Rising Insurance Burdens: Legal Costs in the US and New Rules in Spain

Spain: Insurance laws are changing nationwide: If you own this vehicle, you’ll spend more money to protect it 

8 Sep 2024

Spain has reformed its Motor Insurance Law, making civil liability insurance mandatory for electric scooters and other personal mobility vehicles (PMVs) from January 2, 2026. The law, published as Ley 5/2025, also establishes a DGT-managed registry of PMV owners and clarifies vehicle categories by weight and speed to improve regulation and accident response. Basic insurance policies are expected to cost around €20–25 per year, with more comprehensive coverage ranging from €50–100. Failing to have insurance may result in fines and vehicle impoundment. The reform aims to organize the market, enhance safety, and ensure victims are protected in accidents.

USA: Legal system abuse adds billions to auto insurance costs – Triple I

5 Sep 2024

The Insurance Information Institute (Triple-I) estimates that excess value from U.S. motor vehicle tort cases reached $42.8 billion between 2014 and 2023, driven by rising litigation in both federal and state courts. Motor vehicle torts now make up a growing share of civil cases, with the majority settled rather than judged, contributing to higher auto insurance costs. Some states, including Georgia, Louisiana, and Florida, have enacted or proposed tort reforms to curb legal system abuse and stabilize insurance markets, though the full impact remains uncertain. Triple-I emphasizes the need for standardized, publicly accessible civil case data to improve transparency and better understand litigation’s effect on insurance costs.