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How Auto Insurance Deductibles Work in New York State

May 22nd, 2023 | 6 min read

By Daniel J. Middleton

If you’re a New York resident and aren’t educated about deductibles, you’re at risk of paying too much out of pocket for car insurance claims. This can happen if you choose a high deductible, have a loan or lease that limits your deductible options, or have a personal injury protection (PIP) deductible you’re unaware of.

Don’t let high deductibles ruin your car insurance experience.

Many New York State policyholders lack clarity and understanding about car insurance deductibles. But deductibles are a crucial part of any auto policy, as they affect how much you’ll pay in case of a claim. However, you may not know what deductibles are, how they work, or how to choose the best option for your needs and budget.

It’s possible that you’re unaware of the different types of deductibles that apply to different coverages, such as collision, comprehensive, or personal injury protection. It’s also possible that you may face limitations or surprises from your loan or lease agreements.

We understand that these factors can make deductibles confusing and frustrating and can lead to unexpected costs and hassles for you, the policyholder. That’s why we’re here to provide clear and helpful information to educate you about deductibles and help you make the best decision for your situation so you’re not overwhelmed.

We’re a professional and reliable Baldswinsville agency with expertise and knowledge that has helped hundreds of households find the best deductible options for their vehicles. We can tailor an auto policy for your situation as well.

Whether you need collision, comprehensive, or personal injury protection coverage, we can help you customize your policy and get the most value for your money.

Only savvy policyholders like you educate themselves and choose the right deductibles for added protection from financial losses in case of an accident.

In this article, you’ll learn what deductibles are, how they work, and how to choose the best option for your situation. You’ll also discover how to avoid common pitfalls and surprises that can cost you money and hassle.

Whether you need collision, comprehensive, or personal injury protection coverage, we’ll help you understand your options and make an informed decision. Read on to find out how to save money and get the most value from your car insurance policy.

What Are Car Insurance Deductibles?

If you ever bought a car, home, or health insurance policy, you’ve likely come across a deductible. But if you’ve never filed an insurance claim, you may not have experienced how it works. So, let’s explain what a deductible means.

A deductible is a specific amount of money you need to pay before your insurance coverage begins. Usually tied to auto or health insurance, deductibles are the financial buffer between you and the carrier.

Health insurance deductibles typically reset on a yearly basis, while auto insurance deductibles typically reset after each claim. This means that if you have an accident and your car is damaged, you’ll have to pay your deductible again if you have another accident in the same year.

There are some exceptions to these general rules. For example, some health insurance plans have a “continuous deductible” feature, which means your deductible doesn’t reset if you don’t have any medical expenses in a year.

Additionally, some auto insurance companies offer “accident forgiveness” programs, which can waive your deductible if you have a clean driving record and are not at fault for an accident.

Understanding Deductibles on Auto Insurance

Three types of New York auto insurance coverages may have deductibles:

  1. collision
  2. comprehensive, and
  3. personal injury protection (PIP)


Collision coverage pays for the damage to your car if you hit something while driving. You always have to pay a deductible before the insurance company pays the rest of the claim. The higher your deductible, the lower your premium, but also the more you have to pay out of pocket.


Comprehensive coverage pays for the damage to your car caused by something other than a collision, such as a tree limb falling on your hood. It works the same way as collision coverage: you pay a deductible first, and then the insurance company pays the rest.

Personal Injury Protection (PIP)

Personal injury protection (PIP) coverage pays for the medical expenses of you and your passengers if you’re injured in an accident. It also covers pedestrians you may hit with your car.

In New York State, PIP coverage is mandatory and may have a deductible. This means you may have to pay some of the medical bills yourself before the insurance company pays. This can be a nasty surprise for many people who don’t know about it.

