U3-L1-P1

Unit Three – Automobile

Chapter Overview

In unit three the student will learn the basics of auto insurance.  Auto insurance is the most heavily tested area on Florida state insurance exams.  Auto insurance questions make up 20-25% of the state exam.  This unit covers two state auto laws – The Florida Financial Responsibility Law and The No-Fault Law. It also covers the Personal Automobile Policy.

This unit concludes with a unit examination.  A passing grade of 70% on each unit exam is required to take the Final Exam.  An overall grade of 70% is required to pass the pre-licensing course.

Auto insurance is considered the most important of Personal Lines property and casualty insurance.  This is because everyone who drives a vehicle is required to carry auto insurance.  The number of registered vehicles in Florida increases each year.  As of 2014 there was close to 20 million vehicles registered in Florida, an increase of 30% in the last decade. And that number doesn’t include the vehicles of those visiting the state.

Registered Vehicles in the State of Florida 2002-2014

Time PeriodRegistered Vehicles
2014 19,642,100
2013 18,723,528
2012 18,447,060
2011 18,420,803
2010 18,476,875
2009 18,657,711
2008 18,880,384
2007 16,231,339
2006 16,077,754
2005 15,541,263
2004 15,071,857
2003 13,983,028
2002 13,776,255

 

This number also doesn’t include unregistered vehicles, many of which do not meet the minimal requirement for carrying automobile insurance. Unregistered and uninsured vehicles pose a financial threat to Florida drivers who are not adequately insured.

In this unit we will examine what constitutes “adequate” insurance coverage. As you learn more about Florida auto laws and the Personal Auto Policy, you may realize the importance of re-examining your Personal Auto Policy. Taking a look at your current auto coverage is a good way to apply your study of this unit to real life situations.

Auto insurance is divided into two sections.  The first section if Florida Automobile Laws and the second section is the Personal Auto Policy.

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Auto insurance questions make up 20-25% of the ____ exam.