total benefits of deploying LDWS 

include direct savings due to avoided crashes and indirect benefits from overall improvement in 

fleet safety. The costs of deploying LDWS include the initial capital investment required for the 

technology purchase, as well as training and maintenance costs. 

2.1 BENEFITS IN TERMS OF CRASH AVOIDANCE 

Step 1: Estimate Crashes Preventable by LDWS 

Crash data in the General Estimates System (GES) were used to estimate the lane departure 

crashes that can be prevented by using LDWS on large trucks over a five-year period, 2001–

2005 (NHTSA 2005): 

• Single-vehicle roadway departures (SVRD): Crashes in which a truck departed the 

roadway from its lane of travel, either to the left or to the right 

• Same-direction lane departures (SDLD): Crashes in which a truck departed its lane of 

travel and entered into a lane of traffic traveling in the same direction as the truck

• Opposite-direction lane departures (ODLD): Crashes in which a truck departed its 

lane of travel and entered into an oncoming-traffic lane 

Lane departure crash types can include different crash outcomes, such as rollovers, head-ons, and 

sideswipes. As a result, information from the GES data was used to estimate outcomes from 

different lane departure crashes. Then, using information from the Mack FOT and motor carriers, 

efficacy rates were determined and used to estimate the portion of these types of crashes that 

could be prevented by LDWS. Finally, these data were used to estimate the costs for rollover, 

sideswipe, head-on, and run-off roadway crashes involving property damage only (PDO), 

injuries, and fatalities. 

Step 2: Estimate Crash Costs for Crashes Preventable by LDWS 

Crash costs were derived from a combination of resources, including motor carriers, insurance 

companies, legal firms, a review of large-truck statistics, and expert opinion. In general, these 

costs related to the following major areas: 

• Labor costs, including recruitment, training, testing, hiring, and orientation 

• Workers’ Compensation costs 

• Operational costs, including post-crash costs, cargo damage, towing, inventory, and 

storage costs 

• Property damage costs 

• Environmental costs 

• Legal costs, including attorney fees and injury and fatality settlement costs 

5 
Next, the total crash costs were determined for the types of crashes preventable by LDWS. These 

costs were summed to determine per-crash cost estimates for crashes of varying degrees of 

severity—PDO, injury, or fatality—preventable by LDWS. 

Step 3: Estimate Crash Costs Based on Vehicle Miles Traveled and Expected Crash 

Reduction 

While the analysis in Step 1 provides information on the number of truck crashes preventable by 

LDWS, and Step 2 provides estimates of the costs of those crashes, motor carriers need to know 

what cost-reduction value of the avoided crashes they can expect from using LDWS. As a result, 

this step involves estimating crash avoidance costs based on VMT, and estimating the expected 

crash reductions from deploying LDWS. To address the variances in the average VMTs traveled 

by carriers in different operating conditions, the crash costs were calculated for annual VMT 

values of 80,000, 100,000, 120,000, 140,000, and 160,000 miles. However, the research relied 

heavily on documented annual average VMTs of 100,000 to 110,000 for class 6–8 trucks used in 

a variety of operational environments. 

2.2 TECHNOLOGY AND DEPLOYMENT COSTS 

Step 4: Estimate Technology and Deployment Costs 

The technology and deployment cost estimates for LDWS included the technology purchasing 

price, maintenance costs, and cost of training drivers in the use of the technology. Purchasing the 

technology with or without financing was also considered in estimating these costs, as were 

Federal tax savings due to depreciation of the LDWS equipment. 

2.3 BENEFIT-COST ANALYSIS CALCULATIONS 

Step 5: Calculate Net Present Values of Benefits and Costs and Estimate Payback Periods 

The net present values of LDWS were computed by discounting future benefits and costs for the 

values in Steps 3 and 4 using discount rates of 3 and 7 percent. Discounting benefits and costs 

transforms gains and losses occurring in different time periods to a common unit of 

measurement. These values were determined over the first five years of deployment, since 

estimates of product lifecycles are speculative beyond five years. Payback periods were also 

calculated to estimate the length of time required to recover the initial investments made in 

purchasing the LDWS. 

Step 6: Sensitivity Analysis 

Certain industry segments will experience different costs and benefits due to differences in 

operating practices. The costs and benefits for these industry segments will fall outside the 

normal scope of carrier operations used for the crash cost estimates in Step 5. Additional 

analyses were conducted for small carriers, as well as for carriers hauling high-value cargo. 

6 
3. BENEFITS CALCULATIONS 

This section presents the first three steps in the benefit-cost analysis to determine the benefits 

relating to the crashes that can be prevented by using LDWS. 

3.1 STEP 1: ESTIMATE CRASHES PREVENTABLE BY THE LDWS 

The first step in this benefit-cost analysis involved estimating how many crashes are likely to be 

preventable by LDWS. This estimate was based on crash data, Mack FOT results, and motor 

carrier information. 

3.1.1 Crash Data 

Crash data in the GES were used to estimate the sets of lane departure crashes preventable by 

LDWS over a five-year period, 2001–2005: 

• Single-vehicle roadway departures (SVRD): Crashes in which a truck departed the 

roadway from its lane of travel, either to the left or to the right. LDWS can help to 

prevent SVRD crashes of the types that typically result in rollovers or collisions with 

fixed objects, as shown in Figure 3 (NHTSA 2005, 88). 

Figure 3. Single-Vehicle Roadway Departures Addressed by LDWS 

7 
• Same-direction lane departures (SDLD): Crashes in which a truck departed its lane of 

travel over the lane line and entered into a lane of traffic traveling in the same direction

as the truck without the intention of changing lanes. LDWS can help to prevent SDLD 

crashes of the types shown in Figure 4, which typically result in sideswipes (NHTSA 

2005, 89). 

Figure 4. Same-Direction Lane Departures Addressed by LDWS 

• Opposite-direction lane departures (ODLD): Crashes in which a truck departed its 

lane of travel and entered into an oncoming-traffic lane. LDWS can help to prevent 

ODLD crashes of the types shown in Figure 5, which typically result in sideswipes and 

head-on crashes (NHTSA 2005, 89). 

Figure 5. Opposite-Direction Lane Departures Addressed by LDWS 

GES data were used as the basis for estimating costs for lane departure collisions involving PDO, 

injuries, injuries, and/or fatalities. 

Table 1 provides the crash data for the different lane departure crash degrees of severity 

addressed by the LDWS. The GES Accident, Vehicle, Event, and Person files were used to 

determine the total number of crashes included in the analysis for a five-year period. The annual 

crash data are presented in Appendix B. Since GES is a probability-based nationally 

representative sample of all police-reported fatal, injury, and PDO crashes, the data from GES 

yield national estimates, calculated using a weighting procedure. Within GES, the estimated 

number of crashes for the type described in a record is given by the “Weight” variable. The GES 

8 
Vehicle and Person files were used to count the number of lane departure crashes for large trucks 

that resulting in fatalities, injuries, or PDO. Next, the weighted-numbers crashes in each category 

were summed and divided by 5 (five years) to provide a mean annual number of crashes by crash 

severity. 

Table 1. Mean Annual Number of Large-Truck Lane Departure Crashes 

by Crash Severity, 2001–2005 

Crash Type PDO Crashes Injury Crashes Fatal Crashes TOTAL 

SVRD 4,748 2,412 102 7,262 

SDLD 4,268 563 2 4,833 

ODLD 3,835 651 100 4,586 

Total 12,851 3,626 204 16,681 

Table 2. Mean Annual Number of Large-Truck Lane Departure Crashes 

by Crash Outcome and Severity, 2001–2005 

Crash Outcome PDO Crashes Injury Crashes Fatal Crashes TOTAL 

SVRD Collisions 3,602 982 64 4,648 

SVRD Rollovers 1,146 1,430 38 2,614 

SDLD Sideswipes 4,268 562 2 4,832 

ODLD Sideswipes 3,737 557 37 4,331 

ODLD Head-ons 98 95 63 256 

Total 12,851 3,626 204 16,681 

3.1.2 Efficacy of LDWS 

While the crashes presented in Table 1 and Table 2 represent the average numbers of the types of 

crashes potentially preventable by LDWS, this technology will probably not prevent all of these 

crashes. For example, LDWS will not prevent crashes due to loss of steering control (brake lockup) as a vehicle departs a lane or runs off the road, a circumstance which may have been 

included in this data set. Furthermore, crashes initiated by major vehicle mechanical failures, 

such as faulty brakes, steering loss, or tire blowouts, would not be considered preventable by 

LDWS systems. In addition, these systems would have limited effectiveness in a crash that 

occurred as a truck drifted off the roadway or struck another vehicle in an adjacent lane when the 

driver was incapacitated, seriously ill, or unconscious. Since these types of incidents may have 

occurred in the GES data sets of crashes shown in Table 2, efficacy rates were estimated for the 

LDWS. 

Efficacy rates or crash prevention rates are the percentages of crashes that, with a high degree of 

probability, LDWS would prevent. Using information from the Mack FOT and motor carrier 

feedback, a range of efficacy rates was determined and used to estimate the percentage of these 

types of crashes that could be prevented by LDWS. Motor carriers provided the average number 

of events that occurred annually in the five-year period under study and estimated the number of 

crashes that could have been prevented by the use of LDWS in their operations. These efficacy 

9 
rates were calculated by dividing the number of crashes preventable with the technology by the 

sum of the number of crashes experienced and the number of crashes avoided. As shown in 

Table 3, the higher rates of efficacy were determined to be 53 percent for SVRD collision (47 out 

of 89 collisions), 50 percent for SVRD rollovers (50 out of 101 rollovers), and 46 percent for 

SDLD and ODLD over-the-lane-line collisions (52 out of 113 collisions). As a result, the 

assumed lower rates of efficacy of LDWS in preventing the different crash outcomes came from 

the Mack FOT, while the higher rates were obtained from motor carrier information. Multiplying 

the numbers of crashes in Table 2 by these efficacy rates resulted in the estimated numbers of 

crashes preventable by LDWS shown in Table 3. 

Table 3. Estimated Mean Annual Number of Crashes Preventable by LDWS 

by Crash Severity, 2001–2005 

Crash Type at % Efficacy PDO Injury Fatal Total 

SVRD Collisions—23% Efficacy 828 226 15 1,069 

SVRD Collisions—53% Efficacy 1,909 520 34 2,463 

SVRD Rollovers—24% Efficacy 275 343 9 627 

SVRD Rollovers—50% Efficacy 573 715 19 1,307 

SDLD Sideswipes—23% Efficacy 982 129 0 1,111 

SDLD Sideswipes—46% Efficacy 1,963 259 1 2,223 

ODLD Sideswipes—23% Efficacy 860 128 9 997 

ODLD Sideswipes—46% Efficacy 1,719 256 17 1,992 

ODLD Head-ons—23% Efficacy 23 22 14 59 

ODLD Head-ons—46% Efficacy 45 44 29 118 

3.2 STEP 2: ESTIMATE THE CRASH COSTS FOR THE CRASHES 

PREVENTABLE BY LDWS 

The second step in this benefit-cost analysis involved estimating the costs of crashes that are 

likely to be preventable by LDWS. 

3.2.1 Cost Data Collection Process 

To develop a comprehensive estimate of crash costs, the American Transportation Research 

Institute (ATRI) collected cost estimates from representative motor carrier constituents within 

the trucking industry. As shown in Appendix C, the Carrier Interview Guide, carriers and 

insurers were asked to estimate their costs with respect to the following data collection cost 

categories: 

• Labor costs related to replacement of drivers due to temporary and permanent driver 

injury, and additional labor costs incurred post-crash 

• Workers’ Compensation costs 

• Operational costs related to cargo damage towing, inventory, and storage 

• Environmental costs 

10 
• Property damage costs 

• Legal costs, including attorney fees and injury and fatality settlement costs 

The survey respondents described how the costs associated with these categories vary depending 

on the type of crash, of the major types of crashes preventable by LDWS. Baseline data were 

also received on the quantity and severity of crashes, categorized by type, which had occurred 

during the last year, as well as the number of drivers who had been injured and/or replaced. In 

addition, the Interview Guide included questions on costs by type of vehicle, cargo, and 

insurance, such as deductible levels or whether the carrier is self-insured and at what levels. 

