Motor Vehicle Tort Filings Hit 30-Year High
Motor vehicle-related lawsuits have increased significantly over the past decade, creating another source of pressure on auto liability insurance costs and potentially influencing the premiums paid by consumers. A new analysis from the Insurance Information Institute (Triple-I) and the Casualty Actuarial Society (CAS) finds that motor vehicle tort litigation has grown substantially faster than overall civil court activity in recent years.
The joint report, titled Motor Vehicle Tort Litigation Continues to Outpace Claims Frequency, examines motor vehicle tort cases in federal and state civil courts and compares litigation trends with broader developments in the U.S. civil court system. The research focuses particularly on the period from 2015 through 2024, while also examining longer-term trends dating back to 1995.
According to the analysis, federal motor vehicle tort filings reached their highest annual level in three decades in 2024. A total of 6,809 motor vehicle tort cases were filed during the year, representing the highest number recorded during the study period.
The findings point to a growing difference between the number of motor vehicle claims and the number of cases entering the court system. While overall civil filings have generally declined or remained relatively stable in several periods, motor vehicle tort litigation has moved in the opposite direction.
Triple-I and CAS estimate that the increase in motor vehicle tort litigation represented approximately $43.84 billion between 2015 and 2024. The researchers estimate that this amount accounted for approximately 25.3% to 30.5% of the previously estimated $143.6 billion to $173.1 billion increase in inflation affecting auto liability insurance during the same period.
The organizations say the results indicate that changes in litigation activity may be an important factor contributing to the rising cost of auto liability insurance.
Motor Vehicle Lawsuits Rise Faster Than Overall Civil Litigation
One of the central findings of the research is the widening gap between motor vehicle tort filings and the broader federal civil court system.
Historical federal court data show that motor vehicle tort filings experienced a prolonged decline between 1995 and 2008. During that period, filings decreased at an annualized rate of approximately 2.8%. Between 2008 and 2014, the number of filings remained relatively flat.
The pattern changed significantly after 2014.
From 2014 through 2024, motor vehicle tort filings increased at a compound annual growth rate of approximately 5.0%. This represented a substantial reversal from the declines observed during the earlier period.
The difference becomes even more apparent when court activity is adjusted for the size of the U.S. economy. Between 2015 and 2024, the frequency of total federal civil case filings declined at a compound annual growth rate of approximately 0.9%.
By contrast, the frequency of motor vehicle tort filings increased at an annualized rate of approximately 4.5%.
The divergence suggests that motor vehicle litigation is following a different trajectory from civil litigation overall. The researchers argue that this development is important when analyzing changes in auto liability insurance costs because claim frequency alone may not explain the full increase in losses.
2024 Marks a Three-Decade High
The 2024 federal filing figure represents one of the most significant findings in the report.
Federal courts recorded 6,809 motor vehicle tort filings during the year, the highest annual total recorded in the study period beginning in 1995.
The increase comes after years of relatively low or declining filing activity. The reversal indicates that litigation has become an increasingly important component of the motor vehicle liability environment.
For insurers, the number of claims entering litigation can have financial consequences beyond the original cost of repairing a vehicle or compensating an injured party. Legal representation, court proceedings, settlements, judgments and other litigation-related expenses can increase the ultimate cost associated with claims.
As litigation activity rises, insurers must account for these costs when estimating future liabilities and setting reserves. Changes in litigation patterns can therefore influence the overall cost structure of auto liability insurance.
Settlements Dominate Motor Vehicle Tort Cases
Another significant finding concerns how motor vehicle tort cases are resolved.
The analysis found that approximately 52.4% of disposed motor vehicle tort cases between 2015 and 2024 were settled. That figure is substantially higher than the 24.2% settlement rate recorded across all civil cases.
At the same time, only 7.1% of motor vehicle tort cases received a judgment disposition during the period. By comparison, 27.4% of total civil cases received a judgment disposition.
The difference highlights the important role settlements play in motor vehicle litigation.
A settlement allows the parties involved to resolve a dispute without proceeding through a complete trial and judgment. While settlements can reduce the time and uncertainty associated with litigation, the growing number of cases being resolved through settlement can also affect the amount insurers ultimately pay on liability claims.
For actuaries and insurance analysts, understanding settlement patterns is therefore important when estimating claims severity and future loss costs.
Plaintiff Awards Have Increased
The research also identifies an increase in the average amount awarded to plaintiffs in federal motor vehicle tort judgments.
During the 1995-2004 period, the average amount awarded in federal motor vehicle tort judgments in favor of plaintiffs was approximately $377,000.
That figure increased to approximately $681,000 during the 2015-2024 period.
The increase represents a substantial change in the average value of plaintiff awards over time. Higher awards can contribute to increased claim severity and may ultimately place additional pressure on liability insurance costs.
The researchers emphasize that litigation trends should therefore be evaluated alongside other factors affecting insurance losses. The number of claims alone does not necessarily capture the full financial impact of the liability system.
Changes in settlement amounts, judgments, legal costs and other litigation-related factors can all influence the final cost of claims.
Federal Court Excess Value Estimated at $1.07 Billion
The report estimates that the excess value of motor vehicle tort filings in federal courts totaled approximately $1.07 billion between 2015 and 2024.
