Triple-I Study Reveals $42.8B Excess Motor Vehicle Tort Litigation Impact on Auto Insurance
An analysis by the Insurance Information Institute (Triple-I) highlights a significant rise in motor vehicle tort litigation across the United States from 2014 to 2023, estimating $42.8 billion in excess litigation value in federal and state courts. This surge in legal activity contributes to increasing auto insurance costs, reflecting growing pressures within the legal system. The study underscores challenges posed by incomplete and inconsistent state civil court data, which hinders transparency and complicates efforts to address litigation impacts on insurance pricing. Triple-I emphasizes the need for standardized and publicly accessible civil case data nationwide to foster greater transparency and inform reform initiatives.
According to the analysis, the trend of rising tort claims aligns with previous findings by Triple-I and the Casualty Actuarial Society, which documented $118.9 billion in combined economic and social inflation affecting auto liability insurance during the same period. This inflation reflects expanded legal costs and broader social factors influencing insurance markets. The data-driven study integrates information from federal judicial centers and selected state court systems, revealing the scale of litigation-driven economic strain on both insurers and consumers.
Triple-I's report points to the impact of legal system dynamics, including plaintiff attorney advertising tactics, as factors escalating litigation and, consequently, insurance premiums. These insights focus on the intersection of legal environment, insurance market stability, and consumer costs, providing a data-backed basis for discussions on legal reform in auto insurance liability cases. The organization calls for improved data availability to better evaluate and mitigate the escalating litigation costs that permeate the insurance ecosystem.
The analysis and its findings are positioned within the broader scope of risk management and insurance education facilitated by Triple-I, an industry authority representing a significant portion of U.S. property/casualty insurance premiums. Triple-I operates in tandem with The Institutes to promote understanding of risk, loss prevention, and insurance market resilience. This report contributes to ongoing discourse about how evolving tort litigation trends influence underwriting, rate setting, and regulatory strategies in the auto insurance sector.