The Interview Guide design was guided by previous studies and their relevant findings—

specifically, average worker replacement costs from The Costs of Truckload Driver Turnover

(Rodriguez et al. 2000). All of the costs obtained from these interviews were assumed to be in 

2007-year dollars. 

As shown in Appendix C, a broad range of motor carrier fleet sizes, operational types, and 

characteristics were represented. In addition to motor carriers, four insurance companies, two 

environmental clean-up firms, four industry attorneys, and five technology vendors were 

interviewed in support of the crash cost data collection. 

After the initial interview results were synthesized, follow-up interviews were conducted with 

additional representatives of motor carriers, insurers, and legal firms, in order to validate 

responses and address any gaps in the data. They were asked about the cost factors related to 

areas in the data collection cost categories with respect to run-off-the road collisions, rollovers, 

and sideswipes, although several cost categories associated with these specific crashes do not 

vary by crash type. 

After the ranges were identified for the data collection cost categories, median costs were 

determined. While there was little deviation between mean and median cost calculations, 

occasional outliers were evident in certain categories. For instance, rare jury decisions have 

resulted in single-fatality settlements exceeding $10 million, but these are extremely infrequent. 

Since these outlying responses were not representative of the sample as a whole, and would have 

negatively influenced the calculation of a “typical” crash cost, median values were used instead. 

The interview respondents were also asked how the potential crash costs presented might be 

affected by the severity of the crash—for example, whether the crash involved PDO, injuries, or 

fatalities. 

3.2.2 Labor Costs 

In this analysis, labor cost estimates were assumed to be specific to the replacement of the truck 

drivers injured or killed in crashes. Since medical insurance is a basic operating cost that covers 

a broad array of on-the-job and off-the-job illnesses and injuries, and generally covers all 

personnel working for a motor carrier, these costs were not allocated as marginal costs of 

crashes. However, if a driver must be replaced because of a fatal or injury crash, a motor carrier 

would incur added labor costs. 

Driver-replacement cost estimates related to the training, testing, hiring, and orientation activities 

involved when a new driver is brought into the organization. Training costs included any 

11 
ancillary tuition, instructor costs, and team-driver costs. Testing costs included driver 

background check, drug screening tests, and physicals (medical exams). Hiring costs included 

any bonuses and relocation costs provided to new hires. When provided by carriers, orientation 

costs included items such as meals and lodging expenses. Table 4 presents a breakout of these 

median costs per each new driver hired—costs provided by the interviewed motor carriers and 

insurance companies. 

Table 4. Median Driver-Replacement 

Cost Categories Per Fatal or Injury Crash 

Cost Category Cost 

Training $3,350 

Testing $500 

Hiring $500 

Orientation $2,650 

Total $7,000 

3.2.3 Workers’ Compensation 

Workers’ Compensation is designed to protect workers and their dependents against hardships 

from injury or death arising out of the work environment. These employees or their survivors are 

provided with fixed monetary awards covered under Workers’ Compensation, thus eliminating 

the need for excessive litigation. 

Employers with a certain number of employees are legally required to furnish Workers’ 

Compensation coverage. Rather than purchase insurance, some employers choose to self-insure 

their Workers’ Compensation liabilities for reasons of cost-effectiveness, maintaining greater 

control over their claims programs, and increasing safety and loss control management. To 

receive self-insured status, the employer must qualify through an application process, meet 

specified financial requirements, and be approved. 

These specific costs were included in the benefit-cost analysis only when the crash resulted in a 

driver injury or fatality. Workers’ Compensation laws provide the following benefits to an 

employee: 

• Medical Expense—covers the costs of hospitals, doctors, medical treatment, etc. 

• Disability Pay—compensates for lost pay either temporarily, while the employee is 

recovering, or permanently, if the employee is unable to return to work. The amount paid 

varies, but can be as high as one-half to two-thirds of employee’s pre-disability pay. 

• Vocational Rehabilitation—covers costs involved in cases in which the injury renders the 

employee unable to perform the usual duties of his or her occupation, including retraining to enter a new trade or business and physical therapy. 

The median Workers’ Compensation claims of $62,728 for motor vehicle crashes were 

determined from insurance company data. According to insurance companies, approximately 10 

percent of the Workers’ Compensation costs are borne by motor carriers if they are not selfinsured, and the remainder is covered by insurance, as required. In order to isolate those costs 

12 
that are specific to a motor carrier, the research assumption used in this analysis is that the motor 

carrier is self-insured or maintains a per-crash deductible that exceeds total crash costs. 

However, insurers can use the same figures and outputs to understand OSS benefits and impacts 

from an insurer’s perspective. 

These labor and Workers’ Compensation costs apply only when the truck driver is the party 

injured or killed in a large-truck crash. To account accurately for the actual labor costs associated 

with truck crashes, as well as the cost savings that can be expected from the use of LDWS, the 

researchers multiplied labor costs by the average number of injuries and fatalities incurred by 

truck drivers on a per-crash basis. As shown in Table 5, on average, a larger percentage of truck 

drivers are injured or killed per SVRD collision or rollover (90 to 100 percent) than per 

sideswipe and head-on (0 to 30 percent). 

Table 5. Average Annual Numbers of Truck Driver Injuries and Fatalities per Crash, 2001–2005 

Crash Type 

Number 

of Injury 

Crashes 

Number of 

Injuries in 

Crashes 

Number of 

Injuries per 

Crash 

Number 

of Fatal 

Crashes 

Number of 

Fatalities in 

Crashes 

Number of 

Fatalities per 

Crash 

SVRD Collisions 982 914 0.9 64 60 0.9 

SVRD Rollovers 1,430 1,398 1.0 38 38 1.0 

SDLD Sideswipes 562 98 0.2 2 0 0.0 

ODLD Sideswipes 557 118 0.2 37 1 0.0 

ODLD Head-ons 95 14 0.1 63 21 0.3 

Using these rates, the labor and Workers’ Compensation costs associated with injuries and 

fatalities per crash have been calculated as shown in Table 6 through Table 9. 

Table 6. Average Labor and Workers’ Compensation Costs per SVRD Collision Crash 

Cost Category Injury Crash Fatal Crash 

Driver Replacement $6,300 $6,300 

Workers’ Compensation $56,455 $56,455 

Total $62,755 $62,755 

Table 7. Average Labor and Workers’ Compensation Costs per SVRD Rollover Crash 

Cost Category Injury Crash Fatal Crash 

Driver Replacement $7,000 $7,000 

Workers’ Compensation $62,728 $62,728 

Total $69,728 $69,728 

13 
Table 8. Average Labor and Workers’ Compensation Costs per ODLD and SDLD Sideswipe Crash 

Cost Category Injury Crash Fatal Crash 

Driver Replacement $1,400 $0 

Workers’ Compensation $12,546 $0 

Total $13,946 $0 

Table 9. Average Labor and Workers’ Compensation Costs per ODLD Head-on Crash 

Cost Category Injury Crash Fatal Crash 

Driver Replacement $700 $2,100 

Workers’ Compensation $6,273 $18,818 

Total $6,973 $20,918 

3.2.4 Operational Costs 

Operational costs considered in this analysis included direct costs associated with cargo damage, 

delivery delays, and loading and unloading, as well as towing, inventory, storage, and other 

miscellaneous costs. Categories of median operational costs typically paid by motor carriers in 

the event of a SVRD collision, head-on, rollover, or sideswipe crash are presented in Table 10. 

Cargo damage costs, which can reflect extreme ranges in cargo value, included the direct average 

damage to the cargo that occurred as a result of the crash. Cargo delivery delay costs included 

any penalties or reimbursements that the carrier pays as a result of late delivery. Cargo loading 

and unloading costs were direct expenses to the company for moving the cargo from the crash 

scene. Towing costs included costs for the truck (including both the tractor and trailer) being 

towed from the crash site. In addition, there were the inventory and cargo storage costs. 

Miscellaneous costs included a summation of smaller crash-related costs, such as the additional 

expenses associated with calling the customer after the crash, and any crash-associated public 

relations costs. Additional motor carrier operational costs that could be associated with crashes, 

such as costs for emergency supplies (cones, flares, etc.), were described by the interviewed 

carriers as typical “costs of doing business”; therefore, they were not included in this analysis. 

As shown in Table 10, overall operational costs were estimated to be approximately $28,900 for 

SVRD collisions, $28,625 for SVRD rollover crashes, and $13,650 for sideswipes and head-on 

crashes, but these total costs could vary considerably, depending primarily on the value of the 

damaged cargo. 

14 
Table 10. Median Operational Costs per Crash 

Cost Category 

SVRD 

Collisions 

SVRD 

Rollovers 

SDLD and 

ODLD 

Sideswipes 

ODLD 

Head-ons 

Cargo damage $17,500 $15,000 $5,000 $5,000 

Cargo delivery delays $800 $2,875 $750 $750 

Loading and unloading cargo $2,000 $1,850 $2,500 $2,500 

Towing, inventory, and storage $8,250 $8,500 $5,000 $5,000 

Miscellaneous $400 $400 $400 $400 

Total $28,950 $28,625 $13,650 $13,650 

Additional operational costs considered for inclusion in this analysis were citations and penalties 

resulting from crashes. Lane departure crashes may involve fines for such citations as speeding 

or driving too fast for conditions. A collection of information from state and local authorities 

from 10 states and seven cities indicated that the average penalty for these types of fines is 

approximately $140. Since violation citations are not issued in all crashes, and the fines are a 

relatively small expense, they were not included as a cost in the analysis. 

3.2.5 Environmental Costs 

According to environmental remediation companies, environmental clean-up costs tended to 

vary depending on whether or not a body of water was impacted and required clean-up. Based on 

average invoices, the costs for water-impacted clean-up ranged from $500 to over $100,000 per 

crash, depending on the type of waterway involved. If a body of water was not , the clean-up 

costs ranged from $300 to over $20,000 per crash. The variability in range of cost in both 

cases—water impacted and no water impacted—depended on what type of substance was leaked 

or spilled, and the amount involved. 

In addition to these costs, a carrier may be required to pay fines for the environmental damage 

caused. The costs of these fines also varied based on the severity of the crash and on whether or 

not water was impacted. Carriers reported that the average environmental fine for a crash in 

which no water was impacted is $4,000; the average environmental fine for a crash in which 

water was impacted was $7,500. For this analysis, the conservative figure of $4,000 is used as 

the environmental fine per crash. The total median environmental costs used in this analysis are 

shown in Table 11. 

Table 11. Median Environmental Costs per Crash 

Cost Category 

SVRD 

Collisions 

SVRD 

Rollovers 

SDLD and 

ODLD 

Sideswipes 

ODLD 

Head-ons 

Environmental fine (no water impacted) $4,000 $4,000 $4,000 $4,000 

Out-of-pocket environmental clean-up costs $31,000 $78,500 $20,000 $20,000 

Total $35,000 $82,500 $24,000 $24,000 

15 
3.2.6 Property Damage Costs 

Median costs for property damage in crashes, as provided by the interviewed insurers and 

carriers for crashes addressed by LDWS, are presented in Table 12. Infrastructure and 

surrounding structural damage refer to the crash-caused damage to structures other than the 

truck, such as any damage to the environment in which the crash took place and damages to 

other vehicles. However, in this research, the term PDO refers specifically to the damage to the 

truck. 