This measurement provides another indication of the financial significance of litigation trends.
The researchers use court data to examine the relationship between filing activity and the broader development of auto liability insurance losses. Their findings suggest that the increase in litigation represents a meaningful portion of the overall increase in liability costs during the period.
However, the analysis does not suggest that litigation is the only factor affecting insurance inflation.
Auto insurance losses can be influenced by numerous factors, including vehicle repair costs, medical expenses, accident severity, changes in driving behavior, vehicle technology, economic conditions and other components of the claims environment.
The new research instead focuses on the contribution that litigation activity may make to the broader increase in liability insurance costs.
Growth Appears in Both No-Fault and Tort States
The increase in motor vehicle tort filings was not limited to one type of state insurance system.
The study found that federal motor vehicle tort filings increased in both no-fault and tort states between 2015 and 2024.
In no-fault states, federal motor vehicle tort filings increased at a compound annual growth rate of approximately 4.6%.
In tort states, filings increased at a faster annual rate of approximately 6.2%.
The results indicate that the increase in motor vehicle litigation is occurring across different legal and insurance environments.
Although state-level differences can affect when and how individuals pursue liability claims, the overall federal filing data point toward a broader increase in motor vehicle-related litigation.
Litigation Activity and Claims Frequency
One of the report’s broader implications is that insurance loss trends cannot necessarily be understood by examining claims frequency alone.
If the number of accidents or insurance claims remains stable while litigation increases, insurers may still experience higher costs because a larger proportion of claims may require legal involvement.
Similarly, even when the number of cases does not rise dramatically, higher settlements and judgments can increase total losses.
Morgan Bugbee, FCAS, vice president of research and practice advancement at CAS, said the data indicate that liability loss trends may not be fully explained by claim frequency.
According to the research, litigation activity, amounts demanded or awarded and claim severity can all contribute to insurance losses.
This distinction is important for actuaries because historical claims frequency is commonly used as one of the factors in estimating future losses. If litigation behavior changes independently of accident frequency, relying solely on historical claim counts could provide an incomplete picture of future liability costs.
Need for More Comprehensive Court Data
The report also points to the importance of improving the availability and consistency of court data.
Researchers, actuaries and policymakers rely on court records to understand how litigation trends are changing over time. However, differences in data collection and reporting can make it difficult to compare cases consistently across jurisdictions.
CAS researchers say that comprehensive and consistent court data would help analysts better understand the relationship between litigation activity and insurance losses.
Improved data could provide additional insight into questions such as how frequently motor vehicle claims enter litigation, how long cases remain active, how settlement values change over time and how outcomes differ across jurisdictions.
More detailed information could also help researchers distinguish between changes caused by accident frequency and changes resulting from the legal environment.
Potential Impact on Auto Insurance Costs
For consumers, the findings are relevant because liability insurance costs are ultimately reflected in the price of auto insurance.
When insurers face higher claim costs, they generally need to account for those costs in their pricing and reserving processes. Litigation is one component of the overall claims environment that can influence those expenses.
The Triple-I and CAS research estimates that increasing motor vehicle tort litigation represented approximately $43.84 billion of additional cost between 2015 and 2024.
The organizations estimate that this amount represents between roughly one-quarter and nearly one-third of the previously estimated increase in auto liability insurance inflation during the same period.
This does not mean that litigation alone caused increases in consumers’ premiums. Auto insurance pricing is affected by a broad range of factors, and the report examines litigation as one contributor within that larger environment.
Nevertheless, the findings demonstrate why insurers, regulators, policymakers and industry analysts are paying increasing attention to litigation trends.
A Changing Auto Liability Environment
The new Triple-I and CAS analysis provides a long-term view of how motor vehicle tort litigation has changed in the United States.
After declining for much of the period between the mid-1990s and late 2000s, federal motor vehicle tort filings began increasing more rapidly after 2014. By 2024, annual filings had reached their highest level in three decades.
At the same time, motor vehicle tort filings have grown faster than overall federal civil case activity. Settlement has become a particularly common method of resolving these cases, while average plaintiff awards in federal judgments have also increased substantially compared with earlier periods.
The research therefore points to several interconnected developments: more motor vehicle cases entering federal courts, a greater concentration of cases resolved through settlements and higher average plaintiff awards in judgments.
Together, these trends can contribute to increased liability claim severity and higher insurance costs.
For the insurance industry, the findings reinforce the need to monitor not only how often accidents occur but also what happens after claims are filed. Litigation behavior, settlement activity and award levels can all affect the ultimate cost of resolving motor vehicle liability claims.
For consumers, the broader significance is that auto insurance prices are influenced by more than accident frequency alone. The legal environment surrounding vehicle crashes can also affect insurers’ costs and, consequently, the economics of automobile liability coverage.
As motor vehicle litigation continues to evolve, the availability of reliable court data will remain important. Continued research by organizations such as Triple-I and CAS could help insurers, actuaries, policymakers and other stakeholders better understand how changes in the civil justice system interact with the cost of auto liability insurance.
The latest analysis ultimately highlights a significant shift in the motor vehicle liability landscape: litigation activity has accelerated even as broader federal civil case activity has declined. Understanding that divergence may be increasingly important for evaluating future insurance loss trends and the factors shaping the cost of auto coverage.
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