U.S. Tort Costs Climb to $579.7 Billion in 2023

Economic costs for civil remedies reached a new high in 2023, outpacing both national GDP and inflation rates.

Updated on Oct. 30, 2026 in Insurance

Bold flat-color editorial illustration of a heavy geometric scale balance, representing the rising economic burden of civil tort costs. — U.S. tort costs hit a record $579.7 billion in 2023, growing at an annual rate of 10.38% and significantly outpacing national GDP growth. AI Illustration. Upload story photo >

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U.S. tort costs rose to $579.7 billion in 2023, up significantly from $299.7 billion recorded in 2014. These economic costs for civil remedies are increasing at an average annual rate of 10.38%, double the growth pace of the nominal GDP.

Why it matters

Rising litigation costs are attributed to systemic factors including legal system abuse, high settlements, and aggressive attorney advertising. The prevalence of third-party litigation funding and nuclear verdicts further complicates the financial burden on the economy.

In 2023, commercial lines accounted for $377.73 billion in tort costs, while personal lines totaled $202.01 billion. Additionally, self-insured and uninsured parties bore $163.25 billion of these total economic damages.

The details

Total tort expenses are driven by combined costs in other liability categories, which reached $249.31 billion, and personal auto liability at $188.13 billion. These figures represent the total economic value of civil remedies for harm, covering both monetary damages and associated legal expenses.

2014 was the start of the study period when tort costs stood at $299.7 billion.
2014-2023 saw tort costs grow at an average annual rate of 10.38%.
2023 marked the most recent data point with total costs reaching $579.7 billion.

Market Dynamics

The rapid acceleration of tort costs suggests a structural shift in how civil liabilities influence the broader macroeconomic landscape. By consistently exceeding national GDP growth, these costs create an escalating drag on financial performance that differs from historical inflationary cycles.

The sustained increase in tort costs can influence insurance premiums and the long-term profitability of firms exposed to heavy liability risks. Retail investors should consider how these rising overheads might affect the earnings stability of companies within their insurance-heavy portfolios.

The takeaway

The gap between tort cost growth and GDP growth indicates that civil liability expenses are becoming a primary economic concern. Monitoring legal environment shifts and settlement trends is essential for anyone tracking long-term liability costs.