Research shows that the costs of lawsuits per household are a hidden financial burden – and the price tag is growing quickly.
Nicholas C. Lucas
Executive Director, Research & Data Analytics, Institute for Legal Reform, U.S. Chamber of Commerce
Published
November 20, 2024
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Lawsuits Are Out of Control
The costs of lawsuits, specifically tort cases, are massive and rising. According to the latest research from the U.S. Chamber’s Institute for Legal Reform (ILR), costs and compensation in the U.S. tort system amounted to $529 billion in 2022, equivalent to 2.1 percent of U.S. GDP and $4,207 per American household.
The average annual tort cost growth rate has reached 7.1% since we began measuring in 2016, and that figure rises to 8.7% when looking only at cases involving businesses. If current trends continue, the costs of lawsuits will continue to skyrocket, with overall tort costs rising to over $900 billion by 2030.
What is the “Tort System?”
The “tort system” is the legal system in the United States that provides businesses and individuals with the means to obtain civil remedies for harm caused by others in the form of monetary damages and penalties. This essential mechanism includes a wide array of individuals and institutions involved in adjudicating claims of harm, whether in federal, state, or local courts, in arbitrations or mediations, or other settings.
While the tort system is designed to provide justice for real harms, some plaintiffs’ lawyers are focused on exploiting it. These lawyers may file abusive lawsuits, use deceptive advertising, or involve third-party funders who finance the litigation but reduce the plaintiffs' recoveries. This exploitation turns a system meant to compensate injured parties into a tool for personal gain, often at the expense of not just defendants but those it was designed to protect as well.
The costs of lawsuits in the tort system are large and continue to grow. As shown on the map below, these costs vary by state.
For details on how tort costs are playing out per household by state, select a state in the map below.
*Figures drawn from Brattle analysis of data from Verisk’s MarketStance and the National Association of Insurance Commissioners (NAIC)
Per-Household Costs of the U.S. Tort System
The map below is shaded according to tort costs per household in each state. Select a state below to explore state-specific data on the costs and compensation paid in the tort system.
$2,000 - $2,750
$2,750 - $3,000
$3,000 - $3,750
$3,750 - $5,000
$5,000 +
Alabama
$3,286
The tort burden per household in Alabama
$6,352,209,055
The total tort costs paid in Alabama
2.3%
The percentage of Alabama's GDP that went to tort costs
6.6%
The average growth rate of tort costs in Alabama from 2016 through 2022
Alaska
$3,219
The tort burden per household in Alaska
$850,947,241
The total tort costs paid in Alaska
1.3%
The percentage of Alaska's GDP that went to tort costs
5.6%
The average growth rate of tort costs in Alaska from 2016 through 2022
Arizona
$3,449
The tort burden per household in Arizona
$9,446,083,504
The total tort costs paid in Arizona
2.0%
The percentage of Arizona's GDP that went to tort costs
4.0%
The average growth rate of tort costs in Arizona from 2016 through 2022
Arkansas
$2,942
The tort burden per household in Arkansas
$3,447,506,331
The total tort costs paid in Arkansas
2.1%
The percentage of Arkansas's GDP that went to tort costs
3.7%
The average growth rate of tort costs in Arkansas from 2016 through 2022
California
$5,429
The tort burden per household in California
$72,298,145,395
The total tort costs paid in California
2.0%
The percentage of California's GDP that went to tort costs
8.8%
The average growth rate of tort costs in California from 2016 through 2022
Colorado
$4,149
The tort burden per household in Colorado
$9,450,870,779
The total tort costs paid in Colorado
1.9%
The percentage of Colorado's GDP that went to tort costs
7.3%