Factors to Consider When Choosing an Auto Insurance Deductible

You have some flexibility in choosing your deductible amount, but there are some limits and factors to consider, such as these:

  • Most insurance companies offer deductibles ranging from $100 to $2,000 for comp and collision coverages. Some may go higher, but that’s rare.
  • If your car is financed or leased, you may have to choose a lower deductible. Most lenders require you to have comp and collision coverages and limit your deductibles to $1,000 or less. For leases, the limit is often $500.
  • Your deductible affects your premium. The lower your deductible, the higher your premium because you’re shifting more risk to the carrier. The higher your deductible, the lower your premium, but also the more you have to pay if you make a claim.
  • Deductibles are usually in multiples of $50 or $100. The most common options are $250, $500, or $1,000. You can’t choose an odd number like $327.
  • You can have different deductibles for comp and collision coverages. Some people prefer a lower deductible for comprehensive coverage, which covers non-collision damage such as falling objects or vandalism. You can also have different deductibles for different cars on your policy.
  • Glass coverage is part of comprehensive coverage and may have a separate deductible. Many people opt for a zero-dollar deductible for glass coverage, so they don’t have to pay anything if their windshield breaks. However, you should check with your agent or policy to make sure you have this option; otherwise, your glass claim will be subject to your comprehensive deductible.

For more information on comp and collision coverages, read our article explaining the differences between them.

How PIP Insurance Works in New York

Personal injury protection (PIP) insurance provides coverage for your medical expenses and those of your passengers in the event of an accident, regardless of who was at fault, which is why it is also referred to as “no-fault” insurance.

PIP also covers pedestrians who are hit by your car. PIP is the first coverage used for medical bills before your health insurance kicks in.

In New York, you’re required to have personal injury protection (PIP) insurance, which may have a deductible. The maximum deductible for PIP is $200 per person. For example, if three people in your car needed medical care, you would have to pay $600 out of pocket. This applies even if you’ve met your health insurance deductible.

The PIP deductible is the same for all the cars on your policy. You can choose to waive the PIP deductible and have no out-of-pocket costs for medical claims. This is a good idea because the savings from having a deductible are very small.

However, some insurance companies and agents may add a PIP deductible to your quote or policy by default, so you should check carefully and ask to remove it if you don’t want it.

Learn more about personal injury protection/no-fault insurance by reading our comprehensive article about PIP.

Auto Insurance Quote Sheet Graphic

Choose the Right Deductible for Your Auto Insurance

If you ignore the advice in this article, you may end up paying too much for your auto insurance policy. Critical points will be missed about how deductibles function. You may also face unexpected costs and inconveniences if you have a claim.

Knowing when a deductible is too high or too low for your needs and budget may escape you. You may also have a personal injury protection (PIP) deductible you don’t know about. You may not be able to customize your policy to suit your needs and preferences.

But by following the points in this article, you can choose the best deductible option for your auto insurance policy. You’ve learned how deductibles work, how they affect your premium, and how to avoid common insurance snags and unforeseen events.

Applying this info will allow you to avoid the surprise of a high deductible and better prepare you for the claims experience.

You’ll also discover how to customize your policy to suit your needs and budget. This will help you save money and get the most value from your auto policy while enjoying protection from financial losses in case of an accident.

You’ll be a savvy and smart policyholder who knows how to get the best coverage for your car.

Choosing the right deductible for your auto insurance can be tricky. You want to balance your budget and your protection. That’s why we offer you different options and prices to compare. We can help you find the best coverage for your needs and budget.

If you’re interested in getting a quote with different deductible options, just click the Get Quote button below. You’ll be contacted by one of our friendly and knowledgeable agents who can answer your questions and guide you through the process.

Our agents are experts in car insurance deductibles and can help you make an informed decision.

You can also learn more about auto insurance by reading our comprehensive article on getting proper auto insurance coverage. It covers topics such as coverages, discounts, and tips for saving money. You’ll find it useful and informative.

Get a Quote

Daniel J. Middleton

Daniel is an accomplished content creator. He has been working in publishing for almost two decades. Horan Companies hired Daniel as its content manager in November 2022. The agency entrusted its messaging to him. Since then, Daniel has written insurance articles, service and pillar pages, and more. All in an effort to educate CNY readers. He's helping them understand the world of insurance so they can make informed decisions.