Anyone that has been faced with the unfortunate circumstances surrounding a serious automobile accident knows that the costs involved can quickly add up. And the more coverage that you have at the time of the accident, the less of an impact it may have on your personal expenses. OBEL coverage offers an added protection to your auto insurance policy that can help cushion the expenses that you may incur if you or a family member is involved in an auto wreck.
OBEL coverage (Optional Basic Economic Loss) is an optional insurance that is offered to New York residents in addition to the auto insurance coverage that is mandated by the state for car owners. OBEL coverage is a supplement that insures motorists above the required $50,000 no fault coverage that every vehicle owner must posses by law in New York State.
The OBEL supplement offers an additional $25,000 of coverage for injuries or lost wages that are incurred do to a serious accident. In addition to protecting the policy owner, OBEL also covers passengers and any pedestrians that are injured during a motor vehicle accident that is associated with the policy holder or policy holder's immediate family.
It is important for the owner of OBEL coverage to understand that specific choices need to be made at the time the policy is put into effect, which can not be altered. Unlike traditional auto insurance policy coverage's, OBEL coverage allows the policy holder to choose which out of pocket expenses he would like to be covered for when the coverage is put in place.
There are four options to choose from that can be set in place when the policy is written, and paid up to the $25,000 maximum. The first option is coverage for basic economic loss (wages, health expenses). The second option covers lost wages exclusively. And the third option covers any rehabilitation that is necessary including psychiatric, occupational and physical rehabilitation. Finally, option four gives the policy holder the choice of selecting both the second and third options in combined.
New York State has established laws to protect insurance companies against fraudulent claims made by auto insurance policy holders. The New York Fraud Law holds any individual involved in a case involving basic auto insurance coverage or OBEL coverage supplements liable if the claim is proven to be fraudulent. The crime is subject to civil penalty and punishable up to $5000 including any additional costs that may be incurred and fines.