home : Florida Auto Insurance Legal Requirements

Florida Auto Insurance Regulations

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A u t o m o b i l e I n s u r a n c e
a guide for consumers

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Dear Fellow Floridian:
Insurance coverage is an integral part of a solid
fi nancial foundation. Insurance can help us recover
fi nancially after illness, accidents, natural disasters
or even the death of a loved one. But with the wide
variety of insurance products available, choosing
the correct type and amount of coverage can be
a challenge. The policies and laws that regulate
fi nancial matters often change, so it is essential to be
aware of new developments.
The Florida Department of Financial Services
publishes a variety of consumer guides to help
you understand how different types of insurance
policies work. These publications defi ne some of the
industry's terminology and outline your rights and
responsibilities. Each guide also contains basic information and tips on selecting an
insurance agent and company.
Topics include homeowners, automobile, life, health, small-business and many other
types of insurance. The Department also publishes guides and brochures covering
other fi nancial issues such as mortgages, securities and identity theft.
You can receive any of our publications by calling the Florida Department of
Financial Services Consumer Helpline toll-free at 1-800-342-2762. They may also be
downloaded from our Web site at www.fl dfs.com. For availability of Spanish versions of
these guides, please check the Web site.
If you have questions after reading this guide, please call our Consumer Helpline toll-
free at 1-800-342-2762 between 8 a.m. and 5 p.m. (Eastern time) Monday through
Friday. The hearing impaired may use a TDD to call 1-800-640-0886 during these
hours. You may also contact the service offi ce in your area (listed inside the back cover
of this guide).
Sincerely,
Alex Sink
Chief Financial Offi cer
State of Florida

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C o n t e n t s
4. What Insurance Must I Have?
21. Actions to Take Before and
6. Optional Limitations of PIP
After Accidents
8. What Other In sur ance Can I Buy?
25. How to Select an Insurance Agent

10. What About Vehicle Service

25. How to Select an Insurance
Warranties?
Company

11. Insurance Requirements for
26. What About Adjusters?
Special Cases
27. Your Rights and Responsibilities

12. Insurance Exemptions for
28. Insurance Discrimination Against
Special Cases
Victims of Abuse

13. Factors That Affect Premiums
29. Community Outreach Programs

15. Other Factors Affecting Premiums
30. Protecting Your Privacy

16. What About Premiums?
31. Insurance Fraud Costs Us All!

18. What About Surplus Lines Insurers?
32. Glossary

19. What About Cancellation,

Nonrenewal or Policy Trans fer?
NOTE: Most insurance rates and forms in Florida are regulated by the Offi ce of Insurance
Regulation. Although it is administratively housed within the Department of Financial Services,
OIR is a separate entity that reports to the Florida Cabinet. Because DFS handles consumer-
related insurance matters, only DFS is mentioned throughout this publication. Consumers
should remember that DFS is their point of contact for all insurance problems and questions.
TDD Users Only
If you have an insurance

Telecommunications Device for the Deaf
question or problem, call the
1-800-640-0886
CONSUMER
Internet
Browse the Florida Department of
Financial Services Web site at
1-800-342-2762
www.fldfs.com
The Florida Department of Financial Services distributes this guide for educational purposes only;
it does not constitute an endorsement for any service, company or person offering any product or service.
This paper contains 50
percent recycled fi ber.
Copyright Š2006 Florida Department of Financial Services
You may obtain this guide in alternative formats such as audio recording or large print by calling our
Consumer Helpline toll-free at 1-800-342-2762. You may also download this guide through the Internet at
www.fl dfs.com; Tele com mu ni ca tions Device for the Deaf (TDD) users may obtain it by calling 1-800-640-0886.

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What Insurance Must I Have?
Even the safest and most cautious drivers are Responsibility Law. Factors that trigger this re-
vulnerable to auto accidents. Your best defense quirement may include a conviction for a traffi c
is to have auto insurance. This guide outlines violation or failure to pay for accident damage.
the coverage you must have as a Florida resident For more information, see page 11.
and explains your other insurance options.
If you are required to carry this coverage, an
insurance company licensed to do business in
Florida must issue it. If you use a company
representative, he or she must be licensed as an
insurance agent by the State of Florida, or an
agent licensed to sell insurance in Florida must
countersign the coverage.
The Department of Highway Safety and Motor
Vehicles will suspend your driver license, vehicle
tag and registration if your insurance company
cancels your PIP and PDL coverage and you fail to
obtain new coverage. You must then provide proof
Florida law requires that you carry a minimum of insurance and pay a reinstatement fee of:
of $10,000 of personal injury protection (PIP)
and $10,000 of property damage liability (PDL) ˇ $150 for the fi rst offense
if you own a motor vehicle in Florida. This ˇ $250 for the second offense and
applies to self-propelled vehicles, with four or ˇ $500 for each additional offense
more wheels, that are registered and licensed in
within a three-year period.
the state. Florida law requires you to carry the
insurance continuously throughout the licens- This must be done to get your license, tag and
ing and registration period.
registration reinstated.
Also, any part-time or seasonal resident living Note: You are required to maintain your correct
in Florida at least 90 days of the year is required address on your Florida driver license. You have
to carry PIP and PDL insurance. The 90 days 10 days from the date you change your address
do not have to be consecutive. For more in- to notify the Department of Highway Safety
formation about these requirements, contact and Motor Vehicles. If you don't, there could be
the Department of Highway Safety and Motor a penalty of $30.
Vehicles, Bureau of Financial Responsibility, at
(850) 922-9000.
Personal Injury Protection or PIP
(also called no-fault coverage)
If you have been in an accident, you also may be Lawmakers designed PIP to help reduce the
required to carry bodily injury liability cover- need for Floridians to sue to cover injuries re-
age of at least $10,000 per person and $20,000 sulting from automobile accidents.
per occurrence to comply with the Financial