Table 12. Median Property Damage Costs per Crash 

Cost Category 

SVRD 

Collisions 

SVRD 

Rollovers 

SDLD and 

ODLD 

Sideswipes 

ODLD 

Head-ons 

Damage to structures other than the truck $2,500 $2,500 $2,500 $2,500 

PDO to truck $31,667 $53,333 $25,000 $25,000 

Total $34,167 $55,833 $27,500 $27,500 

3.2.7 Legal Costs 

According to initial information collected from attorney, insurer, and carrier interviews, and 

separately verified by three transportation attorneys interviewed as part of this analysis, legal 

costs relating to court costs, attorney fees, and out-of-pocket settlements typically vary 

considerably, depending on negligence, and on the type and severity of the crash. 

The legal fees cost category included crash reconstruction costs, expert witness fees, and fees 

paid to attorneys. The court costs include legal filing fees, court reporter fees, deposition fees, 

and other miscellaneous costs relating to filing or completing litigation. These average costs are 

shown in Table 13 through Table 16 for each type of crash addressed by LDWS. 

Table 13. Average Legal Fees and Court Costs per SVRD Collision Crash 

Cost Category PDO Crash Injury Crash Fatal Crash 

Legal Fees $20,000 $40,000 $150,000 

Court Costs $20,000 $20,000 $20,000 

Total $40,000 $60,000 $170,000 

Table 14. Average Legal Fees and Court Costs per SVRD Rollover Crash 

Cost Category PDO Crash Injury Crash Fatal Crash 

Legal Fees $20,000 $25,000 $100,000 

Court Costs $10,000 $10,000 $10,000 

Total $30,000 $35,000 $110,000 

16 
Table 15. Average Legal Fees and Court Costs per ODLD and SDLD Sideswipe Crash 

Cost Category PDO Crash Injury Crash Fatal Crash 

Legal Fees $15,000 $25,000 $100,000 

Court Costs $20,000 $20,000 $20,000 

Total $35,000 $45,000 $120,000 

Table 16. Average Legal Fees and Court Costs per Head-on Crash 

Cost Category PDO Crash Injury Crash Fatal Crash 

Legal Fees $20,000 $25,000 $100,000 

Court Costs $20,000 $20,000 $20,000 

Total $40,000 $45,000 $120,000 

The out-of-pocket settlement costs are expenses paid to claimants, including punitive and 

compensatory damages. The median settlement cost per fatality is $700,000. The average 

settlement cost per injury is $10,000 for sideswipe crashes, $167,500 for rollovers, $120,000 for 

roadway departure crashes, and $93,000 for head-on crashes. 

For this analysis, the costs per injury or fatality depended on the average number of injuries and 

fatalities in crashes preventable by the LDWS. GES data provided the numbers of injuries and 

fatalities in the crashes preventable by the LDWS, which were used to calculate the average 

number of injuries in injury crashes and the average number of injuries and fatalities in a fatal 

crash. Table 17 presents these results. A detailed summary of the numbers of injuries and 

fatalities per year in these crashes is provided in Appendix A. 

Table 17. Average Annual Numbers of Injuries and Fatalities per Crash, 2001–2005 

Crash Type 

Number of 

Crashes 

Number of 

Injuries in 

Crashes 

Number of 

Injuries 

per Crash 

Number of 

Fatalities 

in Crashes 

Number of 

Fatalities 

per Crash 

Injury SVRD Collisions 982 1,087 1.1 N/A N/A 

Injury SVRD Rollovers 1,430 1,630 1.1 N/A N/A 

Injury SDLD Sideswipes 562 640 1.1 N/A N/A 

Injury ODLD Sideswipes 557 761 1.4 N/A N/A 

Injury ODLD Head-ons 95 132 1.4 N/A N/A 

Fatal SVRD Collisions 64 8 0.1 81 1.3 

Fatal SVRD Rollovers 38 0 0.0 38 1.0 

Fatal SDLD Sideswipes 2 0 0.0 2 1.0 

Fatal ODLD Sideswipes 37 40 1.1 38 1.0 

Fatal ODLD Head-ons 63 103 1.6 63 1.0 

17 
Table 18 through Table 22 show the average cost per injury crash and per fatality crash involving 

a crash preventable by the LDWS. These results were obtained by multiplying the annual 

average numbers of fatalities and/or injuries per crash type in Table 17 by the respective 

settlement costs for one fatality and one injury for sideswipes, rollovers, roadway departures, and 

head-ons. 

Table 18. Average Settlement Costs per Injury and Fatal SVRD Collision Crash 

Cost Category Injury Crash Fatal Crash 

Out-of-Pocket Costs per Injury $132,000 $12,000 

Out-of-Pocket per Fatality N/A $910,000 

Total $132,000 $922,000 

Table 19. Average Settlement Costs per Injury and Fatal SVRD Rollover Crash 

Cost Category Injury Crash Fatal Crash 

Out-of-Pocket Costs Per Injury $184,250 $0 

Out-of-Pocket per Fatality N/A $700,000 

Total $184,250 $700,000 

Table 20. Average Settlement Costs per Injury and Fatal SDLD Sideswipe Crash 

Cost Category Injury Crash Fatal Crash 

Out-of-Pocket Costs Per Injury $11,000 $0 

Out-of-Pocket per Fatality N/A $700,000 

Total $11,000 $700,000 

Table 21. Average Settlement Costs per Injury and Fatal ODLD Sideswipe Crash 

Cost Category Injury Crash Fatal Crash 

Out-of-Pocket Costs Per Injury $14,000 $11,000 

Out-of-Pocket per Fatality N/A $700,000 

Total $14,000 $711,000 

Table 22. Average Settlement Costs per Injury and Fatal Head-on Crash 

Cost Category Injury Crash Fatal Crash 

Out-of-Pocket Costs Per Injury $130,200 $148,800 

Out-of-Pocket per Fatality N/A $700,000 

Total $130,200 $848,800 

18 
19 

3.2.8 Summary of Total PDO Crash, Injury Crash, and Fatal Crash Costs 

Based on the average cost estimates from the previous subsections, Table 23 summarizes the 

major crash costs, which could have been avoided through the use of LDWS. These costs are 

based on a typical or average incident; therefore, they should be interpreted as approximations of 

typical expected values. 
Table 23. Cost Estimates per Crash by Crash Type and Crash Severity for Lane Departure Cras

Crash Type and Severity 

Labor and 

Workers’ 

Comp. 

Operational Environ- mental Property Damage Legal Settlement Court Cost

and Other Legal Fees 

PDO SVRD Collisions N/A $28,950 $35,000 $34,167 N/A $40,000 Injury SVRD Collisions $62,755 $28,950 $35,000 $34,167 $132,000 $60,000 Fatal SVRD Collisions $62,755 $28,950 $35,000 $34,167 $922,000 $170,000 PDO SVRD Rollovers N/A $28,625 $82,500 $55,833 N/A $30,000 Injury SVRD Rollovers $69,728 $28,625 $82,500 $55,833 $184,250 $35,000 Fatal SVRD Rollovers $69,728 $28,625 $82,500 $55,833 $700,000 $110,000 PDO SVRD Head-ons N/A $13,650 $24,000 $27,500 N/A $40,000 Injury SVRD Head-ons $6,973 $13,650 $24,000 $27,500 $130,200 $45,000 Fatal SVRD Head-ons $20,918 $13,650 $24,000 $27,500 $848,800 $120,000 PDO SDLD Sideswipes N/A $13,650 $24,000 $27,500 N/A $35,000 Injury SDLD Sideswipes $13,946 $13,650 $24,000 $27,500 $11,000 $45,000 Fatal SDLD Sideswipes $0 $13,650 $24,000 $27,500 $700,000 $120,000 PDO ODLD Sideswipes N/A $13,650 $24,000 $27,500 N/A $35,000 Injury ODLD Sideswipes $13,946 $13,650 $24,000 $27,500 $14,000 $45,000 Fatal ODLD Sideswipes $0 $13,650 $24,000 $27,500 $711,000 $120,000 

20 
This analysis is based on the assumption that these crash costs would be incurred by motor 

carriers which have deductibles at the total crash cost level or are self-insured. By Code of 

Federal Regulations requirements (49 CFR 387), all motor carriers must, at minimum, either 

insure their equipment for crash liability and cargo damage or demonstrate the financial capacity 

to cover liability and cargo damage costs for all of their trucks (USDOT 2001). FMCSA will 

consider and approve, subject to appropriate and reasonable conditions, the application of a 

motor carrier to qualify as a self–insurer, if the carrier furnishes a true and accurate statement of 

its financial condition and other evidence that establishes to the satisfaction of the FMCSA the 

motor carrier’s ability to satisfy its obligation for coverage of bodily injury liability, property 

damage liability, and/or cargo liability. In the case of a crash, it is likely that a self-insured 

carrier would assume all of the costs summarized in Table 23. 

For a carrier that is insured through an insurance company, the carrier would pay its deductible, 

and the insurance company would then cover most of these costs up to the policy limit. The 

median deductible provided by the insurance industry representatives for a liability and cargo 

damage insurance policy for medium-sized to large fleets was $50,000. Within the trucking 

industry, larger carriers typically have larger insurance deductibles. As a result, many large 

carriers choose to become self-insured at high values ranging from $150,000 to $5 million. 

Generally, smaller carriers have lower deductibles—typically lower than the estimated median 

value of $50,000. In addition, new carriers often have deductibles of less than $10,000 and pay 

higher insurance premiums, because the insurance companies do not have the standard three to 

five years’ worth of historic safety and operating information to determine experience ratings 

and premium rates. 

Due to the high cost of truck crashes, major truck insurance providers and various truck fleets 

indicated that paying premiums is a significant business expense that most fleets would like to 

reduce. However, it should be noted that it is difficult to attribute a standardized premium 

increase directly to a single crash, since insurance calculations are based on sophisticated 

insurance metrics, such as “experience rating” and “loss-pick” formulas, which consider multiple 

factors including safety history, crash severity, convictions, carrier size, and safety culture. Some 

interviewed carriers stated that they have experienced increases in premiums of approximately 8 

to 15 percent annually—independent of crash history. 

3.3 STEP 3: ESTIMATE CRASH COSTS BASED ON VEHICLE MILES 

TRAVELED AND EXPECTED CRASH REDUCTION 

While Step 1 provides information on the numbers of truck crashes preventable by LDWS, and 

Step 2 provides estimates of the costs of those crashes, motor carriers ultimately need to know 

the crash cost savings that they can expect from the use of the LDWS. As a result, Step 3 

involves estimating crash avoidance costs based on vehicle miles traveled and expected crash 

reduction from deploying LDWS. 

The average annual truck VMT can vary dramatically depending on the motor carrier’s 

operations. As the average VMT per truck increases, the likelihood of a truck being involved in a 

crash will increase as well, due to increased exposure. To take into account the variances in the 

21 
average VMTs traveled by carriers in different operating conditions, the crash costs were 

calculated for annual VMT values of 80,000, 100,000, 120,000, 140,000, and 160,000 miles. 

To determine the costs of crashes preventable by LDWS for the various annual VMT values 

shown in Table 24 and Table 25, the first step was to divide the estimated mean annual number 

of crashes preventable by LDWS from Tables 2 and 3 by the mean annual total number of 

vehicle miles traveled (VMT) of large trucks in the United States of 217,488 million miles, as 

reported in Table VM-1 of the Federal Highway Statistics Publications from 2001 to 2005 

(Federal Highway Administration 2001–2005). The resulting values were multiplied by annual 

VMT values of 80,000, 100,000, 120,000, 140,000, and 160,000 miles. The total values in 

Tables 24 and 25 provide an estimate of the crash costs that can be avoided through the use of 

LDWS at the low and high efficacy rates and VMTs. The resulting expected total costs are the 

sum of the probability of each possible outcome of the crashes preventable by LDWS multiplied 

by its estimated cost. Each total cost value represents the average annual amount one “expects” 

as the cost of the crash per vehicle at a different average VMT, with identical odds repeated 

many times for each VMT category. 

