What is the collateral source rule?

The collateral source rule is a legal principle that applies in accident law in New Jersey. It states that an injured person cannot recover damages from the wrongdoer that are already covered by a separate source. The source of the money being used to cover the damages could be insurance, public benefits, or some other form of compensation. For example, if a person was injured in a car accident and their insurer paid for some of their medical expenses, the collateral source rule would prevent them from recovering those same expenses from the at-fault driver. The amount of damages the victim can recover from the at-fault party is reduced by any compensation they have already received from a separate source. Ultimately, the collateral source rule is an important part of accident law in New Jersey. It prevents double recovery from separate sources and it ensures that individuals hurt in an accident still receive some form of recovery despite insurance coverage or public benefits.

Related FAQs

What is gross negligence?
What is joint and several liability?
What is liability insurance?
What is a structured settlement?
What is a settlement offer?
When should I seek medical attention after an accident?
What is the Duty of Care in a Negligence Claim?
What is the collateral source rule?
Can I sue a government agency for an accident?
What is a summons and complaint?

What is the collateral source rule?

Related FAQs

Related Blog Posts