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If you get into an automobile accident, PIP cov- In Florida, this coverage protects you while
ers you up to the limits of your PIP coverage, in your own or someone else's vehicle. It also
regardless of fault. The "at fault" party is the protects you as a pedestrian or bicyclist if you
person(s) determined to be the cause of the ac- suffer an injury in an accident involving a motor
cident.
vehicle while in Florida.
Your PIP will cover your child, if that child is a PIP covers only you and other members of
resident of your household, and other resident your household for accidents occurring outside
members of your household. It also covers your Florida but within the United States or Canada.
child if he or she suffers an injury while riding In such cases, you must be driving or riding in
a school bus.
your own vehicle. PIP does not cover persons
other than you and members of your house-
PIP pays:
hold.
ˇ 80 percent of medically necessary expenses
Property Damage Liability (PDL)
ˇ 60 percent of lost wages
This coverage pays for certain damage (up to the
ˇ 100 percent of replacement services such as limit of the policy) that you or anyone covered
child care, housekeeping or yard work and
under your policy cause to another person's
ˇ $5,000 for death benefi ts.
property through the use of an automobile. It
only covers damage for which you or anyone
For a higher premium, you may (in some cases) insured under your policy are legally liable.
The damage may involve a parked, running or
ˇ amend your PIP to increase medical expenses rolling automobile. The term property is not
to 100 percent and lost wages to 80 percent; or
limited to another vehicle, and may include a
ˇ increase your minimum limits from $10,000 to fence, telephone pole, building or animal. This
$20,000 or more. Some companies do not offer
increased limits, but will offer other options.
For accidents occurring in Florida, PIP covers
you and members of your household who do
not own a vehicle of their own, certain passen-
gers who lack PIP, and certain licensed drivers
who drive your vehicle with your permission.
People riding in your vehicle who carry PIP will
receive coverage under their own PIP for their
injuries. Your PIP will cover a person injured in
your vehicle who otherwise lacks access to PIP
or does not own a vehicle. However, your PIP
will not cover an injured person who owns a coverage may apply even if you drive someone
vehicle but lacks PIP.
else's automobile. The terms and conditions of
your policy determine whether PDL coverage
applies to anyone using your vehicle. This cov-
erage does not require a deductible, but some
insurance companies offer one.

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Optional Limitations of PIP
When you buy a policy, you have the option to PIP offers a benefi t of 80 percent of reasonable
select a higher deductible and/or exclude dis- medical expenses, up to the limits of your policy.
ability benefi ts (loss of wages). A premium re- When a claim is fi led, if you have a PIP deduct-
duction will result from the selection of one or ible, your insurance company will subtract it
both of these options. These changes can apply from the available benefi t or total amount you
to you alone, or to you and all dependent rela- collect. However, a new Florida law says the date
tives living with you. Check with your agent to that the policy was written or renewed may af-
determine if the increased risk of these changes fect the amount of your benefi t. See the follow-
is worth the savings.
ing examples.
PIP Deductibles
Calculating PIP Benefi ts
A deductible provision in an insurance contract
and Deductibles
specifi es the amount of money a policyholder If your policy has a PIP deductible, the method
must pay per insurance claim. After an accident, used in calculating your benefi t is shown in the
you pay the deductible, and your insurance examples below.
company pays the remainder of the approved
claim according to the policy provisions. Usu- Example 1
ally, the higher a policy's deductible, the lower Policies With Deductibles Issued or Renewed Be-
the insurance premium.
fore October 1, 2003
If your policy was issued or renewed before
October 1, 2003, the PIP benefi t is 80 percent
of your medical costs, less your deductible. For
example, if you owe $10,000 in medical bills,
your available PIP benefi t will be 80 percent of
those costs, or $8,000. If your policy carries a
$1,000 deductible, your insurance company will
subtract this amount from the $8,000 available
benefi t. Your company will pay $7,000, and you
will be responsible for the remaining $3,000. See
the calculations below.
You are not required to have a deductible on $10,000 ....amount owed in medical bills
your PIP coverage. That is your choice. If you x .8 ....80% available benefi t offered by PIP
choose a PIP deductible, you may elect one that $8,000
applies to only you, or to you and other mem- -$1,000 ....subtracted deductible amount
bers of your household. The deductible will not $7,000 ....amount company will pay*
apply to anyone else, even when they are cov-
ered by your PIP. Deductibles are not applied to *You are responsible for the remaining $3,000.
reduce the amount of death benefi ts.

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Example 2
Exclusion of Disability Benefi ts
Policies With Deductibles Issued or Renewed On
(loss of wages)
or After October 1, 2003
Disability benefi ts (loss of wages) are consid-
ered an optional exclusion in PIP. However, you
If your policy was issued or renewed on or after should carefully consider all your options before
October 1, 2003, the deductible is subtracted electing this or any other exclusion of benefi ts. It
from your medical costs before the 80 percent is advisable that if you or your dependents who
PIP benefi t is calculated. For example, if you live with you are employed, you may not wish to
owe $10,000 in medical bills and your policy elect this exclusion, since lost wages will not be
carries a $1,000 deductible, the $1,000 is sub- payable in the event of an accident.
tracted fi rst from the total medical bills, leav-
ing $9,000. The available PIP benefi t will be 80
Special Notes on PIP Deductibles
percent of the remainder, or $7,200. You will be Although you can choose a deductible in order
responsible for the remaining $2,800. See the to save money on premiums, it may not be the
calculations below.
best option. For example, if an accident occurs,
you would be responsible for paying the deduct-
$10,000...... amount owed in medical bills
ible amount. It is important to know that the
-$1,000...... subtracted deductible amount
premium reduction is very small for a higher
$9,000
deductible. Understand your options when pur-
x .8 ......80% available benefi t offered by PIP
chasing PIP coverage, and ask for several quotes
$7,200...... amount company will pay**
on various deductible amounts as well as a non-
deductible quote.
**You are responsible for the remaining $2,800.
Example 3
Policies With No Deductibles
If your policy does not have a PIP deductible, it
does not matter when it was issued or renewed
because the calculation is straightforward. For
example, if you owe $10,000 in medical bills, the
available PIP benefi t will be 80 percent of those
costs, or $8,000. You will be responsible for the
remaining $2,000. See the calculations below.
$10,000 ....... amount owed in medical bills
x .8 ....... 80% available benefi t offered by PIP
$8,000 ....... amount company will pay***
***You are responsible for the remaining $2,000.

