Auto Litigation Added $43.8 Billion to Insurance Costs
Rising legal activity for motor vehicle accidents has increased liability insurance costs for U.S. households.
Updated on Oct. 13, 2026 in Buying/Selling
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Between 2015 and 2024, motor vehicle litigation added $43.84 billion to auto liability insurance costs across the United States. This surge in legal activity, which includes 6,809 federal tort filings in 2024 alone, has significantly impacted insurance premiums.
Why it matters
Insurance losses have risen because litigation activity is growing faster than the actual frequency of underlying accidents. This trend reflects broader changes in claim severity and the amounts demanded or awarded in court, directly influencing the cost of coverage for drivers.
From 2015 to 2024, motor vehicle tort filings grew by 4.5% annually, with average successful plaintiff judgments reaching $681,000. During this period, $42.77 billion of excess litigation value was recorded in state courts compared to $1.07 billion in federal courts.
The details
Researchers determined that litigation activity is outpacing the frequency of insurance claims, leading to higher system-wide costs. The study used data from 11 states, representing 50.6% of the U.S. population, to extrapolate these figures. Because these legal costs are typically passed down to consumers, the increased volume of settlements and judgments plays a major role in premium adjustments for the average driver.
Timeline
1995-2008 saw tort filings decline at an annual rate of 2.8%.
1995-2004 plaintiff awards averaged $377,000.
2014-2024 saw tort filings increase at a 5% compound annual rate.
2015-2024 litigation added $43.84 billion to insurance costs.
2024 federal motor vehicle tort filings reached 6,809.
The Home Front
Rising legal activity for motor vehicle claims is creating a new baseline for household auto insurance expenses. This trend marks a reversal from the decline in tort filings seen in the late 1990s and 2000s, shifting the economic landscape for vehicle owners today.
Review your auto insurance policy details annually to understand how your coverage limits and premiums are structured. Consult with a licensed insurance agent or broker to ensure you have adequate liability protection in the event of an accident.
The takeaway
The sustained increase in motor vehicle tort filings has become a structural factor in rising insurance costs for households nationwide. To protect your financial health, schedule a periodic review of your insurance policy with a licensed agent to ensure your coverage levels remain appropriate.
Further reading
For more on managing vehicle expenses, see our guide on Buying/Selling.
Source note: This article includes information reported by MyChesCo.
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