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.
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