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What Other Insurance Can I Buy?
Florida law does not require you to buy any of who causes the accident. It does not cover
insurance except PIP and PDL, unless the injuries to people or damage to property other
Department of Highway Safety and Motor than your covered automobile.
Vehicles requires you to meet certain fi nancial
obligations.
Comprehensive
This coverage pays for losses from incidents
Many drivers buy additional coverage, such as other than a collision, such as fi re, theft, wind-
bodily injury liability, collision, comprehensive, storm, vandalism or fl ood. It also covers dam-
uninsured motorist, medical payments, towing, ages caused by falling objects or hitting an
rental reimbursement, and accidental death animal.
and dismemberment. Some companies do not
offer all of these options. Florida law prohibits Your insurance company will not charge you a
an insurance agent or company from requir- deductible for windshield replacement under
ing you to buy any of these additional types of comprehensive coverage. Florida law requires
coverage, even though some of these coverages this waiver to encourage drivers to replace
may offer more protection. The law prohibits an cracked or broken windshields immediately to
insurance company from forcing you to obtain avoid a major driving hazard.
or buy optional coverage to secure the required
coverage. Also, an insurance company may
Uninsured/Underinsured
not offer premium fi nancing for such options.
However, your lender may require you to carry
Motorist (UM)
comprehensive and collision coverage if you fi - This coverage pays for bodily injuries to you,
nanced your vehicle.
your family members and any other person oc-
cupying your covered automobile, should they
Bodily Injury Liability
be caused by the negligence of an uninsured or
This coverage pays for death or serious and per- underinsured motorist. The following are ex-
manent injury to others when you are legally li- amples in which UM coverage may apply:
able for an accident involving your automobile.
Your insurance company will pay for injuries ˇ if the at-fault party has no liability insurance
up to the limits of your policy and provide le- ˇ if the at-fault party has liability coverage
gal representation if you get sued. In particular,
inadequate to pay for the injuries incurred or
your insurance company may pay for injuries ˇ if injuries result from a hit-and-run vehicle.
caused by you or anyone covered by your policy,
even when driving someone else's vehicle. Your UM pays for medical expenses and lost wages
policy may also cover others who drive your (after your PIP coverage is exhausted) that you
automobile with your permission.
and your passengers may incur. This coverage
also includes payment for pain and suffering
Collision
if you have a permanent injury or death. Un-
insured motorist insurance comes in stackable
This coverage pays for repair or replacement of and nonstackable coverage. Companies must
your vehicle if it collides with another vehicle, offer stackable coverage, but may or may not
fl ips over or crashes into an object, regardless offer a nonstackable option.

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Stackable
applies whether you are in your automobile or
Stackable coverage means that you may combine someone else's, or if you are hit by an automo-
the coverage limits for each automobile insured bile while walking or bicycling. Since PIP covers
under your policy. For example, you may insure only 80 percent of medical expenses, medical
three autos and obtain stackable coverage with payments insurance could cover the remain-
limits of $10,000 per person and $20,000 per ing 20 percent, and possibly the PIP deductible,
accident for each auto (known as 10/20 limits). depending on the policy provisions. Medical
Your stackable, or combined, coverage will total payments will also cover the amount in excess
$30,000 per person and $60,000 per accident of the PIP limit, up to the limit of the medical
(see example). If these policies were nonstack- payments benefi ts.
able, then the limit of coverage for each vehicle
would be $10,000 per person and $20,000 per
Towing
accident. Insurance companies may offer non- You may add towing and road service to your
stackable coverage at a reduced cost, since they auto insurance. But your insurance company
will only pay the maximum amount allowed for may cancel your policy for too many towing
one insured automobile.
claims, even if you have no accidents.
Example
Rental Reimbursement
Three automobiles insured with stackable cov- You may receive reimbursement for auto rental
erage*:
up to a specifi ed limit, which is contained in
$10,000 x 3 = $30,000 per person
your policy. It applies if you get into an accident

$20,000 x 3 = $60,000 per accident
with your own automobile and can no longer
drive it.
*Represents coverage for each auto
If another driver causes an accident, the at-fault
Medical Payments
party's liability coverage may reimburse you for
This coverage pays for medical expenses for ac- renting a vehicle similar to your own. However,
cidental injury up to the limit of your policy. It the other party's insurance company might have
covers your medical expenses, plus those of your a maximum amount per day that it will pay. In
family members or passengers, regardless of most cases you must buy collision coverage be-
fault (unlike bodily injury liability insurance). It fore you can buy rental reimbursement.

CONSUMER ALERT
ceive a copy of the separate application with its
Optional Coverages
stated costs as a receipt for membership.
A motor club membership usually includes
towing and rental reimbursement. A sepa- You should carefully consider whether the
rate company will usually issue this optional benefi ts of a motor club, accidental death and
membership, which is not the same thing as an dismemberment coverage or other options jus-
insurance policy.
tify their cost. Florida law does not require you
to carry such coverage. The law prohibits an
If you want to buy a membership along with insurance company from forcing you to obtain
an auto policy, make sure your insurance agent or buy optional coverage to secure the required
or company representative marks it as optional coverage. Also, an insurance company may not
coverage on any paperwork. You should re- offer premium fi nancing for such options.

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What About Vehicle Service Warranties?
The value of a service warranty depends upon After receiving your policy, be sure to read the
how well it suits your needs and your chances of exclusion section. The Florida Department of
actually using it.
Financial Services regulates service warranty
contracts. You may call the DFS Consumer
Companies offer vehicle service warranties for a Helpline toll-free at 1-800-342-2762 to fi nd out
specifi ed length of time and only ensure repair if a company is authorized to sell warranties.
or replacement of items defi ned in your con-
tract. Before you sign a contract, read it and ask
for necessary explanations.
You should ask the following questions to help
avoid confusion:
ˇ Will the service contract require more
maintenance by the vehicle owner than the
manufacturer recommends?
ˇ Will the company that sells the service contract
also administer it?
ˇ Will the service contract provide coverage The Florida Insurance Guaranty Association
after the manufacturer's warranty expires, and pays losses to policyholders when certain in-
to what extent?
surance companies become insolvent. The as-
sociation does not cover warranty companies if
ˇ Will the vehicle owner be required to keep they fail, in which case you have no guarantee
receipts?
of reimbursement for claims or unearned pre-
miums.
ˇ Does the extension begin at the time the
contract is purchased or on the vehicle's initial
date of sale?

