Bill > S04935

This bill modifies existing insurance law by expanding insurers' options for physical damage insurance deductibles. Currently, insurers must offer a standard $200 deductible, with options for lower deductibles as low as $50-$100 depending on coverage type. The bill now allows insurers to offer more flexible deductible structures, including reduced dollar deductibles, zero dollar deductibles, and deductibles that can diminish over time. Insurers must transparently disclose to customers how these new deductible options work, including potential cost implications, circumstances for deductible reduction or increase, and premium effects. The bill also protects consumers by prohibiting insurers from simultaneously increasing both premiums and deductibles in response to the same claim or incident, though insurers can still raise either premiums or deductibles separately. These changes give consumers more choices in how they structure their physical damage insurance policies while requiring clear communication about the details of these new deductible options.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S4935