Many clients ask why is this fair? Or what is the reason for the rule?
The reasoning behind the collateral source rule is to place accountability with the party that caused the accident, regardless of whether someone else has already paid part or all of the victim’s expenses. The collateral source rule brings justice to the person or entity that caused the accident. Otherwise, the defendant would get off without having to pay anything for his or her negligence – or paying very little to cover the victim’s out-of-pocket expenses alone.