The number of car accidents and basic insurance claims has been falling in recent years. But one type of car insurance claim is moving in the opposite direction: bodily injury.
Government regulators and insurance industry groups say the number of property damage, collision, and personal injury protection (PIP) claims has generally declined. Meanwhile, the number of injuries to drivers, passengers, or pedestrians has skyrocketed.
The trend has puzzled analysts and insurers alike.
Bodily injury claims now account for more than half of the liability claims insurers pay out, according to a recent analysis by CCC Intelligent Solutions.
The average payout has climbed to about $29,100 per injured person, according to Erik Bahnsen, director of casualty industry analytics at CCC.
“Bodily injury is the outlier,” Bahnsen wrote in a recent report, noting that these claims have risen about 11% over the past two years. At the same time, the cost per claim has risen at three to four times the rate of overall inflation, he said.
Many in the insurance industry say one factor behind the rise in bodily injury claims is “social inflation.” But others say the issue is far more complex.
Social inflation refers to changes in the legal environment and public attitudes toward lawsuits that can drive up claim costs. It can include more aggressive litigation tactics, larger jury awards, and shifting expectations about how much compensation injured people should receive.
Large jury awards are becoming more common
One sign of social inflation is the rise of so-called “nuclear verdicts” — jury awards exceeding $10 million.
Insurance industry analysts cite research that shows large awards against all corporations — not just insurance companies — have increased dramatically in recent years. The number of nuclear verdicts rose more than 50% in a single year, according to a study by Marathon Strategies. And the median size of those verdicts has roughly doubled.
Even larger awards — which Marathon’s report called “thermonuclear verdicts” — can exceed $100 million.
Industry research from the brokerage firm CRC Group estimates that economic inflation combined with social inflation has added more than $90 billion to personal auto insurance losses over the past decade.
Some analysts say the legal environment itself may be shifting, with more people filing lawsuits and juries seemingly more willing to award larger sums to injured plaintiffs. Those trends can lead to larger settlements and higher claim costs for insurers.
Changing attitudes toward lawsuits
Juror sentiment has moved increasingly toward plaintiffs, Martin Boerlin, head of casualty pricing for North America at Swiss Re, wrote in the insurer’s report “Verdicts on Trial: The Behavioral Science Behind America’s Skyrocketing Legal Payouts.”
“Litigation is no longer viewed by the average American as a last resort or an excessive burden on society,” Boerlin wrote. “This shift alters the psychological starting point in the courtroom.” Jurors may now enter deliberations believing that compensation levels should be higher, he wrote.
Attorneys say the issue is more complicated
Personal injury lawyers say it’s too simple to blame rising claims solely on social inflation.
“I think it’s easy to point to ‘social inflation,’ but that’s an oversimplification,” said Yosi Yahoudai, co-founder and managing partner of J&Y Law in Los Angeles.
Minor crashes may be declining, he said, but when accidents do occur, the injuries can be more severe.
There is also a greater medical understanding today of injuries such as concussions and traumatic brain injuries, he adds.
“What was being dismissed years ago is now documented and treated properly,” Yahoudai said. “The numbers aren’t on the rise — they’re just more accurate.”
What it means for drivers
For consumers, the rise in bodily injury claims can have ripple effects.
“As bodily injury claims get larger and more litigated, some insurers are reducing how much liability risk they’re willing to take on,” said Matt Brannon, senior economic analyst at Insurify and author of Insurify’s 2026 Insuring the American Driver Report. “That tightens the market.”
When insurers face higher claim payouts and legal costs, those expenses are typically spread across policyholders.
The result can be higher premiums, fewer coverage options, and stricter underwriting, even for drivers who’ve never filed a claim.
“Consumers end up paying more for the same coverage,” Brannon said, “because insurers have to account for escalating defense costs and injury payouts.”
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