U.S. Tort Costs Nearly Double in Nine Years
Civil litigation costs rose from $299.7 billion in 2014 to $579.7 billion in 2023, according to a new analysis.
Updated on Nov. 10, 2026 in Insurance
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U.S. tort costs rose 93.4% to $579.7 billion between 2014 and 2023, according to a 2026 international comparison prepared by the U.S. Chamber Institute for Legal Reform with the Insurance Information Institute. Tort costs measure the economic expenses of civil remedies for harm, including monetary damages and legal expenses.
Why it matters
Tort costs that grew faster than the economy place pressure on insurance pricing and the broader cost of doing business. The analysis attributes the growth to larger settlements, aggressive plaintiff advertising, and third-party litigation funding.
Commercial insurance lines accounted for approximately $377.73 billion of 2023 tort costs, while personal automobile liability reached $188.13 billion. Self-insured and uninsured parties absorbed $163.25 billion, and the analysis does not project whether these costs will continue rising.
The players
Insurance Information Institute
A nonprofit communications organization funded by the property and casualty insurance industry that analyzes insurance issues for consumers and policymakers.
U.S. Chamber Institute for Legal Reform
The legal reform arm of the U.S. Chamber of Commerce that advocates for changes to the civil justice system.
The details
Tort costs grew at an average annual rate of 10.38%, roughly double the 5.17% average annual growth of nominal U.S. gross domestic product over the same period. Personal insurance lines accounted for $202.01 billion, and other liability costs totaled $249.31 billion in 2023.
Timeline
2014: Annual U.S. tort costs stood at $299.7 billion.
2023: Annual U.S. tort costs reached $579.7 billion.
2026: The U.S. Chamber Institute for Legal Reform published its international tort cost report.
Market Dynamics
U.S. tort costs grew at roughly twice the pace of nominal GDP between 2014 and 2023, a gap that the Insurance Information Institute links to larger settlements, plaintiff advertising, and third-party litigation funding. The divergence places sustained pressure on commercial and personal insurance lines during a period of broader economic expansion.
Rising liability costs can translate into higher premiums for commercial and personal auto coverage over time. Readers managing household budgets may see these pressures reflected in renewal rates, depending on their carrier and state.
The takeaway
Liability costs are growing faster than the economy, so reviewing auto and liability coverage at renewal can help households anticipate premium changes. Comparing quotes across carriers is one practical step to manage those costs.
Further reading
Explore related coverage in the Insurance section for more context on how litigation costs affect policy pricing.
Source note: This article includes information reported by MyChesCo.
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