The scientific literature is mixed on the dangers of talking on a cell phone versus those of talking with a passenger. The common conception is that passengers are able to better regulate conversation based on the perceived level of danger, therefore the risk is negligible. A study by a University of South Carolina psychology researcher featured in the journal, Experimental Psychology, found that planning to speak and speaking put far more demands on the brain’s resources than listening. Measurement of attention levels showed that subjects were four times more distracted while preparing to speak or speaking than when they were listening.
The Accident Research Unit at the University of Nottingham found that the number of utterances was usually higher for mobile calls when compared to blindfolded and non-blindfolded passengers across various driving conditions. The number of questions asked averaged slightly higher for mobile phone conversations, although results were not constant across road types and largely influenced by a large number of questions on the urban roads.
A 2004 University of Utah simulation study that compared passenger and cell-phone conversations concluded that the driver performs better when conversing with a passenger because the traffic and driving task become part of the conversation. Drivers holding conversations on cell phones were four times more likely to miss the highway exit than those with passengers, and drivers conversing with passengers showed no statistically significant difference from lone drivers in the simulator.
A study led by Andrew Parkes at the Transport Research Laboratory, also with a driving simulator, concluded that hands-free phone conversations impair driving performance more than other common in-vehicle distractions such as passenger conversations.
http://en.wikipedia.org/wiki/Mobile...#As_compared_to_conversation_with_a_passenger