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Insurance Requirements for Special Cases
Financial Responsibility Law
What if I Finance My Vehicle?
In some cases, Florida law requires drivers to You may have to buy comprehensive and colli-
carry property damage and bodily injury li- sion insurance if you fi nance your vehicle.
ability insurance. This requirement applies to
drivers convicted of certain traffi c violations, A lending institution cannot require you to buy
such as driving under the infl uence of alcohol or insurance from a particular insurance company,
drugs. It also applies to drivers who are involved agent or lender. (Some lending institutions
in an accident but cannot pay for damages or market coverage actually issued by insurers.)
are uninsured.
Most loan agreements will require insurance
to protect a fi nanced vehicle. If you do not
Such drivers may have to provide proof of in- maintain coverage, the lending institution will
surance in the amounts of:
buy insurance to protect its interests, but must
give you prior notifi cation. The lender may then
ˇ $10,000 per person
add the insurance premium cost to your loan
by increasing the number and/or amount of
ˇ $20,000 per occurrence of bodily injury your monthly payments. Generally, you pay less
liability
when you buy your own coverage. You should
keep coverage records until you pay off your
ˇ $10,000 in property damage liability or
debt and receive the title. Keep proof of cover-
age in your automobile, since you may need it
ˇ a combined single limit of $30,000 per at any time.
occurrence.
What if I Lease My Vehicle?
For more information on Florida's Financial You must meet certain insurance requirements
Responsibility Law, contact:
if you lease a vehicle for more than one year in
Florida. State law requires you to carry one of
Bureau of Customer Services
the following coverage plans:
Department of Highway Safety
and Motor Vehicles
ˇ Bodily injury liability of at least $100,000 per
Neil Kirkman Building
person, $300,000 per occurrence and $50,000
Room A-232, 2900 Apalachee Parkway
of property damage liability or
Tallahassee, FL 32399-0500
(850) 922-9000
ˇ Combined bodily injury and property damage
liability of at least $500,000.
What if I Drive a Motorcycle?
Insurance companies do not offer PIP for mo-
torcycle owners. However, you may buy any
other type of insurance coverage, including
medical payments. Recent changes in Florida
law allow motorcycle drivers 21 and older to

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operate or ride a motorcycle without wearing
What About Part-Time Residents,
protective headgear as long as they have at least
Military Personnel and Salespeople?
$10,000 in appropriate health insurance.
Any person who has a motor vehicle in Florida
for more than 90 days during a 365-day period
Each year in Florida, there are more than 5,700 must buy PIP and PDL insurance. The 90 days
motorcycle accidents, resulting in more than need not occur consecutively.
5,000 injuries and 250 deaths.
If you use your personal car for a commercial
or business purpose, even for part-time pizza
deliveries, your insurance company may not pay
your claim if you are involved in an accident.
Check with your insurance agent to learn the
specifi c limitations of your policy.
If you are in the military and have a Florida ve-
hicle garaged out of state, send a copy of your
orders and a copy of the insurance policy in
the state in which you are based to the Florida
Department of Highway Safety and Motor Ve-
For more information, consult your insur- hicles. This will prevent the suspension of your
ance company or agent, or call the Consumer tag and license.
Helpline toll-free at 1-800-342-2762.
What if I Recently Moved to Florida?
What About College Students?
As a new Florida resident, you should fi nd an
Florida residents who attend college in an- honest and reputable Florida auto insurance
other state but use a motor vehicle registered agent to help you. (See page 25 for specifi cs
in Florida must carry PIP and PDL coverage on on how to select an agent.) Contact your local
the vehicle. The state where the student attends driver license offi ce for information on obtain-
school may also mandate additional automobile ing a driver license and auto registration.
insurance requirements.
Insurance Exemptions for Special Cases
What if I'm Called to Active Duty?
What if I Rent a Vehicle?
A member of the U.S. armed forces may receive You can purchase extra insurance for a rental
orders to serve active duty outside the United car when you rent a vehicle. And while this
States in an emergency situation. This type of insurance can be convenient if anything hap-
situation exempts you from carrying PIP and pens while you are driving, it can be expensive.
PDL as long as you remain outside the United Review your rental agreement to be sure that
States and allow no one else to use your auto- you are not paying for the insurance unless you
mobile. You must request this exemption from elected to purchase it.
your insurer in writing and notify the Florida
Department of Highway Safety and Motor Ve- Florida law allows a rental agency to require
hicles (DHSMV).
that the lessee's insurance coverage is primary.

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This information should be stated in 10-point conditions. In this case, you may not need a
type on the rental agreement contract. Check separate collision damage waiver.
your policy to determine if your rental vehicle
is covered.
To determine if your policy will provide liability
coverage for damage caused to another vehicle
Automobile rental companies often sell collision while you are driving a rental vehicle, check
damage waivers that offer some features similar your policy or contact your insurance company
to insurance. They do not, however, fall under or agent.
the regulatory authority of the Department of
Financial Services.
In addition, some credit card companies auto-
matically include collision damage waivers for
If your policy includes collision coverage or vehicle rental purposes. Most credit companies
PDL, it may cover damages to a rental vehicle limit the number of days for coverage. Check
driven by you, depending upon its terms and with your company before renting a vehicle.
Factors That Affect Premiums
Insurance companies use a variety of factors to All insurance companies authorized to sell auto
determine a policyholder's likelihood of expe- coverage in Florida contribute to the FAJUA. For
riencing an accident or loss. The cost of auto more information, call your insurance agent.
insurance for different drivers varies, as the level
of risk for the insurance company varies. Not
all companies consider the same factors. Some
companies attach more signifi cance to certain
factors than others. Here are the main factors
that may affect your premiums.
Driving History, Including Past
Accidents and Violations
Insurance companies consider drivers who have
had an accident or received convictions for driv-
ing violations as high risks. Companies may
charge such drivers higher rates for automobile
insurance than those with driving records free
Type of Vehicle, Including Model,
of accidents and violations.
Year and Value
Expensive or high-performance vehicles and
Each company has underwriting guidelines to some sports cars cost more to repair or replace.
determine what kind and how many accidents Such vehicles may also be inviting targets for
or violations during a specifi ed period consti- potential thieves or vandals. Insurers will usu-
tute a high-risk driver. High-risk drivers who ally charge a higher premium for coverage of
cannot get auto insurance through ordinary these vehicles.
methods may obtain coverage through the Flor-
ida Automobile Joint Underwriting Association
(FAJUA), a risk pool.

