MALVERN, PA — The Insurance Information Institute (Triple-I) released a new analysis estimating that motor vehicle tort cases filed between 2014 and 2023 generated $42.8 billion in excess litigation value nationwide, underscoring how rising legal activity is contributing to higher auto insurance premiums across the U.S.
The study, based on data from the Federal Judicial Center and a curated sample of state court systems, highlights a significant increase in motor vehicle-related lawsuits and warns that incomplete and inconsistent civil court data limits transparency and reform efforts.
Federal Court Trends
- Tort cases rose to 33.8% of all federal civil filings from 2014 to 2023, compared with 18.8% between 1994 and 2003.
- Motor vehicle tort filings grew at a 4.9% compound annual growth rate (CAGR) over the past decade.
- Most federal cases (52.8%) were resolved through settlements, while just 7.4% resulted in formal judgments.
- The excess litigation value of federal motor vehicle torts was estimated at $984.6 million.
State Court Insights
- An estimated 5 million motor vehicle tort cases were filed in state civil courts during the same period.
- Using extrapolated data from 18 states representing 62% of the U.S. population, the study projects $41.8 billion in excess litigation value in state courts alone.
- No-fault insurance states recorded higher average amounts in controversy at $725,000 per case compared with $650,000 elsewhere.
Rising Costs and Insurance Impact
Combined, federal and state filings produced an estimated $42.8 billion in excess tort value, a trend Triple-I warns is putting significant pressure on auto insurance costs nationwide.
“This study highlights how increasing tort litigation, particularly in the motor vehicle sector, is driving up insurance premiums,” said Patrick Schmid, Ph.D., chief insurance officer at Triple-I. “We urgently need standardized, publicly accessible civil case data from all 50 states and Washington D.C. Transparency is essential for understanding and addressing the effects of legal system abuse on both consumers and insurers.”
The findings build on previous Triple-I research with the Casualty Actuarial Society, which estimated that auto liability insurance experienced $118.9 billion in combined economic and social inflation between 2014 and 2023.
Triple-I said the analysis underscores the growing influence of litigation on insurance pricing and calls for reforms aimed at improving data transparency and mitigating legal system abuse.
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