Motor Vehicle Tort Filings Hit 30-Year High, Driving Up Auto Insurance Costs
Event summary
- Motor vehicle tort filings reached 6,809 in 2024, the highest annual number since 1995.
- From 2015 to 2024, motor vehicle tort litigation added $43.84 billion in costs, accounting for 25.3% to 30.5% of the total inflation in auto liability insurance.
- Settlements accounted for 52.4% of disposed motor vehicle tort cases from 2015 to 2024, compared to 24.2% of total civil cases.
- The average amount awarded in federal motor vehicle tort judgments increased from $377,000 (1995-2004) to $681,000 (2015-2024).
- Federal court excess value from motor vehicle tort filings totaled approximately $1.07 billion from 2015 through 2024.
The big picture
The sharp rise in motor vehicle tort filings over the past decade highlights the growing disconnect between litigation activity and underlying claims frequency. This trend is adding significant costs to auto liability insurance, ultimately affecting consumer premiums. The data suggests that changes in litigation activity, amounts demanded or awarded, and claim severity are key factors contributing to insurance losses, necessitating more comprehensive court data for precise assessments.
What we're watching
- Litigation Trends
- Whether the pace of motor vehicle tort filings will continue to outpace broader civil case trends, particularly in no-fault and tort states.
- Insurance Costs
- How the increasing litigation activity and higher plaintiff awards will affect auto liability insurance premiums and claim severity.
- Data Transparency
- The availability and consistency of state civil court data to better assess litigation trends and their impact on insurance claim costs.