How Does Illinois’s Collateral Source Rule Work?
If you have been injured in an accident due to someone else’s negligent actions, your own insurance company will often handle your medical expenses before you press charges. In many states, this could be brought against you in the course of a lawsuit. The defendant (i.e. those who were at fault) can try to use the fact that you’d already received compensation to reduce or eliminate their responsibility to pay damages.
Illinois, however, has a collateral source rule that prevents this from happening. In essence, the rule dictates that the defendant cannot submit evidence that you received compensation from a collateral source (such as your insurance company). There are a few reasons why this is beneficial to you, but it can also result in some challenges in recovering damages as well.