Did you know that Virginia is an anti-collateral source state? That means that third-party liability insurance carriers cannot offset your settlement by the payments made to you or on behalf of you from other sources, like health insurance or medical expenses under your own auto policy. We often see this rule coming into play when there is ‘double dipping’, or both third-party and your own auto insurance is the same insurance carrier. Because an adjuster knows how much “medical expenses” the insurance has paid out, they will try to offset that amount from the settlement offer. This is not allowed in Virginia.
“[D]efendant, who by his negligence, has injured another, owes to such other compensation for the injuries he has inflicted and the payment for those injuries from a collateral source cannot relieve the defendant of his obligation.” Kellam, 162 Va. at 764, 175 S.E. at 636.
Third parties are not allowed to benefit from the fact that an injured person has health insurance or has opted to purchase medical expenses. Don’t let adjusters convince you otherwise!
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