Table 24. LDWS: Average Annual Crash Costs per Crash Avoided for 

an Average Annual VMT at Low Efficacy Rates 

Crash Type and 

Severity 

80,000 

VMT 

100,000

VMT 

120,000 

VMT 

140,000 

VMT 

160,000

VMT 

PDO SVRD Collisions $42 $53 $63 $74 $84 

Injury SVRD Collisions $29 $37 $44 $51 $59 

Fatal SVRD Collisions $7 $9 $10 $12 $14 

PDO SVRD Rollovers $20 $25 $30 $35 $40 

Injury SVRD Rollovers $58 $72 $86 $101 $115 

Fatal SVRD Rollovers $3 $4 $5 $6 $7 

PDO SDLD Sideswipes $36 $45 $54 $63 $72 

Injury SDLD Sideswipes $6 $8 $10 $11 $13 

Fatal SDLD Sideswipes $0 $0 $0 $0 $0 

PDO ODLD Sideswipes $32 $40 $48 $55 $63 

Injury ODLD Sideswipes $7 $8 $10 $11 $13 

Fatal ODLD Sideswipes $3 $4 $4 $5 $6 

PDO SVRD Head-ons $1 $1 $1 $2 $2 

Injury SVRD Head-ons $2 $3 $3 $4 $4 

Fatal SVRD Head-ons $5 $7 $8 $10 $11 

Total Cost $251 $314 $377 $440 $503 

*Total Cost may not be equal to the summation of numbers shown for PDO, Injury, and Fatal due to 

 independent rounding. 

22 
23 

Table 25. LDWS: Average Annual Crash Costs per Crash Avoided for 

an Average Annual VMT at High Efficacy Rates 

Crash Type and 

Severity 

80,000 

VMT 

100,000

VMT 

120,000 

VMT 

140,000 

VMT 

160,000

VMT 

PDO SVRD Collisions $97 $121 $145 $170 $194 

Injury SVRD Collisions $67 $84 $101 $118 $135 

Fatal SVRD Collisions $16 $20 $24 $27 $31 

PDO SVRD Rollovers $42 $52 $62 $73 $83 

Injury SVRD Rollovers $120 $150 $180 $210 $240 

Fatal SVRD Rollovers $7 $9 $11 $13 $15 

PDO SDLD Sideswipes $72 $90 $108 $127 $145 

Injury SDLD Sideswipes $13 $16 $19 $23 $26 

Fatal SDLD Sideswipes $0 $0 $0 $1 $1 

PDO ODLD Sideswipes $63 $79 $95 $111 $127 

Injury ODLD Sideswipes $13 $16 $20 $23 $26 

Fatal ODLD Sideswipes $6 $7 $8 $10 $11 

PDO SVRD Head-ons $2 $2 $3 $3 $3 

Injury SVRD Head-ons $4 $5 $6 $7 $8 

Fatal SVRD Head-ons $11 $14 $17 $20 $23 

Total Cost $533 $667 $800 $933 $1,067 

*Total Cost may not be equal to the summation of numbers shown for PDO, Injury, and Fatal due to 

 independent rounding. 
4. COST CALCULATIONS 

This section presents the fourth step in the benefit-cost analysis to determine the costs of 

purchasing and deploying LDWS. The technology and deployment cost estimates for LDWS 

include the technology purchasing price, as well as the costs for installation, maintenance, and 

training drivers in the use of the technology. These costs considered purchases of the technology 

both with and without financing. 

4.1 STEP 4: ESTIMATE THE TECHNOLOGY AND DEPLOYMENT COSTS 

Deployment costs include the cost of purchasing and installing LDWS. Based on input from 

LDWS suppliers and truck fleets that have acquired LDWS, current deployment costs vary based 

on the number of units purchased. According to one LDWS supplier, per-unit prices for 

“moderate volume” purchases are about $1,000. The Mack FOT evaluation report included 

estimates of less than $1,000 for large-volume purchases and from $1,000 to $1,500 for purchase 

and installation of a single aftermarket LDWS—estimates which coincided with information 

from carriers that have purchased these systems. For retrofitted LDWS, the approximate 

installation time is less than 90 minutes. Suppliers contacted for this study indicated little 

difference in cost between an aftermarket purchase of LDWS and an OEM-specified LDWS. The 

estimated cost of the LDWS for this analysis was estimated to be approximately $1,000. 

These costs are based on the assumption that the motor carrier has the cash available to pay the 

upfront cost of the technology. If a motor carrier finances the purchase of the technology, the 

costs will increase, as shown in Table 26. These calculations are based on an average interest rate 

of 6.38 percent, as determined from motor carrier and banking industry interviews, and generally 

reflect a loan period of three years. 

Table 26. Cost of LDWS, if Financed 

Book Price Year 1 Year 2 Year 3 Total 

$1,000 $367.13 $367.13 $367.13 $1,101.39 

It is noteworthy that motor carriers derive Federal tax savings from the depreciation of the 

equipment. To determine the tax savings, a tax rate of 35 percent was used (the approximate tax 

rate for the highest brackets for both C Corporations and S Corporations ). ∗ †

∗

 A C Corporation is any major corporation that is taxed under Subchapter C of the Internal Revenue Code. The income of a C Corporation is 

subject to Federal income tax. 

†

 An S Corporation is any corporation that is taxed under Subchapter S of the Internal Revenue Code. An S Corporation pays no Federal income 

taxes on profits, but instead each shareholder pays an income tax on his or her particular profits. 

 LDWSs installed by 

the OEM are considered to be part of the truck cab. Consequently, the technology is also subject 

to the Federal Excise Tax, and a depreciable life of three years was used to determine the tax 

savings as shown in Table 27 (Internal Revenue Service 2007). The Modified Accelerated Cost 

Recovery System (MACRS) is the current method of accelerated asset depreciation required by 

the United States income tax code. Each MACRS class has a predetermined schedule, which 

determines the percentage of the asset’s cost which is depreciated each year. The General 

Depreciation Class for a three-year recovery period was used to determine the depreciation of the 

 

24 
25 

LDWS. The cost of the system was multiplied by the MACRS rate for each year to determine the 

depreciation. Then this value was multiplied by the tax rate of 35 percent to determine the 

Federal tax savings. 

Table 27. Federal Tax Savings due to Depreciation of LDWS 

Year 1 Year 2 Year 3 Year 4 Year 5 

-$116.66 -$155.58 -$51.84 -$25.94 $0.00 

Direct driver training was assumed to be the cost for a one-time training session (per driver) of 

one hour at a carrier cost of $23—an estimate of the average wage for a driver plus fringe 

benefits. It was estimated that the training will be provided annually, because of the high driver 

turnover rate in the trucking industry. Interviews with motor carriers have confirmed that one 

hour is the amount of time typically spent training a driver. The costs of trainers, manuals, and 

other training materials were excluded, since they may be part of a carrier’s typical training 

budget, or may be provided by the system vendors. 

Motor carriers reported in interviews that maintenance was minimal and did not incur significant 

costs unless a windshield was damaged and the LDWS camera needed to be reinstalled on the 

new windshield. As a result of these findings, maintenance costs were determined to be 

negligible. As shown in Table 28, the total costs of the technology, plus the added training costs 

and minus the Federal tax savings, are provided for both the financed and non-financed purchase 

options. 

Table 28. Total Costs of Technology Deployment with and without Financing 

Technology Year 1 Year 2 Year 3 Year 4 Year 5 Total* 

LDWS $906.35 -$132.58 -$28.84 -$2.94 $23.00 $765.00 

LDWS (financed) $273.48 $234.56 $338.30 -$2.94 $23.00 $866.40 

*Total Cost may not be equal to the summation of numbers shown for each year, due to independent rounding. 
5. BENEFIT-COST ANALYSIS CALCULATIONS 

This section presents an overview of the benefit-cost analysis calculations. Specifically, the 

benefits in terms of crash cost avoidance were compared to the costs in terms of total technology 

costs. 

5.1 STEP 5: CALCULATE NET PRESENT VALUES OF BENEFITS AND COSTS 

The present values of the LDWS were computed by discounting future benefits and costs for the 

values in Steps 3 and 4, using discount rates of 3 and 7 percent over a five-year period (Office of 

Management and Budget 1992). Discounting benefits and costs transforms gains and losses 

occurring in different time periods to a common unit of measurement. Economic conditions and 

externalities dictate which rate is most appropriate for calculating benefits. The higher the 

discount rate, the lower the present value of future cash flows. For typical investments, with 

costs concentrated in early periods and benefits following in later periods, raising the discount 

rate tends to reduce the net present value. The discounted benefits of the LDWS are shown in 

Table 29 and 

Table 30 at the low and high efficacy rates. The discounted cost of the LDWS is shown in Table 

31. 

Table 29. Present Value of the Benefits of LDWS at 

Low Efficacy Rates Using 3% and 7% Discount Rates 

Average VMT 3% 7% 

80,000 $1,150.82 $1,030.32 

100,000 $1,438.52 $1,287.90 

120,000 $1,726.22 $1,545.48 

140,000 $2,013.93 $1,803.06 

160,000 $2,301.63 $2,060.64 

Table 30. Present Value of the Benefits of LDWS at 

High Efficacy Rates Using 3% and 7% Discount Rates 

Average VMT 3% 7% 

80,000 $2,442.50 $2,186.76 

100,000 $3,053.13 $2,733.45 

120,000 $3,663.75 $3,280.14 

140,000 $4,274.38 $3,826.84 

160,000 $4,885.00 $4,373.53 

26 
Table 31. Present Value of the Costs of 

LDWS Using 3% and 7% Discount Rates 

No 

Financing 

and 3% 

No 

Financing 

and 7% 

Financing 

and 3% 

Financing 

and 7% 

$745.83 $721.88 $813.43 $750.77 

When the anticipated costs and benefits of the LDWS are compared, the benefits of using the 

system over a period of five years outweigh the costs associated with purchasing the systems at 

each efficacy rate and for each VMT category. For every dollar spent, carriers received more 

than a dollar back in benefits that could be quantified for this analysis. To demonstrate this 

effect, Table 32 and Table 33 present the average benefits a motor carrier could expect to receive 

for each dollar invested in LDWS. 

Table 32. Anticipated Benefits per Dollar Spent for Purchasing LDWS, without Financing 

Average VMT 

3% Discount 

Rate— 

Low Efficacy 

3% Discount 

Rate— 

High Efficacy 

7% Discount 

Rate— 

Low Efficacy 

7% Discount 

Rate— 

High Efficacy 

80,000 $1.54 $3.27 $1.43 $3.03 

100,000 $1.93 $4.09 $1.78 $3.79 

120,000 $2.31 $4.91 $2.14 $4.54 

140,000 $2.70 $5.73 $2.50 $5.30 

160,000 $3.09 $6.55 $2.85 $6.06 

Table 33. Anticipated Benefits per Dollar Spent for Purchasing LDWS, with Financing 

Average VMT 

3% Discount 

Rate— 

Low Efficacy 

3% Discount 

Rate— 

High Efficacy 

7% Discount 

Rate— 

Low Efficacy 

7% Discount 

Rate— 

High Efficacy 

80,000 $1.41 $3.00 $1.37 $2.91 

100,000 $1.77 $3.75 $1.72 $3.64 

120,000 $2.12 $4.50 $2.06 $4.37 

140,000 $2.48 $5.25 $2.40 $5.10 

160,000 $2.83 $6.01 $2.74 $5.83 

5.1.1 Payback Periods 

Payback periods were calculated to determine the length of time required to recover the initial 

investments made for the LDWS. Although the motor carrier can expect to reap a return on 

investment by purchasing the technology, the amount of time it will take for the motor carrier to 

realize the positive benefits after purchasing the system varies according to the average VMT per 

truck and the type of the technology. Shorter payback periods reflect less funding risk. The 

27 
payback period does not address the time value of money, nor does it go beyond the initial 

recovery of the investment. The formula is: 

PaybackPeriod

AnnualCashInflow = SystemCost

For example, with the cost of $765 for the LDWS and the expected to return of $533 annually 

for a VMT of 80,000 at the high efficacy rate, the payback period would be $765 divided by 

$533, which equals 1.43 years or about 17 months. 

