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

Rising civil litigation expenses may push insurance premiums higher for U.S. households.

Updated on Oct. 30, 2026 in Insurance

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

Live Poll

Do you believe rising legal costs in the U.S. are making your household expenses less affordable?

U.S. tort costs reached $579.7 billion in 2023, up from $299.7 billion in 2014. These rising civil litigation expenses impact insurance premiums for households and businesses alike.

Why it matters

The steady increase in legal costs often filters down to the average household through higher insurance premiums, as companies adjust prices to cover growing liability payouts. These costs are currently rising at roughly double the pace of the broader economy.

U.S. tort costs totaled $579.7 billion in 2023, reflecting an average annual growth rate of 10.38% since 2014. This growth significantly outpaced the 5.17% average annual increase in nominal GDP over the same period.

The details

Tort costs encompass expenses for civil remedies, including legal fees, settlements, and monetary damages. The recent growth is driven by factors such as nuclear verdicts, third-party litigation funding, and aggressive attorney advertising. Because these costs are baked into the insurance landscape, they contribute to the rising prices individuals and businesses face for liability coverage.

U.S. tort costs stood at $299.7 billion in 2014.
Tort costs grew by an average of 10.38% annually between 2014 and 2023.
Total U.S. tort costs reached $579.7 billion in 2023.

Money Landscape

The rapid expansion of civil liability costs has significantly outpaced general inflation, signaling a long-term shift in the U.S. economic landscape. This trend continues to place upward pressure on the commercial and personal lines of insurance that households rely on.

The persistent rise in legal costs frequently results in higher auto and liability insurance premiums for many households. Reviewing your current policy coverage with a licensed insurance professional can help you ensure your budget remains protected against these broader market trends.

The takeaway

Rising tort costs are a sustained economic force that frequently influences the price of consumer and commercial insurance. Stay aware of your premium changes during renewal periods and consult with a qualified professional to evaluate your liability protection needs.