New York’s Additional No-Fault Protection Coverage – APIP & OBEL
New York State insurance companies offer two additional coverage options that act as supplements to your No-Fault coverage (AKA “PIP” – Personal Injury Protection): namely, “APIP” (Additional Personal Injury Protection) and “OBEL” (Optional Basic Economic Loss). No-Fault covers up to $50,000 for medical expenses, lost wages, and out-of-pocket costs in the event of an injurious car accident – no matter who is at fault. But many times, $50,000 is not enough to cover these expenses. When you’re purchasing motor vehicle insurance, you may be asked if you would like to add these two types of additional coverages to your policy. Adding them to your insurance policy might seem costly or unimportant at the time, but they do create an additional safety net atop of your regular No-Fault coverage. These additional coverages are well-worth it when it comes to protecting your future finances in the case of an accident which causes significant, life-altering injury.
What Is APIP Coverage?
APIP coverage supplements your No-Fault coverage, offered in increments of $50,000. Since your No-Fault covers $50,000, APIP would increase that coverage another $50,0000. APIP is similar to No-Fault in that it covers medical expenses, lost wages, and out-of-pocket expenses.
Additional coverage for lost wages is a common reason individuals purchase APIP coverage. This is because No-Fault only covers up to 80% of an individual’s lost wages up to $2,000 a month. What if you make more than $2,000 a month, though? What if $2,000 a month won’t aid you in fully making ends meet financially? APIP coverage can help with that, offering an additional 80% of $4,000 a month, which may cover your lost wages fully.
Note that when you do sign off to utilize your APIP coverage, your APIP insurance carrier retains the right to recover the money you’ve receive through it. Usually, your APIP insurance carrier will recover this money through the at-fault driver involved in your accident. However, if you have a successful personal injury claim, your APIP insurance carrier may recover this money from the award you receive.
What Is OBEL Coverage?
OBEL coverage, like APIP, supplements your No-Fault coverage beyond its $50,000. However, you can choose what is reimbursed by your OBEL coverage. You may choose to have your OBEL coverage reimburse medical bills, or you may choose to have your OBEL coverage reimburse lost wages. This coverage can only be utilized after the $50,000 limit on your No-Fault coverage has been exhausted.