The payback periods are shown in Table 34. In all cases, motor carriers with costs similar to 

those assumed for this analysis can expect a payback period well within the anticipated lifetime 

of the technology. 

Table 34. Payback Period in Months 

VMT Low Efficacy High Efficacy 

80,000 37 17 

100,000 29 14 

120,000 24 11 

140,000 21 10 

160,000 18 9 

5.1.2 Indirect Costs 

The previous sections provide information about the direct costs of preventable crashes that 

could be reasonably quantified; however, decisions relating to the purchase of the LDWS should 

also include the consideration of indirect costs. 

To gain a broader understanding of the importance of all crash costs to motor carriers, a survey 

questionnaire was delivered to motor carrier members of the Commercial Vehicle Safety 

Alliance (CVSA), the American Trucking Associations (ATA), and select affiliated state 

trucking associations. In all, 56 motor carriers responded to the questionnaire. The respondents 

represented a broad range of motor carrier fleet sizes, operational types, and characteristics. 

Although the distribution of respondents by demographic factors did not necessarily replicate the 

statistical distributions of the motor carrier industry, the respondents represented a distribution of 

carrier types sufficiently broad to make it an adequate sample from which to infer motor carrier 

perceptions. 

The motor carriers were asked to rate the importance to their companies of each of 21 crash 

impacts presented in a list using a scale of 1 to 5, with 1 being “Not Very Significant” and 5 

being “Very Significant.” Table 35 presents the ranking of crash cost importance based on the 

value of the responses. 

28 
These results showed that the first 12 top-ranked crash cost areas included indirect costs, such as 

impacts on insurance costs, public image, and employee morale, as true impacts to carriers. The 

fact that LDWSs have the potential to address these important indirect costs can add to the 

benefits of purchasing these systems. 

Table 35. Motor Carrier Perceptions of Crash Cost Importance 

Crash Impact 

Rank Based on 

Mean Importance 

Mean Perception of 

Crash Cost Importance

Impact on liability insurance rates 1 4.59 

Equipment and property damage 2 4.50 

Cost of replacing drivers 3 4.45 

Impact on Federal safety rating 4 4.37 

Crash-related legal expenses 5 4.29 

Impact on Workers’ Compensation rates 6 4.25 

Impact on medical insurance costs 7 4.21 

Loss of customer goodwill and/or business 8 4.15 

Impact on public image 9 4.13 

Environmental clean-up costs 10 4.06 

Cargo damage/loss 11 4.04 

Impact on employee morale 12 4.04 

Reimbursement of emergency response costs 13 3.85 

Cost of management time spent on crash settlement 14 3.74 

Liability from automated data collection via 

technology 

16 3.73 

Cost of off-loading cargo and transport by relief 

vehicle 

15 3.73 

Cost of towing/recovering damaged vehicle 17 3.70 

Cost of accident investigation 18 3.66 

Crash-related fines 19 3.64 

Crash-related administrative costs 20 3.42 

Shipping penalties 21 3.12 

29 
30 

5.2 STEP 6: SENSITIVITY ANALYSIS 

Certain industry segments will experience different costs and benefits due to differences in 

operating practices. The costs and benefits for these industry segments may fall outside the 

normal scope of carrier operations and assumptions used for the crash cost estimates in Step 2. 

This sensitivity analysis was included to provide some context for small carriers, since this BCA 

overall assessment uses economic assumptions that may be more pertinent to medium-sized and 

large carriers. However, FMCSA and ATRI are presently undertaking a separate OSS assessment 

focusing on the unique issues and economics of small carriers. Finally, this Step 6 sensitivity 

analysis can also be applied to high-value cargo carriers.

5.2.1 Small Carriers 

It is important to consider small carriers separately from large carriers because of discrete 

differences in their financial and operating environments. For instance, small carriers are 

unlikely to be self-insured; therefore, out-of-pocket costs per crash will initially be much lower 

for small carriers. The median deductible for a motor carrier will fall near the low end of the 

$5,000–$50,000 range. Assuming that the probability that a small carrier will be involved in a 

crash is the same as in the original analysis, the estimated costs of a rollover crash with the 

insurance deductibles of $50,000 and $5,000 are shown in Table 36 and Table 37, respectively. 

Also, this cost estimate uses approximately 10 percent of the Workers’ Compensation costs that 

may be borne by typical insured motor carriers. Other costs that were assumed to be directly 

covered by small carriers (that is, not covered by insurance policies) included driver replacement 

costs and the operational costs for cargo delivery delays; loading and unloading cargo; towing, 

inventory, and storage; and miscellaneous costs. Environmental costs were also assumed to be 

carrier out-of-pocket costs not covered by insurance. 
Table 36. Cost Estimates per Crash by Crash Type and Crash Severity for Lane Departure Crashes with Insurance 

Crash Type and 

Severity 

Driver 

Replacement Workers’ Comp. 

Operational: 

Cargo and 

Delivery 

Delays 

Operational: 

Loading and 

Unloading 

Cargo 

Operational: 

Towing, 

Inventory, 

and Storage 

Operational: 

Misc. Environ

mental 

PDO SVRD Collisions N/A N/A $800 $2,000 $8,250 $400 $35,000 Injury SVRD Collisions $6,300 $5,645 $800 $2,000 $8,250 $400 $35,000 Fatal SVRD Collisions $6,300 $5,645 $800 $2,000 $8,250 $400 $35,000 PDO SVRD Rollovers N/A N/A $2,875 $1,850 $8,500 $400 $82,500 Injury SVRD Rollovers $7,000 $6,273 $2,875 $1,850 $8,500 $400 $82,500 Fatal SVRD Rollovers $7,000 $6,273 $2,875 $1,850 $8,500 $400 $82,500 PDO SVRD Head-ons N/A N/A $750 $2,500 $5,000 $400 $24,000 Injury SVRD Head-ons $700 $627 $750 $2,500 $5,000 $400 $24,000 Fatal SVRD Head-ons $2,100 $1,820 $750 $2,500 $5,000 $400 $24,000 PDO SDLD Sideswipes N/A N/A $750 $2,500 $5,000 $400 $24,000 Injury SDLD Sideswipes $1,400 $1,255 $750 $2,500 $5,000 $400 $24,000 Fatal SDLD Sideswipes $0 $0 $750 $2,500 $5,000 $400 $24,000 PDO ODLD Sideswipes N/A N/A $750 $2,500 $5,000 $400 $24,000 Injury ODLD Sideswipes $1,400 $1,255 $750 $2,500 $5,000 $400 $24,000 Fatal ODLD Sideswipes $0 $0 $750 $2,500 $5,000 $400 $24,000 

31 
32 

Table 37. Cost Estimates per Crash by Crash Type and Crash Severity for Lane Departure Crashes with Insurance 

Crash Type and 

Severity 

Driver 

Replacement Workers’ Comp. 

Operational: 

Cargo and 

Delivery 

Delays 

Operational: 

Loading and 

Unloading 

Cargo 

Operational: 

Towing, 

Inventory, 

and Storage 

Operational: 

Misc. Environ

mental 

PDO SVRD Collisions N/A N/A $800 $2,000 $8,250 $400 $35,000 Injury SVRD Collisions $6,300 $5,645 $800 $2,000 $8,250 $400 $35,000 Fatal SVRD Collisions $6,300 $5,645 $800 $2,000 $8,250 $400 $35,000 PDO SVRD Rollovers N/A N/A $2,875 $1,850 $8,500 $400 $82,500 Injury SVRD Rollovers $7,000 $6,273 $2,875 $1,850 $8,500 $400 $82,500 Fatal SVRD Rollovers $7,000 $6,273 $2,875 $1,850 $8,500 $400 $82,500 PDO SVRD Head-ons N/A N/A $750 $2,500 $5,000 $400 $24,000 Injury SVRD Head-ons $700 $627 $750 $2,500 $5,000 $400 $24,000 Fatal SVRD Head-ons $2,100 $1,820 $750 $2,500 $5,000 $400 $24,000 PDO SDLD Sideswipes N/A N/A $750 $2,500 $5,000 $400 $24,000 Injury SDLD Sideswipes $1,400 $1,255 $750 $2,500 $5,000 $400 $24,000 Fatal SDLD Sideswipes $0 $0 $750 $2,500 $5,000 $400 $24,000 PDO ODLD Sideswipes N/A N/A $750 $2,500 $5,000 $400 $24,000 Injury ODLD Sideswipes $1,400 $1,255 $750 $2,500 $5,000 $400 $24,000 Fatal ODLD Sideswipes $0 $0 $750 $2,500 $5,000 $400 $24,000 
The total values in Table 38 and Table 39 provide an estimate of the expected value of crash 

costs that can be avoided through the use of LDWS at different efficacy rates and at a typical 

VMT of 100,000. The resulting expected total costs are the sum of the probability of each 

possible outcome of the crashes preventable by LDWS multiplied by its estimated cost. 

Table 38. LDWS: Average Annual Crash Costs per Crash Avoided for 

an Average Annual VMT of 100,000 VMT at Low Efficacy Rates 

Deductible PDO Injury Fatal Total Cost* 

$5,000 $65 $30 $1 $96 

$50,000 $126 $47 $2 $176 

*Total Cost may not be equal to the summation of numbers shown for PDO, Injury, 

and Fatal, due to independent rounding. 

Table 39. LDWS: Average Annual Crash Costs per Crash Avoided for 

an Average Annual VMT of 100,000 VMT at High Efficacy Rates 

Deductible PDO Injury Fatal Total Cost 

$5,000 $136 $63 $3 $202 

$50,000 $265 $100 $5 $370 

After determining the net present values of the costs and benefits of LDWS, the anticipated 

benefits for purchasing the LDWS per dollar spent were calculated for 100,000 VMT; they are 

shown below in Table 40 and Table 41. It was assumed that most small carriers would finance 

the purchase of the technology; therefore, the present value of the financed costs of LDWS at 3 

percent and 7 percent from Table 31 were used to determine the results. 

Table 40. Anticipated Benefits per Dollar Spent for Purchasing LDWS per Crash 

Avoided for an Average Annual VMT of 100,000 VMT, 3% Discount Rate with Financing 

Deductible Low Efficacy High Efficacy 

$5,000 $0.54 $1.14 

$50,000 $0.99 $2.08 

Table 41. Anticipated Benefits per Dollar Spent for Purchasing LDWS per Crash 

Avoided for an Average Annual VMT of 100,000 VMT, 7% Discount Rate with Financing 

Deductible Low Efficacy High Efficacy 

$5,000 $0.52 $1.10 

$50,000 $0.96 $2.02 

Since many lane departure crashes involving large trucks may not include environmental costs, 

the benefits of the LDWS at 3 percent and at 7 percent could be even lower than the values 

shown in Tables 40 and 41 for carriers that are not self-insured. At an annual average 100,000 

VMT, the benefits would range from $0.61 per dollar spent on LDWS at a low efficacy rate to 

33 
34 

$1.32 per dollar spent on LDWS at a high efficacy rate for carriers with a $50,000 deductible, if 

no environmental costs are included in the analyses. 