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Territory
Even if nothing else changes in your driving
Where you keep and drive your vehicle also in- situation, your premium could still increase due
fl uences your premiums. Insurers consider the to infl ation. Insurance companies must raise
vehicle and population density, road conditions, premiums so they can continue to pay claims
repair rates, medical and hospital costs, and the when other costs increase, such as the price of
number of accidents in a particular area. For ex- auto repairs, medical services, etc.
ample, urban drivers may pay higher premiums
than rural drivers. The rates used for territories,
even those close to each other, may differ be-
cause of these and other factors.
Gender
Statistics show that males suffer more than twice
as many fatal accidents as females. Insurance
companies typically charge higher premiums
for males, especially those younger than 25.
Age
Statistically, Florida drivers younger than 25 or It pays to shop around before buying insurance,
older than 65 make up a larger share of people since prices can differ among companies. In ad-
involved in accidents. Insurance companies use dition to cost, you should also carefully consider
statistics when computing rates to justify higher other factors such as service and dependability.
premiums for drivers in these age ranges.
A company charging a low premium may not
prove to be such a good deal if you cannot get
Credit History
your claims paid in a timely manner or receive
Insurance companies are permitted to use credit help when needed.
history as one of the factors that determine risk.
Your credit history may affect your premium
Vehicle Usage
amount.
The distance you live from your workplace or
school may affect the cost of your insurance be-
Policy Changes
cause it determines your daily exposure to risk.
Changes to your policy can also affect your Increasing or decreasing the number of miles
rates. Such changes include:
driven each year can cause your premiums to
increase or decrease. Finally, changing vehicle
ˇ modifying your coverage
usage (i.e., from personal to commercial) can
ˇ changing your deductible
affect the amount you must pay for coverage.
ˇ adding or removing a vehicle from your
policy
ˇ replacing an older vehicle with a newer one
ˇ adding a new driver and
ˇ moving to a new area (either more or less
congested).

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pg. 14
pg. 15
Other Factors Affecting Premiums
Insurance companies give discounts that may
Desirable Automobile
not apply to the cost of the entire policy, but When shopping for an automobile, keep in
only to the cost of a portion of the coverage. mind that insurance companies usually charge
Each type of coverage should be listed as a sepa- higher premiums for autos that cost more to
rate item on your billing statement.
repair or offer less passenger protection from
accidents. Companies may also charge more for
Mature Driver
vehicles that tend to cause more damage when
Drivers 55 or older may qualify for a discount involved in accidents. For example, insurers
by successfully completing an accident preven- may charge higher premiums for certain sport
tion course approved by the Department of utility vehicles (SUVs). Autos such as sports
Highway Safety and Motor Vehicles. To qualify, cars that are inviting targets for thieves also cost
you must keep your driving record free of ac- more to insure.
cidents and violations after taking the course.
For more information, contact the AARP at
1-888-687-2277, or the National Safety Council
at (630) 285-1121.
Retiree
If you have retired or otherwise do not earn
wages, you may consider excluding coverage for
wage loss from your PIP insurance. You should
take into account how this step will affect other
family members living with you. Under Florida
law, you may elect a PIP deductible in combina-
tion with the exclusion of wage-loss coverage.
Check with your insurance company or agent
Younger Driver
for more information.
It usually costs parents less to insure a teen-ager
who occasionally drives the family automobile
Deductible
on their policy rather than buy a separate policy.
You may choose a deductible on your PIP, com- If the teen-ager is considered a primary driver of
prehensive and collision coverage. You may the vehicle, then the insurance cost will increase.
choose to increase your deductible, but remem- However, a teen-ager who obtains a title in his
ber that you must pay it each time you submit or her own name may have to buy insurance
a claim. Carefully consider such factors as how under a separate policy. A young driver might
much of a discount you will receive for a given qualify for reduced rates if he or she completes a
deductible and how much you can afford to pay driver's education course and achieves a certain
for each claim.
grade point average in school.

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pg. 16
pg. 17
Good Driver
Nondrinker and Nonsmoker
Many companies offer discounts to policyhold- A few companies offer discounts for drivers
ers with driving records free of accidents and who refrain from drinking alcohol or smoking
violations for an extended period of time.
tobacco products.
Older Vehicle
Changing Cars
You may choose to drop collision and/or com- If you change cars, review all your vehicle com-
prehensive coverage on older vehicles because ponents and safety devices with your agent to be
of their decreased value, unless a lienholder, sure you are getting all the discounts you qualify
such as a bank, requires it.
for.
Restraint Systems and
Anti-theft Devices
Companies may offer discounts for certain
equipment such as anti-lock brakes, air bags,
anti-theft devices or vehicle-recovery systems.
What About Premiums?
Premium Payments
Your insurance company must correct your pre-
Make payments by check, money order, payroll mium if the agent quoted it incorrectly. If you
deduction, credit card or debit card, payable to paid too much, the company will send a refund
the insurance or premium fi nance company. Be check to you or your premium fi nance com-
sure to write your policy number on the check.
pany. If you did not pay enough, the company
must send you a bill and give you the following
Pay your premiums even when you disagree options:
with your insurance company. If you do not
pay your premiums, your insurance company ˇ Pay the additional premium. This must be
will cancel your policy. If the disagreement is
done by the due date if you want to keep the
resolved in your favor, the insurance company
coverage, and the company must keep your
must refund any overpayments.
policy in force.
Premium Quotes
ˇ Cancel your policy. The company must return
You have the right to a fair quote for coverage,
the unused part of the premium within 30
which provides an estimate of your premium.
days after it receives your request.
Such an offer does not give you a fi rm price or
contract. However, your agent or company can- ˇ Do nothing. If you do nothing, the company
not intentionally quote a lower premium just to
will cancel your policy.
get your business.

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pg. 16
pg. 17
Rate Increases
By law, companies may choose to increase ˇ legally parked
premiums before fi ling the increase with the
Department of Financial Services. The Depart- ˇ reimbursed by, or had a judgment against, the
ment will still review the increase and could
person responsible for the accident
later deny it. Companies must refund premi-
ums to policyholders if the Department fi nds ˇ struck in the rear and not convicted of a
the rates excessive.
moving traffi c violation
Disclosure
ˇ struck by a hit-and-run driver and the accident
When applying for automobile insurance, it is
was reported to the proper authorities within
important that you disclose all members in your
24 hours
household, or anyone else who regularly drives
your vehicle. If you do not and a person not ˇ not convicted of a violation, but the operator
listed on the policy is the driver involved in an
of the other vehicle was convicted of a moving
accident, you may encounter problems. Your
violation
claim may be denied for misrepresentation and
your policy contract rescinded for not properly
disclosing drivers and use of the vehicle. This
may apply to households with a family member
or teen-age driver, or a friend or other person
who uses the vehicle occasionally.
Surcharges
You may have an accident in which your insurer
fi nds you at fault. In such a case, the company
may add a surcharge to your policy or refuse
to renew it. The percentage of the surcharge
is determined by the company's underwriting
guidelines. In addition, an insurance company ˇ ruled by a local court to be not at fault for the
can surcharge a policy for an at-fault accident or
accident or "adjudicated not to be liable"
conviction for three full years from the date it is
fi rst applied, following the accident. After the ˇ dismissed or "nolle prossed" for a traffi c
three-year period, the surcharge will be elimi-
violation (the plaintiff or prosecutor dropped
nated. The company, however, must notify you
prosecution of the case) or
of your eligibility for reimbursement of the sur-
charge or renewal of the policy if you can meet ˇ not at fault according to his or her written
certain requirements. This notifi cation must
statement of facts, and the insurer's fi le does
occur if you can show that you or the driver
not provide information to overturn this
covered under your policy were:
statement.