The average growth rate of tort costs in Colorado from 2016 through 2022
Connecticut
$5,133
The tort burden per household in Connecticut
$7,235,959,036
The total tort costs paid in Connecticut
2.3%
The percentage of Connecticut's GDP that went to tort costs
6.9%
The average growth rate of tort costs in Connecticut from 2016 through 2022
Delaware
$8,026
The tort burden per household in Delaware
$3,122,115,914
The total tort costs paid in Delaware
3.5%
The percentage of Delaware's GDP that went to tort costs
12.1%
The average growth rate of tort costs in Delaware from 2016 through 2022
District of Columbia
$6,347
The tort burden per household in District of Columbia
$2,004,152,488
The total tort costs paid in District of Columbia
1.2%
The percentage of District of Columbia's GDP that went to tort costs
7.9%
The average growth rate of tort costs in District of Columbia from 2016 through 2022
Florida
$5,768
The tort burden per household in Florida
$48,179,014,125
The total tort costs paid in Florida
3.3%
The percentage of Florida's GDP that went to tort costs
8.7%
The average growth rate of tort costs in Florida from 2016 through 2022
Georgia
$5,050
The tort burden per household in Georgia
$19,931,606,019
The total tort costs paid in Georgia
2.6%
The percentage of Georgia's GDP that went to tort costs
10.6%
The average growth rate of tort costs in Georgia from 2016 through 2022
Hawaii
$3,435
The tort burden per household in Hawaii
$1,662,232,670
The total tort costs paid in Hawaii
1.6%
The percentage of Hawaii's GDP that went to tort costs
5.2%
The average growth rate of tort costs in Hawaii from 2016 through 2022
Idaho
$3,129
The tort burden per household in Idaho
$2,113,421,618
The total tort costs paid in Idaho
1.9%
The percentage of Idaho's GDP that went to tort costs
5.0%
The average growth rate of tort costs in Idaho from 2016 through 2022
Illinois
$4,281
The tort burden per household in Illinois
$21,272,552,611
The total tort costs paid in Illinois
2.1%
The percentage of Illinois's GDP that went to tort costs
7.4%
The average growth rate of tort costs in Illinois from 2016 through 2022
Indiana
$2,962
The tort burden per household in Indiana
$7,860,401,286
The total tort costs paid in Indiana
1.7%
The percentage of Indiana's GDP that went to tort costs
6.3%
The average growth rate of tort costs in Indiana from 2016 through 2022
Iowa
$2,797
The tort burden per household in Iowa
$3,608,533,743
The total tort costs paid in Iowa
1.5%
The percentage of Iowa's GDP that went to tort costs
4.8%
The average growth rate of tort costs in Iowa from 2016 through 2022
Kansas
$2,928
The tort burden per household in Kansas
$3,363,415,274
The total tort costs paid in Kansas
1.6%
The percentage of Kansas's GDP that went to tort costs
6.8%
The average growth rate of tort costs in Kansas from 2016 through 2022
Kentucky
$2,808
The tort burden per household in Kentucky
$4,967,838,173
The total tort costs paid in Kentucky
1.9%
The percentage of Kentucky's GDP that went to tort costs
4.4%
The average growth rate of tort costs in Kentucky from 2016 through 2022
Louisiana
$4,389
The tort burden per household in Louisiana
$7,748,107,848
The total tort costs paid in Louisiana
2.7%
The percentage of Louisiana's GDP that went to tort costs
4.9%
The average growth rate of tort costs in Louisiana from 2016 through 2022
Maine
$2,341
The tort burden per household in Maine
$1,358,290,965
The total tort costs paid in Maine
1.6%
The percentage of Maine's GDP that went to tort costs
5.3%
The average growth rate of tort costs in Maine from 2016 through 2022
Maryland
$3,694
The tort burden per household in Maryland
$8,563,253,607
The total tort costs paid in Maryland
1.8%
The percentage of Maryland's GDP that went to tort costs
6.1%
The average growth rate of tort costs in Maryland from 2016 through 2022
Massachusetts
$4,593
The tort burden per household in Massachusetts
$12,590,470,138
The total tort costs paid in Massachusetts
1.8%
The percentage of Massachusetts's GDP that went to tort costs
7.8%
