What is Obel insurance?

Anyone who has ever faced the unfortunate circumstances surrounding a serious car crash knows that the costs involved can quickly rise. And the more insurance you have at the time of the accident, the less impact it will have on your personal expenses. OBEL insurance provides an additional protection for your auto insurance policy that can help reduce costs that you may incur if you or a family member are involved in an auto accident.

What is Obel Coverage?
What is Obel Coverage?


OBEL (Optional Basic Economic Loss) insurance is non-compulsory coverage offered to New Yorkers outside of state-mandated auto insurance for car owners. OBEL insurance is an additional guarantee for motorists above the mandatory $50,000 no-fault coverage that every vehicle owner must have under New York State law.


The OBEL supplement provides an additional $25,000 in coverage for injuries or lost wages incurred as a result of a serious accident. In addition to protecting the policyholder, OBEL also covers passengers and any pedestrians injured in a motor vehicle accident involving the policyholder or the policyholder’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 comes into force and cannot be changed. Unlike traditional auto insurance coverage, OBEL coverage allows the policyholder to choose the out-of-pocket costs he wants to be covered when the coverage is applied.

Consider carefully

There are four options to choose from that can be set up when the policy is written and paid up to $25,000. The first option is insurance for basic economic losses (wages, medical expenses). The second option includes only lost wages. And the third option includes any necessary rehabilitation including mental, occupational and physical rehabilitation. Finally, option four gives the policyholder the option to combine both the second and third options.


New York State has established laws to protect insurers against fraudulent claims by auto insurance policyholders. New York’s Fraud Law makes any individual involved in a case involving basic auto insurance or additional OBEL insurance liable if the claim is proven to be fraudulent. This crime is subject to civil penalties and fines of up to $5000 including any additional costs that may be incurred and fines.

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