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pg. 18
pg. 19
What if I Need to Finance
ˇ The agent must provide a copy of the premium
My Premium?
fi nance contract you sign.
If necessary, you may fi nance your premium
through a personal bank loan or your credit ˇ You will need to pay any additional premium
card account. Another option is to obtain fi -
(if your agent provided an incorrect quote)
nancing through a premium fi nance company.
to continue your coverage. You will pay
Many consumers do not understand the fi nanc-
this amount in addition to your scheduled
ing offered by such companies. In particular,
premium payment if you fi nanced your
you should remember the following:
premium.
ˇ You may reach a separate payment agreement ˇ You must pay the premium fi nance company
with a premium fi nance company that acts as
charges upon the cancellation of your policy or
the lender. (Your insurance company does
if the insurance company goes out of business.
not lend you the money.)
The Florida Department of Financial Services
regulates premium fi nance companies. If
ˇ The fi nance charges, processing fees and late-
you have any questions, call the Consumer
payment fees dramatically increase your total
Helpline toll-free at 1-800-342-2762.
insurance cost. Ask your insurance company
or agent for a full explanation of these
charges.
What About Surplus Lines Insurers?
fer insurance in Florida. Therefore, the Florida
The standard insurance market may not pro- Insurance Guaranty Association does not cover
vide all the insurance coverage consumers need. surplus lines companies. If the company fails,
Standard companies often reject risks that do you have no guarantee of reimbursement.
not meet their underwriting criteria, such as
high-risk drivers and antique, high-perfor- The Department of Financial Services does not
mance or luxury automobiles. Surplus lines regulate the rates these companies charge or
insurers fi ll an essential need for consumers the policy forms they use. For this reason, you
who cannot purchase coverage from standard should thoroughly read a surplus lines policy
companies. Your insurance agent must apply before you enter into a contract. These policies
for and receive rejections from at least three li- frequently involve differences in coverage and
censed insurers before turning to a surplus lines deductibles not found in other policies.
insurer.
For information on surplus lines insurance poli-
Surplus lines insurers can respond to the unmet cies or to fi nd a surplus lines insurance agent, go
needs of consumers due to freedom from some to the Florida Surplus Lines Service Offi ce Web
regulation. The Department of Financial Ser- site at www.fslso.com.
vices does not issue these insurers licenses to of-

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A u t o m o b i l e I n s u r a n c e
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pg. 19
What About Cancellation,
Nonrenewal or Policy Transfer?
An insurance company may stop covering you The company may cancel your policy after 60
by either canceling your policy or refusing to days only if:
renew it. You should understand the difference
between cancellation and nonrenewal. Your in- ˇ you provide misinformation on your
surance company may also transfer your policy
application or fi le a fraudulent claim. The
to another insurer.
company must give you a written notice of at
least 45 days before it cancels the policy.
Cancellations
Cancellation is the termination of an insurance ˇ the state suspends your driver license or
policy before its normal expiration date. The
vehicle registration. This also applies to any
company or the policyholder can initiate this.
driver who lives with you or regularly operates
a vehicle insured on your policy. The company
Company Cancellations
must provide you with 45 days written notice
A company may cancel your auto insurance
before it cancels the policy; or
under certain conditions, regardless of whether
you have a binder, or proof of insurance.
ˇ you do not pay your premium. Your company
must give you 10 days written notice before
Once the binder is issued and before the actual
it cancels your policy. Many companies meet
policy is issued, the company may cancel your
this requirement by simply mailing bills to
coverage for any valid reason but must give you
policyholders at least 10 days before the due
fi ve days written notice.
date, advising that the policy will cancel on a
specifi c date unless the premium is paid. These
Once the policy has been issued, the company
companies may then cancel policyholders who
may cancel your policy during the fi rst 60 days
fail to send payments on time.
of coverage for any valid reason, but must give
you 45 days written notice, or only 10 days no- Remember: An insurance company cannot
tice if your premium check bounces.
cancel your insurance policy for being involved
in accidents that you were not responsible for
If your insurance company cancels your policy, causing. But, if you have three or more accidents
it must refund any unearned premiums, or in a three-year period, the company may not re-
money paid in advance but not yet used, that is new your policy when it expires.
owed to you.
Your company cannot charge you an additional
Valid reasons for canceling a policy or contract premium, cancel or fail to renew your policy
include misrepresentation by the policyholder, if adjudication is withheld on a traffi c viola-
or simply that the policyholder is not eligible tion. This means you are not found innocent
under the company's underwriting guidelines.
or guilty and obtain no points on your driver
license. An insurer may take action if the vio-
lation involved an at-fault accident and the in-
surer paid a claim.

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pg. 20
pg. 21
Policyholder Cancellations
Nonrenewals
You may cancel your auto policy at any time Nonrenewal is the termination of an insurance
following the fi rst 60 days after its effective date policy at its normal expiration date.
by notifying your company in writing. If you do
so, the insurance company may charge you a 10 An insurance company that decides not to re-
percent penalty on your returned premium.
new your policy must notify you in writing at
least 45 days before the expiration date. The fol-
lowing are examples of reasons for nonrenewal:
ˇ Excessive claims or accidents An insurer
may opt to not renew your policy if you have
had three or more accidents -- regardless of
fault -- within the past three years. It may
also decide not to renew if you have a series
of claims and no longer meet its underwriting
guidelines. A company cannot refuse to renew
your policy if you have had only one at-fault
accident within the past three years.
This refund of your unearned premium must ˇ Traffi c violations An insurer may decide not
occur within 30 days upon receipt of your
to renew your policy if you receive a conviction
request to cancel your policy. If not, you should
receive an additional 8 percent interest on the
for a major violation, such as driving under
amount due, unless it was fi nanced through a
the infl uence (DUI) or leaving the scene of an
premium fi nance company. The refund will
accident. The company may also decide not to
then go to the premium fi nance company for
renew your coverage if you receive convictions
application to the contract.
for several minor violations.
You cannot cancel your policy during the fi rst ˇ Company guidelines The company may elect
60 days unless you can provide proof of the
not to renew your policy if you no longer
following:
qualify for coverage. Some common reasons
why you may no longer qualify include adding
ˇ the vehicle is totally destroyed
coverage for a sports car to your policy, or
submitting an excessive number of towing or
ˇ you sold the vehicle or
comprehensive claims.
ˇ you obtained coverage with another company.
Policy Transfer
Instead of canceling or not renewing your in-
surance coverage, a company may transfer your
policy to another company in the same insur-
ance group. Your company must give you 45
days advance notice of its intent to transfer your
policy. It must also inform you of new premium
costs and specifi c reasons for any premium in-
crease.