The average growth rate of tort costs in Massachusetts from 2016 through 2022
Michigan
$3,076
The tort burden per household in Michigan
$12,331,551,940
The total tort costs paid in Michigan
2.0%
The percentage of Michigan's GDP that went to tort costs
3.8%
The average growth rate of tort costs in Michigan from 2016 through 2022
Minnesota
$3,183
The tort burden per household in Minnesota
$7,180,685,801
The total tort costs paid in Minnesota
1.6%
The percentage of Minnesota's GDP that went to tort costs
6.3%
The average growth rate of tort costs in Minnesota from 2016 through 2022
Mississippi
$2,843
The tort burden per household in Mississippi
$3,187,927,549
The total tort costs paid in Mississippi
2.3%
The percentage of Mississippi's GDP that went to tort costs
5.0%
The average growth rate of tort costs in Mississippi from 2016 through 2022
Missouri
$3,387
The tort burden per household in Missouri
$8,325,428,460
The total tort costs paid in Missouri
2.1%
The percentage of Missouri's GDP that went to tort costs
6.5%
The average growth rate of tort costs in Missouri from 2016 through 2022
Montana
$3,894
The tort burden per household in Montana
$1,728,585,594
The total tort costs paid in Montana
2.6%
The percentage of Montana's GDP that went to tort costs
7.7%
The average growth rate of tort costs in Montana from 2016 through 2022
Nebraska
$3,276
The tort burden per household in Nebraska
$2,543,771,754
The total tort costs paid in Nebraska
1.5%
The percentage of Nebraska's GDP that went to tort costs
6.7%
The average growth rate of tort costs in Nebraska from 2016 through 2022
Nevada
$4,603
The tort burden per household in Nevada
$5,355,880,808
The total tort costs paid in Nevada
2.4%
The percentage of Nevada's GDP that went to tort costs
8.3%
The average growth rate of tort costs in Nevada from 2016 through 2022
New Hampshire
$2,734
The tort burden per household in New Hampshire
$1,490,369,391
The total tort costs paid in New Hampshire
1.4%
The percentage of New Hampshire's GDP that went to tort costs
5.2%
The average growth rate of tort costs in New Hampshire from 2016 through 2022
New Jersey
$5,525
The tort burden per household in New Jersey
$18,995,789,255
The total tort costs paid in New Jersey
2.5%
The percentage of New Jersey's GDP that went to tort costs
4.7%
The average growth rate of tort costs in New Jersey from 2016 through 2022
New Mexico
$3,252
The tort burden per household in New Mexico
$2,643,778,039
The total tort costs paid in New Mexico
2.1%
The percentage of New Mexico's GDP that went to tort costs
1.3%
The average growth rate of tort costs in New Mexico from 2016 through 2022
New York
$7,027
The tort burden per household in New York
$53,436,830,380
The total tort costs paid in New York
2.6%
The percentage of New York's GDP that went to tort costs
7.3%
The average growth rate of tort costs in New York from 2016 through 2022
North Carolina
$2,624
The tort burden per household in North Carolina
$10,770,688,253
The total tort costs paid in North Carolina
1.5%
The percentage of North Carolina's GDP that went to tort costs
7.1%
The average growth rate of tort costs in North Carolina from 2016 through 2022
North Dakota
$2,913
The tort burden per household in North Dakota
$932,209,925
The total tort costs paid in North Dakota
1.3%
The percentage of North Dakota's GDP that went to tort costs
4.9%
The average growth rate of tort costs in North Dakota from 2016 through 2022
Ohio
$2,583
The tort burden per household in Ohio
$12,372,188,656
The total tort costs paid in Ohio
1.5%
The percentage of Ohio's GDP that went to tort costs
5.8%
The average growth rate of tort costs in Ohio from 2016 through 2022
Oklahoma
$2,930
The tort burden per household in Oklahoma
$4,462,264,537
The total tort costs paid in Oklahoma
1.8%
The percentage of Oklahoma's GDP that went to tort costs
3.7%
The average growth rate of tort costs in Oklahoma from 2016 through 2022
Oregon
$3,320
The tort burden per household in Oregon
$5,580,902,133
The total tort costs paid in Oregon
