What does the collateral source rule state regarding damage recovery?

The collateral source rule is a legal doctrine that allows plaintiffs who have suffered damages to recover full compensation without their damages being reduced by any amounts they received from other sources, such as insurance payments or government benefits. This principle is grounded in the idea that a victim should not be penalized by the presence of collateral sources of compensation they may utilize after an injury or loss. Therefore, under this rule, if a victim receives compensation from an insurance policy for their damages, that amount does not diminish their ability to fully recover damages from the party responsible for causing the harm.

In contrast, options like the one suggesting that damages should be reduced by outside compensation reflect a contrary principle, which does not align with the intention of the collateral source rule. Thus, the correct understanding is that victims can recover the full extent of their damages without deductions for any insurance or other compensation received, preserving their right to full recovery.