Motor vehicle tort litigation has risen sharply over the past decade, adding to auto liability costs even as underlying claims frequency has not increased at the same pace. New research from Triple-I and Casualty Actuarial Society (CAS) estimates increased motor vehicle tort litigation at $43.84 billion from 2015 to 2024.
Quick Summary
- Motor vehicle tort filings grew significantly faster than the broader federal civil court system from 2015 to 2024, while underlying claims frequency did not keep pace.
- Federal motor vehicle tort filings reached 6,809 in 2024, the highest annual level during the study period dating to 1995.
- Increased motor vehicle tort litigation accounted for an estimated 25.3% to 30.5% of increasing inflation previously estimated for auto liability insurance from 2015 to 2024.
Motor Vehicle Litigation Is Increasing
Federal motor vehicle tort filings increased at a compound annual growth rate of 5.0% from 2014 to 2024. From 2015 through 2024, filing frequency increased at an annualized rate of 4.5%, while total federal civil case filing frequency declined 0.9%.
Plaintiff awards also increased. The average federal motor vehicle tort award favoring plaintiffs rose from $377,000 during 1995-2004 to $681,000 during 2015-2024.
State Court Data Expand the Analysis
Because most motor vehicle tort litigation occurs in state courts, the research also analyzes available state data. The study estimates $42.77 billion in excess value from state motor vehicle tort litigation and about $1.07 billion from federal litigation from 2015 through 2024.
More consistent state court data could help researchers better understand litigation trends and their relationship to insurance claim costs.
Read the full report: Motor Vehicle Tort Litigation Continues to Outpace Claims Frequency