1.9%
The percentage of Oregon's GDP that went to tort costs
4.2%
The average growth rate of tort costs in Oregon from 2016 through 2022
Pennsylvania
$3,752
The tort burden per household in Pennsylvania
$19,489,105,805
The total tort costs paid in Pennsylvania
2.1%
The percentage of Pennsylvania's GDP that went to tort costs
5.0%
The average growth rate of tort costs in Pennsylvania from 2016 through 2022
Rhode Island
$3,966
The tort burden per household in Rhode Island
$1,714,314,210
The total tort costs paid in Rhode Island
2.4%
The percentage of Rhode Island's GDP that went to tort costs
5.4%
The average growth rate of tort costs in Rhode Island from 2016 through 2022
South Carolina
$3,734
The tort burden per household in South Carolina
$7,553,730,326
The total tort costs paid in South Carolina
2.5%
The percentage of South Carolina's GDP that went to tort costs
8.7%
The average growth rate of tort costs in South Carolina from 2016 through 2022
South Dakota
$2,594
The tort burden per household in South Dakota
$910,921,461
The total tort costs paid in South Dakota
1.3%
The percentage of South Dakota's GDP that went to tort costs
6.4%
The average growth rate of tort costs in South Dakota from 2016 through 2022
Tennessee
$3,096
The tort burden per household in Tennessee
$8,402,347,198
The total tort costs paid in Tennessee
1.7%
The percentage of Tennessee's GDP that went to tort costs
6.8%
The average growth rate of tort costs in Tennessee from 2016 through 2022
Texas
$4,594
The tort burden per household in Texas
$48,195,760,924
The total tort costs paid in Texas
2.0%
The percentage of Texas's GDP that went to tort costs
9.7%
The average growth rate of tort costs in Texas from 2016 through 2022
Utah
$4,354
The tort burden per household in Utah
$4,627,408,796
The total tort costs paid in Utah
1.8%
The percentage of Utah's GDP that went to tort costs
8.5%
The average growth rate of tort costs in Utah from 2016 through 2022
Vermont
$2,659
The tort burden per household in Vermont
$706,985,133
The total tort costs paid in Vermont
1.7%
The percentage of Vermont's GDP that went to tort costs
2.1%
The average growth rate of tort costs in Vermont from 2016 through 2022
Virginia
$2,968
The tort burden per household in Virginia
$9,765,328,958
The total tort costs paid in Virginia
1.5%
The percentage of Virginia's GDP that went to tort costs
6.1%
The average growth rate of tort costs in Virginia from 2016 through 2022
Washington
$3,504
The tort burden per household in Washington
$10,439,797,257
The total tort costs paid in Washington
1.4%
The percentage of Washington's GDP that went to tort costs
6.3%
The average growth rate of tort costs in Washington from 2016 through 2022
West Virginia
$2,132
The tort burden per household in West Virginia
$1,526,461,681
The total tort costs paid in West Virginia
1.6%
The percentage of West Virginia's GDP that went to tort costs
-4.0%
The average growth rate of tort costs in West Virginia from 2016 through 2022
Wisconsin
$2,538
The tort burden per household in Wisconsin
$6,155,361,894
The total tort costs paid in Wisconsin
1.6%
The percentage of Wisconsin's GDP that went to tort costs
3.0%
The average growth rate of tort costs in Wisconsin from 2016 through 2022
Wyoming
$2,886
The tort burden per household in Wyoming
$675,699,330
The total tort costs paid in Wyoming
1.4%
The percentage of Wyoming's GDP that went to tort costs
4.4%
The average growth rate of tort costs in Wyoming from 2016 through 2022
For in-depth statistical analysis and a full explanation of methodology, see the full study.
The tort cost figures and the report describing the methods used to develop those figures are the work product of David McKnight and Paul Hinton of the Brattle Group. The commentary on this page is the work of the U.S. Chamber Institute for Legal Reform.
About the author
Nicholas C. Lucas
Nicholas Lucas is the Executive Director of Research & Data Analytics at the Chamber's Institute for Legal Reform.
Nicholas C. Lucas