Based on the overall probability of involvement in the types of crashes preventable by LDWS, a 

small carrier may not reach the level of a dollar or more of benefits for each dollar spent on 

financing the technology over five years. However, an excessive number of crashes in a short 

time period can seriously affect a small carrier’s insurance premiums and deductible levels. As 

the number of crashes increases, so will the insurance costs, until the insurance costs equal or 

exceed the original LDWS investment, or until, eventually, the carrier is dropped by the insurer. 

The formula for such a consequence varies by number of crashes, crash severity, and timeline. 

For this reason, an investment in the technology may still be considered prudent for added 

protection against rising insurance costs. 

When the risk of involvement in a rollover crash is spread over the entire population of motor 

carriers, the benefits may not always exceed the costs for small carriers. However, benefits may 

still exist for small carriers. The overall probability of being involved in an unintended-lanedeparture crash is low, but once it occurs, the costs to the small carrier can increase dramatically. 

According to insurance industry data, for a deductible level of $5,000 per crash, the annual 

premium payment will be approximately $4,000 per power unit. Estimates suggest that as long as 

the average loss per power unit does not exceed 50–65 percent of the total premium payment, the 

annual premium for the motor carrier may not increase. At the $4,000 premium used in this 

discussion, to prevent a rate increase, the average loss per power unit cannot exceed $2,618. 

Insurance companies consider many factors when determining motor carrier premium payments. 

However, if the insurance provider is not able to generate its required return, or experiences a 

loss as a result of covering a particular carrier, it is highly likely that the insurance provider will 

increase the motor carrier’s annual premiums. For example, increasing the $4,000 premium by 

10 percent because of a lane departure crash results in a new annual premium per truck of 

$4,400, an increase of $400 per truck. Over a five-year period, without any further premium 

increases above the $400 per truck, this is an additional cost in premium payments of $2,000 per 

power unit. In contrast, the expected cost associated with financing the LDWS is $866.40. If the 

purchase of this unit prevents a crash that would result in higher insurance premiums, it will save 

a motor carrier nearly $1,133 per power unit over five years. 

Nevertheless, it is recognized that small carriers do not always have the front-end liquidity or 

financial borrowing capacity to invest even in systems that generate a positive ROI. 

5.2.2 High-Value Cargo Carriers 

For high-value cargo carriers, the costs associated with the damage to high-value cargo will be 

greater than the average carrier’s costs. For example, if the cargo damage costs range from 

$50,000 to $1,000,000, instead of an average of $15,000, the total estimated crash costs for 

SVRD rollovers increase by $35,000 and $985,000, respectively, due to operational cost 

changes. The total crash costs accounting for these differences are shown in Table 42 and 

Table 43. 
Table 42. Cost Estimates per Lane Departure Crash by Crash Severity with High-Value Cargo Damages 

Crash Type and Severity 

Labor and 

Workers’ 

Comp. 

Operational Environ- mental Property Damage Legal Settlement Court C

and Ot

Legal F

PDO SVRD Collisions N/A $61,450 $35,000 $34,167 $0 $40,Injury SVRD Collisions $62,755 $61,450 $35,000 $34,167 $132,000 $60,Fatal SVRD Collisions $62,755 $61,450 $35,000 $34,167 $922,000 $170,PDO SVRD Rollovers N/A $63,625 $82,500 $55,833 $0 $30,Injury SVRD Rollovers $69,728 $63,625 $82,500 $55,833 $184,250 $35,Fatal SVRD Rollovers $69,728 $63,625 $82,500 $55,833 $700,000 $110,PDO SVRD Head-ons N/A $58,650 $24,000 $27,500 $0 $40,Injury SVRD Head-ons $6,973 $58,650 $24,000 $27,500 $130,200 $45,Fatal SVRD Head-ons $20,918 $58,650 $24,000 $27,500 $848,800 $120,PDO SDLD Sideswipes N/A $58,650 $24,000 $27,500 $0 $35,Injury SDLD Sideswipes $13,946 $58,650 $24,000 $27,500 $11,000 $45,Fatal SDLD Sideswipes $0 $58,650 $24,000 $27,500 $700,000 $120,PDO ODLD Sideswipes N/A $58,650 $24,000 $27,500 $0 $35,Injury ODLD Sideswipes $13,946 $58,650 $24,000 $27,500 $14,000 $45,Fatal ODLD Sideswipes $0 $58,650 $24,000 $27,500 $711,000 $120,

35 
36 

Table 43. Cost Estimates per Lane Departure Crash by Crash Severity with High-Value Cargo Damages o

Crash Type and Severity 

Labor and 

Workers’ 

Comp. 

Operational Environ- mental Property Damage Legal Settlement Cour

and 

Lega

PDO SVRD Collisions N/A $1,011,450 $35,000 $34,167 $0 $4Injury SVRD Collisions $62,755 $1,011,450 $35,000 $34,167 $132,000 $6Fatal SVRD Collisions $62,755 $1,011,450 $35,000 $34,167 $922,000 $17PDO SVRD Rollovers N/A $1,013,625 $82,500 $55,833 $0 $3Injury SVRD Rollovers $69,728 $1,013,625 $82,500 $55,833 $184,250 $3Fatal SVRD Rollovers $69,728 $1,013,625 $82,500 $55,833 $700,000 $11PDO SVRD Head-ons N/A $1,008,650 $24,000 $27,500 $0 $4Injury SVRD Head-ons $6,973 $1,008,650 $24,000 $27,500 $130,200 $4Fatal SVRD Head-ons $20,918 $1,008,650 $24,000 $27,500 $848,8000 $12PDO SDLD Sideswipes N/A $1,008,650 $24,000 $27,500 $0 $3Injury SDLD Sideswipes $13,946 $1,008,650 $24,000 $27,500 $11,000 $4Fatal SDLD Sideswipes $0 $1,008,650 $24,000 $27,500 $700,000 $12PDO ODLD Sideswipes N/A $1,008,650 $24,000 $27,500 $0 $3Injury ODLD Sideswipes $13,946 $1,008,650 $24,000 $27,500 $14,000 $4Fatal ODLD Sideswipes $0 $1,008,650 $24,000 $27,500 $711,000 $12
Following the same methodology described in the previous sections, the average crash costs for 

high-value cargo carriers are presented below in Table 44 and Table 45. 

Table 44. Anticipated Benefits per Dollar Spent for Purchasing LDWS per Crash 

Avoided for an Average Annual VMT of 100,000 VMT, 3% Discount Rate with Financing 

High-Value Cargo 

Damages Low Efficacy High Efficacy 

$50,000 $2.18 $4.61 

$1,000,000 $11.67 $24.33 

Table 45. Anticipated Benefits per Dollar Spent for Purchasing LDWS per Crash 

Avoided for an Average Annual VMT of 100,000 VMT, 7% Discount Rate with Financing 

High-Value Cargo 

Damages Low Efficacy High Efficacy 

$50,000 $2.11 $4.47 

$1,000,000 $11.32 $23.60 

Since the crash costs are greater for high-value cargo carriers, the benefits that accrue from the 

crash-avoidance technology are greater as well. 

37 
6. FINDINGS AND CONCLUSIONS 

The following findings and conclusions were derived from this economic analysis of LDWS for 

large trucks. 

Using low and high estimates of efficacy rates ranging from 23 percent to 53 percent, it was 

estimated that the LDWS has the potential to prevent approximately 1,069–2,463 SVRD 

collisions, 627–1,307 SVRD rollovers, 1,111–2,223 SDLD sideswipes, 997–1,992 ODLD 

sideswipes, and 59–118 ODLD head-ons. 

Based on the average estimates of typical individual crash costs, the PDO crashes range in cost 

from $100,150–$196,958, injury crashes are in the range of $135,096–$455,936, and fatal 

crashes are in the range of $885,150–$1,252,872. These costs reflect the direct out-of-pocket 

costs for motor carriers that have deductibles at or above crash costs, or are self-insured. 

However, any trucking industry stakeholder that is a party to crash cost calculations or liability—

such as insurers, legal defense firms, or industry suppliers—can use the figures to understand the 

safety impacts of onboard safety systems. 

The cost estimates are based on currently available motor carrier, insurance, and supplier 

information on the actual expenses incurred by the motor carrier industry in crashes that could be 

prevented by the use of LDWS. 

Regardless of the average VMTs traveled, medium to large motor carriers with an average 

likelihood of being involved in a lane departure crash will achieve positive returns on investment 

by purchasing and using LDWS. Based on the cost and crash scenarios used herein, many 

carriers investing in the LDWS will achieve a higher return on investment than those that do not 

invest in the system. 

The sensitivity analysis further demonstrates that even small carriers, which generally will not 

incur the same per-truck crash costs as larger carriers, can realize added benefits related to 

insurance implications if one or more crashes are prevented using LDWS. 

38 
7. REFERENCES 

Federal Highway Administration. (2001–2005). Federal Highway Statistics Publications. Section 

V: Roadway Extent, Characteristics, and Performance, Table VM-1: Vehicle miles of travel 

and related data, by highway category and vehicle type. U.S. Department of Transportation 

[cited 1 June 2008]. Available online: http://www.fhwa.dot.gov/policy/ohpi/hss/hsspubs.htm 

Federal Motor Carrier Safety Administration (FMCSA). (2005). Concept of Operations and 

Voluntary Operational Requirements for Lane Departure Warning Systems (LDWS) 

Onboard Commercial Motor Vehicles [report online]. Report No. FMCSA-MCRR-05-005. 

U.S. Department of Transportation [cited 1 June 2008]. Available online: 

http://www.fmcsa.dot.gov/facts-research/research-technology/report/lane-departure-warningsystems.htm

FMCSA. (2006). Evaluation of the Mack Intelligent Vehicle Initiative Field Operational Test 

Final Report [report online]. Report No. FMCSA-06-016. U.S. Department of Transportation 

[cited 1 June 2008]. Available online: http://www.fmcsa.dot.gov/facts-research/researchtechnology/report/Evaluation-of-the-Mack-Intelligent-Vehicle-Field-Operational-TestSep2006.pdf 

Internal Revenue Service. (2007). How to Depreciate Property. Publication 946. Appendix A. 

MACRS Percentage Table Guide, General Depreciation System (GDS), Table A-1. U.S. 

Department of the Treasury [cited 1 June 2008]. 

Available online: http://www.irs.gov/pub/irs-pdf/p946.pdf 

National Highway Traffic Safety Administration (NHTSA). (2005). National Automotive 

Sampling System: General Estimates System Analytical User’s Manual, 1988–2005 [report 

online]. U.S. Department of Transportation [cited 1 June 2008]. 

Available online: http://www-nrd.nhtsa.dot.gov/Pubs/AUM05.PDF

Office of Management and Budget. (1992). Guidelines and Discount Rates for Benefit-Cost 

Analysis of Federal Programs. OMB Circular A-94. Executive Office of the President [cited 

1 June 2008]. Available online: http://www.whitehouse.gov/omb/circulars/a094/a094.html

Rodriguez, J., Kosir, M., Lantz, B., Griffin, G., & Glatt, J. (2000). The Costs of Truckload 

Driver Turnover. Fargo, North Dakota State University, Upper Great Plains Transportation 

Institute [cited 1 June 2008]. Available online: http://www.ugpti.org/pubs/pdf/SP146.pdf

Short, J., Boyle, L., Shackelford, S., Inderbitzen, B., & Bergoffen, G. (2007). The Role of Safety 

Culture in Preventing Commercial Motor Vehicle Crashes. CTBSSP Synthesis of Safety 

Practice No. 14 [cited 1 June 2008]. 

