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What is the “Collateral Source Rule” in New York Personal Injury Law?

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Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C.

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Written/Reviewed By:

Barry S. Kantrowitz, Esq.

Last Updated: Apr 27, 2026

Read Time: 3 mins

An accident victim who suffers injuries due to someone else’s negligence is entitled to recover full compensation for all injury-related costs and expenses from all possible sources. When there is more than one source, New York and other states apply a “collateral source rule.” It effectively coordinates the injured party’s compensation so that they don’t receive multiple payments for the same damages. Understanding how this rule will affect an accident victim’s damages is often the key to recovering maximum payment in a personal injury lawsuit.

At Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C., we combine our extensive knowledge of the state’s collateral source rule to recover the largest available damages awards for our clients. We accomplish this by establishing the total value of the client’s economic and non-economic damages and fighting for the full compensation owed to an accident victim from every payment source.

Does the collateral source rule limit the total amount that an accident victim can recover?

The collateral source rule does not limit payment of the total amount of damages but only prevents the victim from receiving duplicate payments from different parties. For example, the victim incurs medical bills in the total amount of $100,000, and their health insurance reimburses that full amount. In that case, they cannot recover that same $100,000 reimbursement from a negligent party’s liability insurance carrier.

If multiple sources are available to reimburse a victim’s losses and expenses, why should they hire a lawyer?

Damages are rarely limited to medical bills. They also include wages that the victim did not earn while recuperating, the costs and expenses for rehabilitation and occupational therapy, the dollar value of pain and suffering, and the burden placed on the victim’s family and any resulting injuries. A New York personal injury lawyer will ensure that all economic and non-economic losses are considered in calculating a final damages award. They will also pursue the payment sources that are responsible for reimbursing those losses.

How is the collateral source rule applied in a personal injury lawsuit?

When a jury finds in favor of an accident victim and orders a negligent party to pay damages, that party has the burden of showing with reasonable certainty that a collateral source is available to pay a portion of it. If the negligent party presents this proof, the jury’s award is reduced by the amount of the collateral source recovery. This is a simple calculation when payments have already been made, or bills and invoices have been issued. However, it is more complicated when an accident victim may continue to receive reimbursements from collateral sources for future anticipated costs and expenses. The victim’s personal injury attorney will verify that all their future costs and expenses are considered in all damages calculations.

Contact Us to Recover the Damages You Are Entitled to Recover from All Collateral Sources

At Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C., we have more than 45 years of experience recovering the most money for our injured clients from all liability insurers and other payors. We do not rest until we are confident that we have received the full amount of damages from every possible source.

Please see our website or call us as soon as you can after suffering injuries in a car crash, a slip and fall incident, or any other accident caused by someone else’s negligence in Rockland County or elsewhere in New York. We will apply the New York collateral source rule to your benefit. Finally, we will not let a negligent party escape its obligations to pay you compensation if collateral sources are not paying your damages.

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   LWelsh 
 8 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Clever and efficient.
  
 
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   Kenny Perlow 
 29 days ago
 
 
 Trustindex verifies that the original source of the review is Google. KGG Law, and Barry Kantrowitz in particular, set the bar high for what a thorough, practical, strategic, compassionate and smart lawyer can be. Everything about Barry's advice and representation was exemplary and the stress mitigation that resulted was invaluable. On top of that, the ultimate result Barry achieved was beyond what was reasonable to expect and we are forever grateful. Often, people say that you hire a lawyer to prevent a problem. Sometimes, unfortunately, you need an attorney to solve a problem and I could not recommend Barry and his firm any more highly in that regard.
  
 
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   Aliza Ali 
 93 days ago
 
 
 Trustindex verifies that the original source of the review is Google. My dad had a great experience with this law firm. From the very beginning, the team was professional, knowledgeable, and always willing to answer our questions. They kept us informed throughout the entire process and made what could have been a very stressful situation much easier to handle. We truly appreciated their dedication, honesty, and hard work. Thanks to their support, my dad felt confident every step of the way. We are very grateful for everything they did and would highly recommend this firm to anyone looking for reliable legal representation.
  
 
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   Jana Montero 
 96 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I had a wonderful experience working with Sam Smith. He was very responsive, thorough, and easy to work with from start to finish. He walked me through everything clearly and made what started as a very stressful situation for me into something completely manageable. I would not hesitate to recommend him and the firm!
  
 
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   Mike Sakmann 
 102 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I sought legal advice regarding an employment matter and had an excellent experience working with Sam Smith, Esq. at KGG Law. Sam was thorough, attentive, and took the time to listen carefully to my concerns before providing clear, thoughtful guidance. I appreciated the professionalism and care shown throughout the process, and I would confidently recommend KGG Law to anyone in need of legal assistance.
  
 
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   Liz Hecker 
 108 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I can't say enough about this firm. They manage to comfort you during the whole legal process while staying professional and doing what is right. I would recommend them to anyone and also hire them again if I need legal help.
  
 
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   Brandy Miller 
 131 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Kate is the best. She helped me very quickly, and was very attentive with all of my needs. So thankful for her
  
 
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   Mike Greenspan 
 144 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Kate Carballo is a dedicated, passionate, and creative attorney whom I had the pleasure to lecture with at a state trial lawyer's conference. Kate's lecture demonstrated how she uses her innovative and "out-of-the-box thinking" to achieve outstanding results for her injured clients. That Kate is certified by the Supreme Court of New Jersey as a civil trial attorney is a testament to her skills, experience and commitment to excellence.
  
 
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   Jonathan Sampson 
 151 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Was referred to KGG law by a friend and could not have asked for better legal representation. They walked me through every step of the process after my accident and began every call with “ how are you feeling” which was just one example of how much they care about their clients. They handled my case very efficiently, professionally and courteously. My attorney Kate Carballo was a rock star! So clearly experienced, she consistently made me feel at ease with the process. Highly recommend
  
 
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   Vinnie Kung 
 154 days ago
 
 
 Trustindex verifies that the original source of the review is Google. We had a great experience with the team at KGG Law. While it was a traumatic time for our family, they made it very easy for us and explained all of our options. They even performed due diligence to make sure that after our settlement, there would be no further issues which I think is even more important than the settlement itself. Thank you!

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What is the “Collateral Source Rule” in New York Personal Injury Law?

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