Deductibles offer opportunities to save money on premium apart from the choices you make on how much coverage to buy. Thus, if you feel you need a high level of PIP coverage but want to reduce your premium, you can save money by agreeing to pay more out-of-pocket if you are injured in an accident.

Your insurer will pay the medical bills over the deductible amount you choose. In addition, there is a 20 percent co-payment on medical expenses in excess of the deductible, up to $5,000. That means you pay 20 percent, and your insurer pays 80 percent. Above $5,000, the insurer pays the full amount.