Available online: http://onlinepubs.trb.org/onlinepubs/ctbssp/ctbssp_syn_14.pdf

U.S. Department of Transportation (USDOT). (2001). Minimum Levels of Financial 

Responsibility for Motor Carriers. Code of Federal Regulations 49 CFR, Part 387 [cited 1 

June 2008]. Available online: http://www.fmcsa.dot.gov/rulesregulations/administration/fmcsr/fmcsrguidedetails.asp?rule_toc=756§ion_toc=756

Wang, J. S., Knipling, R. R., & Blincoe, L. J. (1999). The Dimensions of Motor Vehicle Crash 

Risk. Journal of Transportation and Statistics 2(1):19–43. 

39 

41 

APPENDIX A: DESCRIPTION OF DATA SETS 

National Automotive Sampling System General Estimates System (NASS/GES) 

SOURCES: 

GES Data Files from: 

http://www.nhtsa.dot.gov/portal/site/nhtsa/menuitem.0efe59a360fbaad24ec86e10dba046a0/

GES Analytical Users Manual, 1988–2005 from: 

http://www-nrd.nhtsa.dot.gov/Pubs/AUM05.pdf 

The GES is directed by the National Center for Statistics and Analysis, which is a research and 

development arm of the National Highway Traffic Safety Administration (NHTSA). NHTSA is 

an agency of the U.S. Department of Transportation (USDOT) responsible for reducing injuries 

and fatalities on America’s roadways through education and research on safety standards and 

enforcement activity. The GES sample collects data from GES data collectors in 60 different 

geographic sites across the United States. These data collectors work with approximately 400 

police agencies in these sites; during each visit, the data collectors collect all police traffic 

accident reports (PARs) and then select a sample of these reports. An NHTSA contractor codes 

these reports into data files, while checking for quality, validity, and consistency. According to 

the NASS-GES Analytical User’s Manual, “GES is used to identify highway safety problem 

areas, provide a basis for regulatory and consumer information initiatives, and form the basis for 

cost and benefit analyses of highway safety initiatives.” 

The PARs from which GES data files are coded represent a probability sample of all policereported crashes in the United States. Therefore, once the records of interest within GES are 

isolated, a weight must be applied to calculate estimates of national crash characteristics, 

including items such as the number of crashes of a specific type, or the number of injuries within 

that accident type. This weight is indicated by the “Weight” variable in each GES data file; this 

weight is “the product of the inverse of the probabilities of selection at each of the three stages in 

the sampling process.” 

The main limitation of using GES as a data source is that when looking at extremely specific 

crash types, there is a possibility that a query will return a small number of records, since the 

actual number of crashes that each record represents is given by a weight. 

The data fields and variables that were used in this analysis are presented in Table 46. 
Table 46. GES Fields and Variables Defining Crashes Addressed by LDWS 

Field Name 

Variables for 

SVRD Collisions with 

Fixed Object 

Variables for 

SVRD Rollovers 

Variables for 

SDLD Sideswipes 

Variables for 

ODLD Sideswipes 

Body Type BODY_TYP (V05) 

64—Straight Truck 66—Truck Tractor 78—Unknown 

Medium/Heavy Truck 

64—Straight Truck 66—Truck Tractor 78—Unknown 

Medium/Heavy Truck 

64—Straight Truck 66—Truck Tractor 78—Unknown 

Medium/Heavy Truck 

64—Straight Truck 66—Truck Tractor 78—Unknown 

Medium/Heavy Truck 

Most Harmful Event V_EVENT (V20) 

Not 1 (Rollover/ 

Overturn) 

1—Rollover/Overturn 

Movement Prior to Critical Event P_CRASH1 (V21) 

1—Going Straight 2—Decelerating in 

Traffic Lane 

14—Negotiating a 

Curve 

1—Going Straight 2—Decelerating in 

Traffic Lane 

14—Negotiating a 

Curve 

1—Going Straight 2—Decelerating in 

Traffic Lane 

14—Negotiating a 

Curve 

1—Going Straight 2—Decelerating in 

Traffic Lane 

14—Negotiating a 

Curve 

Accident Type ACC_TYPE (V23) 

1—Right Roadside 

Departure: Drive Off Road 

2—Right Roadside 

Departure: Control/Traction Loss 

6—Left Roadside 

Departure: Drive Off Road 

7—Left Roadside 

Departure: Control/Traction Loss 

1—Right Roadside 

Departure: Drive Off Road 

2—Right Roadside 

Departure: Control/Traction Loss 

6—Left Roadside 

Departure: Drive Off Road 

7—Left Roadside 

Departure: Control/Traction Loss 

44—Sideswipe/Angle: 

Straight Ahead on Left 

45—Sideswipe/Angle: 

Straight Ahead on Right 

46—Sideswipe/Angle: 

Changing Lanes to the Right 

47—Sideswipe/Angle: 

Changing Lanes to the Left 

64—Sideswipe/Angle: 

Lateral Move Left/Right 

42 
43 

Field Name 

Variables for 

SVRD Collisions with 

Fixed Object 

Variables for 

SVRD Rollovers 

Variables for 

SDLD Sideswipes 

Variables for 

ODLD Sideswipes 

Critical Event P_CRASH2 (V26) 

12—Critical Event 

Initiated by This Vehicle Traveling Over Left Edge of Roadway 

13—Critical Event 

Initiated by This Vehicle Traveling Over Right Edge of Roadway 

12—Critical Event 

Initiated by This Vehicle Traveling Over Left Edge of Roadway 

13—Critical Event 

Initiated by This Vehicle Traveling Over Right Edge of Roadway 

10—Critical Event 

Initiated by This Vehicle Traveling Over the Lane Line on the Left Side of the Travel Lane 

11—Critical Event 

Initiated by This Vehicle Traveling Over the Lane Line on the Right Side of the Travel Lane 

10—Critical Event 

Initiated by This Vehicle Traveling Over the Lane Line on the Left Side of the Travel Lane 

11—Critical Event 

Initiated by This Vehicle Traveling Over the Lane Line on the Right Side of the Travel Lane 

Injury Severity INJ_SEV (P09) 

0—No Injury 1—Possible Injury 2—Non-Incapacitating 

Injury 

3—Incapacitating 

Injury 

4—Fatal Injury 5—Injured Severity 

Unknown 

9—Unknown—

[assumed as no injury] 

0—No Injury 1—Possible Injury 2—Non-Incapacitating 

Injury 

3—Incapacitating 

Injury 

4—Fatal Injury 5—Injured Severity 

Unknown 

9—Unknown—

[assumed as no injury] 

0—No Injury 1—Possible Injury 2—Non-Incapacitating 

Injury 

3—Incapacitating 

Injury 

4—Fatal Injury 5—Injured Severity 

Unknown 

9—Unknown—

[assumed as no injury] 

0—No Injury 1—Possible Injury 2—Non-Incapacitating 

Injury 

3—Incapacitating 

Injury 

4—Fatal Injury 5—Injured Severity 

Unknown 

9—Unknown—

[assumed as no injury] 

Person Type PER_TYPE (P3Z) 

1—Driver of a Motor 

Vehicle 

2—Passenger of a 

Motor Vehicle 

9—Unknown Occupant 

1—Driver of a Motor 

Vehicle 

2—Passenger of a 

Motor Vehicle 

9—Unknown Occupant 

1—Driver of a Motor 

Vehicle 

2—Passenger of a 

Motor Vehicle 

9—Unknown Occupant

1—Driver of a Motor 

Vehicle 

2—Passenger of a 

Motor Vehicle 

9—Unknown 

Occupant 
Federal Highway Statistics 

Federal Highway Statistics publications are managed by the Federal Highway Administration’s 

Office of Highway Policy Information. The Highway Statistics Series contains statistical 

information on a variety of highway use topics, including vehicle mileage. The highway data 

analyzed in the Highway Statistics Series are submitted by individual states and analyzed against 

previously submitted data to ensure accuracy. The total number of vehicle miles traveled (VMT) 

for combination and straight trucks in the United States, 217,488 million miles averaged across 

years 2001–2005(Federal Highway Administration 2001–2005), is shown in Table 47. 

Table 47. Average Annual VMT (millions of miles) for Combination Vehicles, 2001–2005 

Truck Type 2001 2002 2003 2004 2005 Average

Combination and Straight Trucks 207,686 214,530 215,884 226,504 222,836 217,488 

44 
APPENDIX B: SUPPORTING DATA 

This appendix contains the annual number of crashes, injuries, and fatalities for lane- departure 

crashes from 2001–2005, as presented in Table 48 through Table 57. A note on all figures: 

Within GES, the weight is often a seven-digit figure, with three numbers after the decimal; 

therefore, the following numbers are rounded. 

Table 48. Annual Number of SVRD Collision PDO, Injury, and Fatal Crashes, 2001–2005 

Crash Type 2001 2002 2003 2004 2005 Average 

Number of PDO Crashes 2,878 4,206 4,177 2,870 3,878 3,602 

Number of Injury Crashes 850 894 1,213 1,102 851 982 

Number of Fatal Crashes 91 60 86 13 69 64 

Table 49. Annual Number of SVRD Rollover PDO, Injury, and Fatal Crashes, 2001–2005 

Crash Type 2001 2002 2003 2004 2005 Average 

Number of PDO Crashes 976 1,415 1,347 1,255 736 1,146 

Number of Injury Crashes 2,289 1,520 706 1,757 874 1,430 

Number of Fatal Crashes 18 103 0 58 10 38 

Table 50. Annual Number of SDLD Sideswipe PDO, Injury, and Fatal Crashes, 2001–2005 

Crash Type 2001 2002 2003 2004 2005 Average 

Number of PDO Crashes 6,444 3,235 5,167 3,275 3,220 4,268 

Number of Injury Crashes 484 980 605 457 286 562 

Number of Fatal Crashes 0 0 0 0 10 2 

Table 51. Annual Number of ODLD Sideswipe PDO, Injury, and Fatal Crashes, 2001–2005 

Crash Type 2001 2002 2003 2004 2005 Average 

Number of PDO Crashes 3,967 5,874 3,822 2,670 2,352 3,737 

Number of Injury Crashes 528 852 478 307 618 557 

Number of Fatal Crashes 2 4 161 12 6 37 

Table 52. Annual Number of ODLD Head-on PDO, Injury, and Fatal Crashes, 2001–2005 

Crash Type 2001 2002 2003 2004 2005 Average 

Number of PDO Crashes 211 16 257 0 4 98 

Number of Injury Crashes 106 12 233 10 112 95 

Number of Fatal Crashes 8 10 95 203 0 63 

45 
46 

Table 53. Annual Number of Injuries and Fatalities in SVRD Collisions, 2001–2005 

Crash Statistic 2001 2002 2003 2004 2005 Average 

Injuries in Injury Crashes 954 1,173 1,236 1,148 924 1,087 

Fatalities in Fatal Crashes 91 60 166 17 69 81 

Injuries in Fatal Crashes 16 23 0 0 0 8 

Number Truck Driver Injuries 732 910 1,192 938 797 914 

Number Truck Driver Fatalities 83 50 86 13 69 60 

Table 54. Annual Number of Injuries and Fatalities in SVRD Rollovers, 2001–2005 

Crash Statistic 2001 2002 2003 2004 2005 Average 

Injuries in Injury Crashes 2,612 1,732 841 2,090 876 1,630 

Fatalities in Fatal Crashes 18 103 0 58 10 38 

Injuries in Fatal Crashes 0 0 0 0 0 0 

Number Truck Driver Injuries 2,277 1,486 611 1,749 867 1,398 

Number Truck Driver Fatalities 18 103 0 58 10 38 

Table 55. Annual Number of Injuries and Fatalities in SDLD Sideswipes, 2001–2005 

Crash Statistic 2001 2002 2003 2004 2005 Average 

Injuries in Injury Crashes 543 1,041 718 557 340 640 

Fatalities in Fatal Crashes 0 0 0 0 10 2 

Injuries in Fatal Crashes 0 0 0 0 0 0 

Number Truck Driver Injuries 10 365 96 14 7 98 

Number Truck Driver Fatalities 0 0 0 0 0 0 

Table 56. Annual Number of Injuries and Fatalities in ODLD Sideswipes, 2001–2005 

Crash Statistic 2001 2002 2003 2004 2005 Average 

Injuries in Injury Crashes 557 1,356 730 365 799 761 

Fatalities in Fatal Crashes 2 8 161 12 6 38 

Injuries in Fatal Crashes 4 4 161 24 9 40 

Number Truck Driver Injuries 54 3 465 22 46 118 

Number Truck Driver Fatalities 2 0 0 0 2 1 

Table 57. Annual Number of Injuries and Fatalities in ODLD Head-ons, 2001–2005 

Crash Statistic 2001 2002 2003 2004 2005 Average 

Injuries in Injury Crashes 117 25 393 10 116 132 

Fatalities in Fatal Crashes 8 10 95 203 0 63 

Injuries in Fatal Crashes 8 30 190 286 0 103 

Number Truck Driver Injuries 0 22 0 44 5 14 

Number Truck Driver Fatalities 8 0 95 0 0 21 
APPENDIX C: COST DATA – 

MOTOR CARRIER QUESTIONNAIRE AND 

RESPONDENT DEMOGRAPHICS 

Part 1: Carrier Interview Guide begins on the next page. 