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pg. 20
pg. 21
Actions to Take Before and After Accidents
An automobile accident, like other unexpected ˇ Always report an accident to the police,
events, can cause a great deal of stress and frus-
regardless of how minor it seems. What looks
tration. A calm and informed driver can greatly
like a small dent or scratch could actually cost
ease the burden of such an unfortunate incident
several hundred dollars to repair. Make sure
for everyone involved. In particular, you can
the police offi cer gives you a copy of the driver
take steps to make sure you receive fair compen-
Exchange of Information Form.
sation for your fi nancial and material losses. It
also pays to know your rights. If you have any ˇ Write down names, addresses and phone
questions, please call the Department of Finan-
numbers of any witnesses in case you need to
cial Services Consumer Helpline toll-free at
contact them later.
1-800-342-2762.
ˇ Call your insurance company and agent
The following tips can help you before and after
immediately for further instructions. The
an accident, and during the repair and claims
insurer may deny payment of your claim if
processes.
you do not report the accident.
Before an Accident
An insurance company is responsible for the
proper, timely and reasonable investigation of
Be Prepared
claims. The insurer must let you know in writ-
ˇ Understand your insurance coverage. Know ing if it will deny and/or investigate your claim
the names, phone numbers and mailing within 30 days after receiving completed proof-
addresses of your insurance company and of-loss forms. The company must also provide
agent.
you with a reasonable explanation for denial of
your claim. In settling your claim, the company
ˇ Always carry your insurance card with you, may offer you a compromise settlement.
and make a copy to keep in your car, along
with your automobile registration.
The insurance company may void your policy
from its effective date and refuse to pay a claim
ˇ Select a repair shop. Look for a reputable if you withheld information on your applica-
repair shop with whom you have established tion that would have caused a coverage denial or
a good working relationship. This will change in the premium charged. The company
increase your likelihood of receiving quality, must pay you within 20 days once you agree in
comparable parts to replace those damaged in writing on an amount for repair or replacement
an accident.
of your auto and a settlement agreement is
signed. If not, you will collect 12 percent inter-
After an Accident
est per year on the amount of the claim from the
date of the agreement.
The Claims Process
An insurance company may settle any property
When fi ling a claim on your automobile insur- damage claim you are responsible for, based
ance, you should take the following steps:
on comparative negligence (your percentage

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A u t o m o b i l e I n s u r a n c e
pg. 22
pg. 23
of fault in an accident) if both drivers share
After Filing a Claim
fault. For example, the other driver may have You should receive a prompt and fair settlement
ignored a stop sign, but you exceeded the speed on your claim.
limit and could not stop in time to avoid the
accident. Since both parties contributed to the
accident, your insurance companies will pay the
claim according to the percentage of fault for
each driver. The insurance company must have
documentation in its fi le to justify a decision.
In some cases, your insurance company will
send an adjuster to inspect your automobile be-
fore you obtain any necessary repairs. In other
cases, your insurer will instruct you to obtain an
estimate for the work. Find out from your com-
pany what to do about supplemental damage For a totaled car, your insurance company may
in case the repair shop fi nds something caused offer you a cash settlement based on the ac-
by the accident that is not listed on the original tual cost to purchase a comparable automobile
estimate.
-- one made by the same manufacturer, in the
same model year, of a similar body type and
Before you start repairs, make sure the insur- with similar options and mileage -- or the com-
ance company confi rms coverage.
pany may elect to offer you a replacement ve-
hicle. When settling your claim, your insurance
Your insurance company must provide you company may deduct from your automobile's
with a notice of your rights when you fi le a PIP original value for damage, such as a dent from a
claim. This notice will include items such as a previous accident. However, your insurer must
list of your PIP benefi ts, exclusions and limita- fully support this adjusted value by documenta-
tions, and payment deadlines. Your insurance tion explained to you in identifi able, measurable
company must pay you or the service provider and itemized terms. Such documentation must
within 30 days upon receipt of proper written also specify appropriate dollar amounts.
notifi cation of the PIP loss amount. If not,
you or your provider will collect interest on the The insurer must take all reasonable steps
amount of your loss until you receive payment. to verify that the value you receive for your
automobile accurately represents comparable
The insurer of the at-fault driver may offer you automobiles in the local market. Your insurance
a settlement after you suffer an injury in an ac- company cannot require you to travel an unrea-
cident. However, you should realize this offer sonable distance to inspect a replacement auto-
may not fully pay your claim.
mobile, to obtain a repair estimate, or to have
your automobile repaired at a specifi c shop.
If you fi le a claim for a vehicle that was totaled
in an accident, you might not receive enough
money to replace your car or even completely
pay off your auto loan. You may owe more than
the car is worth.

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A u t o m o b i l e I n s u r a n c e
pg. 22
pg. 23
During the Repair Process
pair work has to restore the structural integrity
You have the right, based upon your contract, to designed for the safety of the driver and pas-
select the repair shop to repair your automobile sengers.
after an accident. If you choose to use a repair
shop recommended by the insurance company,
Is your car ready?
the insurance company usually will stand by the Check ALL repairs afterwards, both at the shop
completed repairs.
and again at home. Also, get a copy of the item-
ized repairs on a form printed with the repair
The insurance company must provide you with shop's name and address. If you have a problem
a copy of the repair shop estimate used to deter- with a body shop, you may request assistance
mine the settlement amount.
from the Florida Department of Agriculture
and Consumer Services at 1-800-435-7352.
You may fi nd that the written estimate provided
by the insurance company does not meet the Note: The benefi ts you receive depend upon the
written cost estimate provided to you by the provisions of your policy.
repair shop. In such cases, your insurance com-
pany has three options:
ˇ pay the difference
ˇ negotiate an agreed upon amount with the
repair shop or
ˇ refer you to a reputable repair shop that will
re
r pair
e
the damages
damag
fo
f r
o the writte
itt n
e estimate
imat
provided by the insurance company.
If
I you
y
m
ou ust
m
k
ust e
k ep
e y
p our
y
car
our
in
car st
in o
st r
o age
ag unt
e
il r
il e
r pair
e
s
pair
are made, the insurance company must provide
you reasonable notice before terminating pay-
ment of storage charges. When towing is pro-
vided by the policy, if you need to have your car
towed, the insurance company must cover the
towing cost of the company you selected, sub-
ject to policy limitations, unless they provided
you with the name of another towing company
before you chose one.
The insurance company must repair your
automobile with parts at least equal in kind
and quality to the original parts. For example,
today's vehicles have structural members made
of high-strength, low-alloy steel. An accident
may damage these structural members beyond
a certain predetermined amount. If so, the re-

