By Loretta Worters, Vice President, Media Relations, Triple-I
When Americans think about what drives the cost of auto insurance, accidents, vehicle repair costs, and medical expenses are likely to come to mind. But another factor has become an important part of the equation: litigation.
New research from Triple-I and the Casualty Actuarial Society (CAS) finds motor vehicle tort litigation has risen sharply over the past decade, outpacing both claims frequency and the broader federal civil court system.
The report estimates increased motor vehicle tort litigation added approximately $43.84 billion in excess value from 2015 through 2024. That represents about 25.3% to 30.5% of the $143.6 billion to $173.1 billion in increasing inflation previously identified by Triple-I and CAS in auto liability insurance over the same period.
The findings provide another window into how legal system abuse contributes to rising insurance costs and why understanding what happens after an accident can help consumers understand why their cost of coverage is rising.
Litigation and Claims Are Moving in Different Directions
One of the study’s most significant findings is the growing divergence between motor vehicle litigation and underlying claims frequency. From 2014 through 2024, motor vehicle tort lawsuits filed at the federal level increased at a compound annual growth rate of 5.0%. In 2024, filings reached 6,809 cases—the highest annual level during the study’s 30-year period.
The trend becomes even more pronounced when filings are scaled to the size of the working population. From 2015 through 2024, the total number of civil cases filed at the federal level declined at an annualized rate of 0.9%. Motor vehicle tort filing frequency, by comparison, increased at an annualized rate of 4.5%.
“The data show a growing disconnect between motor vehicle tort litigation and underlying claims frequency,” said Sean Kevelighan, CEO of Triple-I. “The continued growth in litigation is another indication of how legal system abuse is adding to auto liability costs, ultimately affecting premiums.”
More Cases Are Settling, and Awards Are Increasing
How motor vehicle tort cases are resolved also distinguishes them from the broader civil court system. Between 2015 and 2024, approximately 52.4% of federal motor vehicle tort cases on the federal level ended in settlements, compared with 24.2% of total civil cases. Only 7.1% of motor vehicle tort cases ended in judgments, compared with 27.4% of total civil cases.
At the same time, the average amount awarded in federal motor vehicle tort judgments favoring plaintiffs has increased substantially. The average award rose from approximately $377,000 between 1995 and 2004 to $681,000 between 2015 and 2024.
“The data suggest that liability loss trends may not be fully explained by claim frequency alone,” said Morgan Bugbee, FCAS, CAS vice president, research and practice advancement. “Changes in litigation activity, amounts demanded or awarded, and claim severity also contribute to insurance losses.”
Putting a Price on the Litigation Trend
To understand the potential financial impact of increased litigation, researchers estimated what they call the “excess value”—the amount above what would have been expected had earlier motor vehicle tort litigation trends had not accelerated.
For federal courts, the study estimates approximately $1.07 billion in excess value from 2015 through 2024. But federal courts represent only part of the picture. Most motor vehicle tort litigation takes place in state courts.
Using available state court data and two separate methodologies to estimate activity where complete information was unavailable, researchers calculated approximately $42.77 billion in excess value associated with state motor vehicle tort litigation.
Together, the state and federal estimates total approximately $43.84 billion.
That figure is particularly significant when viewed alongside previous Triple-I and CAS research into increasing inflation in auto liability insurance. The estimated excess litigation value represents roughly one-quarter to nearly one-third of the $143.6 billion to $173.1 billion in increasing inflation estimated for auto liability insurance between 2015 and 2024.
While comprehensive federal court data are available, state civil court information is far less consistent. As of 2024, comprehensive motor vehicle tort litigation data was publicly available in only 11 states, representing approximately 50.6% of the U.S. population. That makes it difficult to develop a complete national picture of motor vehicle litigation.
“Transparency matters,” Kevelighan said. “Reliable and consistent state court data would allow us to better understand where litigation costs are coming from, how they are changing and what they ultimately mean for consumers.”
What It Means for Consumers
Auto insurance premiums reflect the expected cost of claims. When the cost of resolving liability claims rises, including the costs associated with litigation and larger settlements and awards, those expenses can ultimately put upward pressure on the cost of coverage.
The latest Triple-I and CAS research adds to a growing body of evidence legal system abuse is contributing to increasing liability costs. It also underscores why greater transparency into the civil justice system is important for insurers, policymakers, researchers and consumers alike.
