NY A06864

Allows auto insurers to offer physical damage insurance with reduced dollar deductibles, zero dollar deductibles, or deductibles that diminish over time, overriding the standard minimum deductible requirements

Requires insurers offering these alternative deductible options to disclose to policyholders how the deductible interacts with other policy provisions, additional costs, conditions for reduction or increase, and effects on premiums

Prohibits insurers from penalizing policyholders with both a premium increase and a deductible increase in response to the same claim or incident, though either one alone is permitted

Maintains the existing standard $200 deductible requirement and minimum deductible floors ($50-$100 depending on coverage type) while creating new flexibility for lower deductible options