Texting and cell phone use = drunk driving.
It doesn't matter if it's hands-free or not. The error rate's about the same. It's not the mechanics that are the problems, it's the sheer inability of people to truly multitask. You have one focus. It can be on the phone, it can be on traffic. When you shift tasks, you're unloading and reloading memory. This takes time. We're not computers, so we make mistakes. We have to get our bearings--if we're driving, what are the hazards around us, what's our speed, our direction? That takes time.
Somewhere in there you go crash and wonder what it was that hit you, only to find out that you hit something else.
People think they multitask. That's because evaluating your performance is yet another task and if you're already alternating your focus between two tasks and screwing those up, what's the likelihood you'll be able to add a third task and do a good job with that that one to even spot that you're screwing up?
Observers, on the other hand, with nice videocameras and observation sheets have just one focus. Watching those who are doing such a good job multitasking screw up without realizing it or remembering it.