What Is The Collateral Source Rule? - Zirkin and Schmerling Law

What Is The Collateral Source Rule?

Maryland’s Collateral Source Rule says that car accident victims can recover the full amount of their damages even if insurance pays a portion of them. In other words, your damages are not limited to what you paid out of pocket.

Let’s say that PIP insurance paid $2,500 worth of your medical bills and the total cost of your medical bills was $5,000. Under the Collateral Source Rule, you are entitled to the full $5,000 in a lawsuit, and the insurance company or another party can’t use the fact that you were insured against you.  The same is also true if your health insurance were to pay $2,500 of your bills. Once again, the at-fault insurance company would still be responsible for the full costs of all of your medicals bills, which in this example would be $5,000.