Collateral Source Rule

Understanding the Collateral Source Rule in Connecticut Personal Injury Cases

The collateral source rule plays a vital role in protecting your ability to collect full compensation after an accident. However, many people are unaware of how it works and could miss out on significant financial recovery as a result. By working with a knowledgeable attorney, you can ensure that this rule is applied correctly to maximize your damages after an accident.

How Does the Collateral Source Rule Work?

When you’ve been injured in an accident, you might receive compensation from multiple sources. The collateral source rule prevents payments from sources other than the defendant—like your own insurance—from reducing the amount of damages you can recover from the at-fault party.

For example:

• If your health insurance covers your medical bills after an accident, the at-fault party (and their insurer) cannot use that payment to argue that they owe you less compensation.
• The rule ensures that the defendant is held responsible for the entirety of the damages they caused, regardless of what other financial help you may have received.

Why Does the Collateral Source Rule Exist?

The collateral source rule exists to prevent defendants from benefiting from payments that victims receive from their own resources, like private insurance. Here’s why this is so important:

1. Encouraging Personal Insurance Coverage
   • If the collateral source rule didn’t exist, people might hesitate to buy private insurance because they could risk receiving reduced compensation in the event of an accident.
   • The rule protects those who invest in their own insurance by ensuring it doesn’t diminish their personal injury recovery.
2. Ensuring Accountability for Defendants
   • The rule makes sure the at-fault party remains fully responsible for the harm they caused. Victims with private insurance shouldn’t bear the burden of covering damages that should be paid by the negligent party.

Example of the Collateral Source Rule in Action

Imagine this scenario:

• You’re injured in a car accident, and your medical bills and property damage total $150,000.
• Your health insurance covers your medical expenses in full.

Under the collateral source rule:

• You can still seek full damages from the at-fault driver or their insurer for the entire $150,000, even though your health insurance already paid your medical costs.
• The at-fault party cannot use your health insurance payment to reduce their liability.

Are There Exceptions to the Collateral Source Rule?

There are exceptions to the rule, and one of the most significant is related to subrogation agreements with your insurance company.

• Subrogation means that:
  • Your insurance company can request reimbursement from you once you receive compensation from your personal injury case.
  • Alternatively, your insurer may pursue legal action against the at-fault party to recover what they paid on your behalf.
  • This can potentially reduce the amount you’re able to recover for your case.
• Some insurers may negotiate a discounted reimbursement, while others may require you to omit certain expenses (like medical costs) from your personal injury lawsuit altogether.

Collateral Source Rule Reform

Critics of the collateral source rule argue that it allows victims to receive a “double recovery,” prompting some states to introduce reforms or exceptions.

• In Connecticut, the collateral source rule still applies in tort cases like personal injury claims. However, exceptions or limitations may arise depending on the specific circumstances of your case.

Let Bert McDowell Injury Law Help You After an Accident

If you’ve been injured in an accident caused by someone else’s negligence, you could still be entitled to full compensation—even if you’ve already received payments from your insurance or other sources. At Bert McDowell Injury Law, we know how to navigate complex legal rules like the collateral source rule to help you get the maximum recovery you deserve.

Why Choose Us?

• Experienced Advocates: We understand the intricacies of the collateral source rule and how it impacts your case.
• Full Compensation Focus: Our team will fight to ensure you’re not shortchanged by insurance companies or opposing parties.
• No Upfront Costs: You don’t pay unless we win your case.

Get a Free Consultation Today

If you have questions about the collateral source rule or your personal injury claim, contact Bert McDowell Injury Law for a FREE consultation. Call us at (475) 231-3274 or fill out our online form today. Let us help you recover every dollar you’re entitled to after your accident.