Part 2: Survey Respondent Demographics follows. 

47 

49 

ATRI is currently working on a trucking industry research initiative to develop a comprehensive 

cost-benefit analysis of select safety technologies, including rollover stability control, forwardlooking radar, and lane departure warning systems. The purpose of this interview is to gather 

real-world information about the costs associated with collisions that could be prevented or 

reduced by these types of technologies.∗

∗

 This information collection is covered by the OMB and Paperwork Reduction Act exemption for ITS-related surveys, questionnaires, and 

interviews defined in Section 5305, Title V, Subtitle C, paragraph (i) (2) of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: 

A Legacy for Users (SAFETEA-LU) of 2005, which states that “Any survey, questionnaire, or interview that the Secretary considers necessary to 

carry out the evaluation of any test or program assessment activity under this subchapter shall not be subject to chapter 35 of title 44.” †

 For this Appendix content, the term “accident” is maintained to preserve the integrity of the actual survey content rendered by ATRI. 

The overall goal is to determine a company’s approximate costs associated with different types 

of accidents—in particular, rollovers, side-swipes, run-off-road, rear-end accidents, and, to a 

lesser extent, jackknife crashes. 

Thank you in advance for your time and support on this important industry research project! 

For each of the following tables, please consider an average accident of each type. Then 

provide the number or extent of incidents, injuries, and average cost(s) for each crash type 

for each metric.†

 
Labor Costs by Collision Type: 

Cost Factors Rollovers Side-Swipes Run-Off-Road Rear-ENumber of accidents. Number of drivers injured (per 100 accidents).Costs Associated with Permanent Injuries to DriverNumber of accidents involving permanent injury. Number of drivers replaced (per 100 accidents). Costs of driver recruitment marketing. Training Costs (i.e., school costs, instructor costs). Testing Costs (i.e., background checks, physicals). Hiring Costs (i.e., bonuses, training and relocation). Orientation costs. Costs Associated with Temporary Injuries to DriverNumber of accidents involving temporary injury. Number of drivers temporarily replaced (per 100 accidents). Costs of recruitment marketing. Training Costs (i.e., school costs, instructor costs). Testing Costs (i.e., background checks, physicals). Recruitment Costs (i.e., bonuses, training and relocation). Orientation costs. 

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1. A recent study placed the average worker replacement costs for all companies at $8,234. Do 

you consider this number reasonable? Yes No 

1a. If no, what estimate would you consider reasonable? 

2. Are there additional labor costs we have not considered? Yes No 

2a. If yes, will you please describe those costs and give estimates? 

Costs Estimates 

3. Do you budget or estimate the cost of driver replacement for the upcoming fiscal or 

calendar year? Yes No 

3a. If yes, can you describe your process and give an estimate? 

4. Can you estimate the wages for relief drivers? Yes No 

4a. If yes, please give an estimate: 

4b. If yes, are they hourly, salary, or paid by the mile? 

Hourly 

 

 Salary By the mile 

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Operational Costs by Collision Type (Indicate “N/A” if not available or applicable): 

Cost Factors Rollovers SideSwipes 

Run-OffRoad Rear-End Jackknife 

Number of accidents involving 

cargo damage (per 100 accidents)

Average cost of cargo damage 

due to accident. 

Avg. cost of secondary cargo 

damage (i.e., rain, exposure to 

weather).

Avg. cost associated with cargo 

delay (i.e., penalties and/or 

reimbursements for late delivery). 

Additional inventory costs for 

storing cargo. 

Any costs associated with 

guarding cargo after accident. 

Avg. cost associated with 

unloading or loading cargo 

(do not include labor costs). 

Miscellaneous operational costs 

(i.e., communications expenses, 

press releases, etc.). 

Emergency supplies relating to 

accident (i.e., flares, fire 

extinguishers, etc.). 

Towing Costs: Tractor 

 Trailer 

5. What are the primary commodity types your company hauls? 

6. How do accident costs vary by the commodity type? 

7. Does your company calculate loss of “goodwill” when considering the costs of an 

accident (including employee goodwill, customer goodwill, and public goodwill)? 

Yes No 

7a. If yes, can you give an estimate and describe how you calculate goodwill costs? 

Estimate: 

Calculation: 

 

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Environmental Costs by Collision Type: 

Cost Factors Rollovers SideSwipes 

Run-OffRoad Rear-End Jackknife 

Number of accidents involving 

environmental impact costs (per 

100 accidents) 

Average cost of fines 

Average out-of-pocket costs for 

cleanup 

8. Does your company incur any environmental costs other than the ones mentioned above? 

Yes No 

8a. If yes, please estimate and describe the type of costs you occur. 

Costs Estimates 

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Insurance Costs by Collision Type: 

Cost Factors Rollovers SideSwipes 

Run-OffRoad Rear-End Jackknife 

Estimates of increased per-truck 

premiums due to each reportable 

accident. 

Estimate of per-accident out-of 

pocket. 

Estimate of per accident out-of 

pocket costs relating to property 

damage (tractor and trailer). 

9. What is your average deductible per vehicle/accident? 

10. Does the deductible vary by type of truck? Yes No 

10a. If yes, can you please describe and give a range for your deductibles by truck type? 

11. Does the deductible vary by driver history? Yes No 

11a. If yes, can you please describe and give a range for your deductibles? 

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55 

Legal Costs by Collision Type (per accident): 

Cost Factors Rollovers SideSwipes 

Run-OffRoad Rear-End Jackknife 

Average court costs. 

Legal fees. 

Average out-of-pocket settlement 

costs. 

12. Are there additional legal expenses we have not considered? Yes No 

12a. If yes, please estimate and describe the type of costs you occur. 

Costs Estimates 

13. Will you please list the average cost of all crashes assuming self-insured? 

PART 2: SURVEY RESPONDENT DEMOGRAPHICS 

Carriers: 

Carrier A: This is a large (1,000+ power units) national tank truck carrier that handles 

bulk commodity shipping operations, providing services to the entire continental United 

States. The fleet primarily consists of tank trailers and a smaller fleet of flat-bed trailers. 

Primary commodities are chemicals and petroleum products. 

Carrier B: This is a mid-sized (100–500 power units) regional truckload carrier that 

operates in the eastern United States and primarily utilizes van trailers. The carrier’s 

principal commodities include general freight and limited HAZMAT. 

Carrier C: This is a small (<100 power units) specialty carrier that provides expedited 

freight services for customers that require high levels of safety and security, with cargo 

types that are extremely hazardous or sensitive in nature. 

Carrier D: This is a large (1,500+ power units) refrigerated carrier with both truckload 

and less-than-truckload operations. Typical commodities hauled include food products, 

medical supplies, and consumer goods. 

Carrier E: This is a very large (8,000+ power unit) transportation company that provides 

truckload services for shippers in the United States, Canada, and Mexico. The carrier 

hauls general commodities with dry vans, and also utilizes flatbeds, specialty, and unsided trailers. The operation is both long- and short-haul. The company relies heavily on 

the use of independent drivers. 

Carrier F: This is a large (1,200+ power units) refrigerated carrier that operates 

throughout the United States, Mexico, and Canada. This carrier primarily hauls food 

products and consumer goods. 

Insurance Companies: 

Insurance Carrier A: This is a large, national insurance company with an emphasis on 

commercial transportation accounts, and is one of the top five trucking industry insurers. 

Insurance Carrier B: This is a large, national insurance company with a large 

diversified portfolio of coverage, which includes many larger trucking industry accounts. 

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Law Firms: 

Law Firm A: This is a regional law firm with multiple locations throughout the Midwest 

employing more than 80 attorneys. The firm specializes in transportation, litigation 

defense, collection services, and intellectual property. 

Law Firm B: This is a law firm located in the Southeast employing more than 20 

attorneys who specialize in litigation and insurance law. 

Law Firm C: This is a national law firm with multiple locations in the Midwest and 

throughout the world employing more than 100 attorneys. The firm specializes in 

litigation, environmental, intellectual property and real estate law. 

Environmental Clean-Up Firms: 

Environmental Cleanup Company A: This is an environmental clean-up firm located 

in the Southeast that specializes in waste removal, roll-off services, and industrial 

cleaning. This firm performs planned and emergency services. 

Environmental Cleanup Company B: This is an environmental clean-up firm with 

multiple locations along the Eastern Seaboard. The firm’s clean-up services range from 

disaster response to spill management. 
APPENDIX D: ACKNOWLEDGMENTS 

The Lane Departure Warning Systems Benefit-Cost Analysis was managed by Ms. Amy Houser 

of the Federal Motor Carrier Safety Administration (FMCSA). The project supports FMCSA’s 

safety goal to reduce the number and severity of large-truck fatalities and crashes by encouraging 

voluntary adoption by motor carriers of promising onboard safety technologies. FMCSA’s 

efforts include an evaluation of the costs and benefits to the motor carrier community of adopting 

the technologies. 

This report provides the analytical framework and findings of the benefit-cost and return on 

investment analyses for lane departure warning systems. A number of subject matter experts and 

industry representatives have provided input to the research process, as well as comments on 

study findings. We would like to thank, and recognize the support provided by the following 

individuals.

Ronald R. Knipling, Ph.D. 

Virginia Tech Transportation Center 

Scott Claffey 

Great West Insurance Company 

Dave Melton 

Liberty Mutual Research Institute for 

Safety 

Anne McCartt, Ph.D. 

Insurance Institute for Highway Safety 

Rick Craig 

Owner-Operator Independent Drivers 

Association 

Bill Gouse 

American Trucking Associations 

Tom Moses 

The Spill Center 

Bob Interbitzen 

National Private Truck Council 

In addition, the expanded analysis was supported by the following individuals, who provided 

considerable assistance in the form of data, analysis, and review:

Steve Olson 

Great West Casualty Corporation 

John Culp 

Maverick Transportation 

Mark Ramsdell 

Larson Allen 

Tracy McDonald 

Praxair 

Skip Yeakel 

Volvo 

Dean Newell 

Maverick 

Don Lacy 

Prime, Inc. 

Bill Elscholtz 

Overnite Express 

Charles Pursley 

Tennessee Express 

Ron Szapacs 

Air Products 

Andrew Boyle 

Boyle Transportation 

Bill Patrolia 

Iteris 

Jerry Waddell 

Cargo Transporters 

John Dickerson 

Hill Bros. 

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