OBEL is an acronym for Optional Basic Economic Loss. This coverage is a part of New York State Personal Injury Protection. Personal Injury Protection is commonly referred to as PIP or “No Fault” coverage. Under the no-fault insurance system, when you have an accident, your insurance provider will provide compensation for all the damages caused to you (up to the specified policy limit), without checking whether there is any fault from your side or not. The main goal of No-fault insurance is to decrease auto insurance premiums by reducing the number of vehicle accident cases in the courts. This is done by providing limited payment for losses, and by controlling recovery for pain and suffering costs. The real no fault part of your vehicle insurance policy is known as the personal injury protection (PIP).
Under New York law you are required to purchase certain minimum insurance coverage. You must have at least $50,000 worth of coverage PIP coverage on your auto policy. Personal injury Protection is used to pay for medical expenses, loss of income, and other miscellaneous expenses regardless of fault. This coverage provides such benefits as medical expenses, loss of income up to $2,000 a month or 80% of your current monthly income (whichever is less), other reasonable expenses up to $25 a day, and $2,000 in death benefit. Many carriers also offer additional personal injury protection coverage as well. The company will usually offer the insured a choice of ($25,000, $50,000, $75,000 or $100,000) in additional personal injury protection coverage.
Tuesday, August 4, 2009
Rental Vehicle Insurance in New York State - Did you know...
New York State Law formerly prohibited a rental vehicle company from selling Collision Damage Waivers (CDWs) in New York on rentals of 30 days or less of motor vehicles. A rental vehicle company was not, in most circumstances, able to hold renters liable for more than $100 in the event the rental vehicle was stolen or damaged. However, recent changes in the law now make the option of purchasing a CDW, also known as Optional Vehicle Protection (OVP) from the rental vehicle company, and also permits the rental vehicle company to hold the renter liable for the full amount of damage to the rented vehicle.
Rental companies may sell a Collision Damage Waiver, also known as “Optional Vehicle Protection” to those who do not reside in New York and state residents that are not currently insured under a private passenger automobile insurance policy. For rentals of 30 consecutive days or less, rental car companies in New York State can sell OVP, or if not purchased, charge a renter for the total value of stolen(lost) or damaged private passenger type vehicles. If you currently have a New York auto insurance policy and you rent a car for 30 days or less anywhere in the United States, its territories and possessions, or Canada, regardless of whether you have collision or comprehensive coverage on your own car, you do not need to buy a CDW from the rental car company. Coverage is currently provided without any extra charge. In the future, an insurer may elect to charge for this coverage. The insured would then have the option of rejecting this coverage.
Some credit card companies also provide some type of collision damage coverage to their cardholders for vehicles they rent with their card. When renting a vehicle, check with your credit card company to verify exactly what protection it provides and what types of vehicles are covered.
In New York, rental vehicle coverage is included in motor vehicle liability insurance policies that : insure fewer than five vehicles; and are issued on an individual or a husband and wife. However, policies insuring certain types of vehicles, such as most types of trucks, are not required to include rental vehicle coverage. Your insurer is required to provide you with information about rental vehicle coverage with your policy. This coverage is normally included automatically in your policy, but if a premium is separately charges, you have the right to reject this coverage.
Your rental vehicle coverage is not subject to the limit of property damage liability on your insurance policy. You are covered for the full amount of damages to the rental vehicle. There is no limit to the amount of coverage that must be provided under the rental vehicle coverage endorsement.
Rental Vehicle coverage should not be confused with rental reimbursement. Rental reimbursement is for the cost of renting a vehicle used as substitute transportation if your own vehicle is damaged and is temporarily out of use due to a covered loss.
Rental companies may sell a Collision Damage Waiver, also known as “Optional Vehicle Protection” to those who do not reside in New York and state residents that are not currently insured under a private passenger automobile insurance policy. For rentals of 30 consecutive days or less, rental car companies in New York State can sell OVP, or if not purchased, charge a renter for the total value of stolen(lost) or damaged private passenger type vehicles. If you currently have a New York auto insurance policy and you rent a car for 30 days or less anywhere in the United States, its territories and possessions, or Canada, regardless of whether you have collision or comprehensive coverage on your own car, you do not need to buy a CDW from the rental car company. Coverage is currently provided without any extra charge. In the future, an insurer may elect to charge for this coverage. The insured would then have the option of rejecting this coverage.
Some credit card companies also provide some type of collision damage coverage to their cardholders for vehicles they rent with their card. When renting a vehicle, check with your credit card company to verify exactly what protection it provides and what types of vehicles are covered.
In New York, rental vehicle coverage is included in motor vehicle liability insurance policies that : insure fewer than five vehicles; and are issued on an individual or a husband and wife. However, policies insuring certain types of vehicles, such as most types of trucks, are not required to include rental vehicle coverage. Your insurer is required to provide you with information about rental vehicle coverage with your policy. This coverage is normally included automatically in your policy, but if a premium is separately charges, you have the right to reject this coverage.
Your rental vehicle coverage is not subject to the limit of property damage liability on your insurance policy. You are covered for the full amount of damages to the rental vehicle. There is no limit to the amount of coverage that must be provided under the rental vehicle coverage endorsement.
Rental Vehicle coverage should not be confused with rental reimbursement. Rental reimbursement is for the cost of renting a vehicle used as substitute transportation if your own vehicle is damaged and is temporarily out of use due to a covered loss.
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