Bill > A06864

This bill modifies existing insurance law to provide more flexibility in physical damage insurance deductibles for automobile policies. Currently, insurers must offer a standard $200 deductible and cannot sell policies with deductibles lower than $50-$100 depending on coverage type. The new legislation allows insurers to offer reduced dollar deductibles, zero dollar deductibles, and deductibles that can diminish over time. To protect consumers, the bill mandates that insurers fully disclose the details of such deductible arrangements, including potential cost implications, circumstances for deductible changes, and impacts on premiums. Additionally, the bill prohibits insurers from penalizing policyholders with flexible deductibles by simultaneously increasing both their premium and deductible in response to the same claim, though insurers can still adjust either the premium or deductible separately. This change aims to give consumers more options in structuring their auto insurance policies while ensuring transparency in the deductible provisions.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A6864