You should care ....   It may be the most important rule you have never heard of when it comes to a personal injury case.  The Colorado collateral source rule states that even if an insurance policy or another collateral source pays your medical expenses, the defendant will be liable for the full amount of your medical bills. The collateral source rule aims to hold at-fault parties liable for their actions, even if someone else has already paid for the victim’s medical bills.

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.