A recent report from the U.S. Chamber of Commerce Institute for Legal Reform highlights New Jersey as one of the states with the highest tort costs, with automobile claims significantly contributing to this financial burden. The report was released on November 20th in Washington, D.C.
According to the report, New Jersey ranks among the states with the highest tort costs, amounting to $5,525 per household. Automobile claims are a major factor, contributing $7.8 billion to New Jersey’s total tort costs.
The ILR report indicates that tort costs in New Jersey grow at an annual rate of 7.1%, surpassing both inflation at 3.4% and GDP growth at 5.4%. These costs represent 2.52% of the state's GDP, placing it in the top ten nationally.
The report also notes that reforms in other states, such as West Virginia, have successfully reduced tort costs by over 20%, resulting in a per-household cost of $2,132—the lowest in the United States.
Additionally, Insurify's 2024 Car Insurance Trends Report forecasts that New Jersey’s full-coverage car insurance rates are expected to rise by 9% by the end of 2024, reflecting the ongoing impact of high tort costs.