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A u t o m o b i l e I n s u r a n c e
pg. 24
pg. 25
your insurance company. With arbitration,
Your Company's Right to
each party chooses, and pays for, a representa-
Reimbursement or "Subrogation"
tive. These representatives work together to set-
tle the dispute. If they fail to reach a settlement,
You may suffer an accident caused by another together they will choose a third party, called
driver in which your insurance company pays an umpire. If two of the three parties reach an
to fi x your automobile. In such a case, the agreement, they may settle the claim. Arbitra-
company may recover the amount of damages, tion is binding for you and your company.
including your deductible, from whomever
caused the accident. If the person has insur-
ance, your company may try to collect from his
Mediation
or her company. If the person has no insurance, In some cases, you may request a special media-
your company can try to collect from him or her tion conference if you disagree with the insur-
personally.
ance company. The disagreement may involve
a bodily injury claim of less than $10,000 or a
In most cases, you will lose the opportunity for property damage claim of any amount. During
reimbursement or subrogation if you sign a re- this nonbinding process, a mediator, or neutral
lease of liability for your injury to the at-fault third party, encourages the resolution of the dis-
driver and his or her insurance company. Such pute without dictating the outcome.
a release may also lead to the denial of payment
for the remainder of any claim you fi le under You may only request such a hearing before set-
UM coverage. You have the responsibility to tling with an insurance company, fi ling in court,
protect your company's right of subrogation by or signing a release-of-claim form. This process
not signing a release of liability. You must also involves a $100 fee (per party) to cover costs.
cooperate with your company by providing nec-
essary information and assistance.
For a mediation application or more inform-
ation, call the DFS Consumer Helpline toll-free
Appraisal Clause
at 1-800-342-2762, or contact one of our local
service offi ces listed in the back of this guide.
The appraisal clause in your policy gives you the
right to arbitrate your claim if you disagree with The Department of Financial Services certifi es
mediators.

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pg. 24
pg. 25
How to Select an Insurance Agent
Most agents are reputable professionals who are trained in their areas of expertise. Insurance
agents must take classes and pass tests to become licensed. Some agents choose to take courses to
obtain additional professional designations. These designations include:
CEBS .......... Certifi ed Employee Benefi ts Specialist
CFP ............ Certifi ed Financial Planner
ChFC.......... Chartered Financial Consultant
CIC............. Certifi ed Insurance Counselor
CLU............ Chartered Life Underwriter
CPCU......... Chartered Property and Casualty Underwriter
LUTCF ....... Life Underwriting Training Council Fellow
RHU........... Registered Health Underwriter
When selecting an agent, you must choose one licensed to sell insurance in Florida. You may call
the Consumer Helpline toll-free at 1-800-342-2762 to verify whether a particular agent has a state
license. You should also choose an agent with whom you feel comfortable and who will answer
your questions.
How to Select an Insurance Company
As with any major purchase, shop around to get call the Department of Financial Services Con-
the most for your money. When selecting an sumer Helpline toll-free at 1-800-342-2762.
insurance company, make sure it has a license to
do business in Florida.
Companies that rate the fi nancial statuses of
insurance companies:
Many publications rate companies on a number
of factors, such as fi nancial data (including as- A.M. Best www.ambest.com
sets and liabilities), management operations Duff & Phelps www.duffl lc.com
and company history. Many companies provide Moody's www.moodys.com
access to their ratings and other information on Standard & Poors www.standardandpoors.com
their Web sites. You may also want to review a Weiss Ratings Inc. www.weissratings.com
company's stock-analysis reports, or you may

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A u t o m o b i l e I n s u r a n c e
pg. 26
pg. 27
What About Adjusters?
An adjuster is a person professionally trained A public adjuster contracts with the policy-
and licensed to determine the amount of any holder or other person insured under the policy
claim, loss or damage payable under a contract to help settle claims with insurance companies
of insurance. An adjuster usually participates and is paid by receiving a negotiated percentage
in the settlement of the claim, loss or damage. of the claims settlement.
Insurance adjusters must be properly licensed to
work in Florida.
Adjusters in Florida are licensed by the Depart-
ment of Financial Services, and must comply
If you have any questions about the license sta- with the Adjusters Code of Ethics contained in
tus of an adjuster or the way he or she handled the Department's rules.
your claim, call the DFS Consumer Helpline
toll-free at 1-800-342-2762.
An adjuster shall:
ˇ Approach investigations, adjustments and
settlements with an unprejudiced mind
ˇ Utilize honesty and integrity as standards for
fair adjustments and settlements
ˇ Make truthful and unbiased reports of the
facts after completing investigations; and
ˇ Act with due diligence and speed in handling
claims. If you do not agree with the claim
amount approved by the adjuster; you have
the right to appeal.
The three kinds of adjusters are:
All insurance adjusters are required to adjust
Company adjusters, who work as employees of claims strictly in accordance with your insur-
insurance companies;
ance contract and in compliance with the
Florida Insurance Code. No matter which type
Independent adjusters, who usually work as of adjuster you use, be sure he or she is properly
employees of independent adjusting fi rms that licensed by asking to see license identifi cation.
contract with insurance companies to handle
claims; and
Public adjusters, who do not work for insurance
companies or independent adjusting fi rms.
Most public adjusters are self-employed, or
work in association with public adjusting fi rms.

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pg. 27
Your Rights and Responsibilities
When you buy automobile insurance, you have You have the right to fi le a complaint with your
certain rights and responsibilities.
insurance company. It must maintain com-
plaint-handling procedures. If the company
Knowing your rights and responsibilities will fails to resolve the complaint, call the Depart-
allow you to get the most from your insurance ment of Financial Services Consumer Helpline
coverage and prevent you from losing benefi ts toll-free at 1-800-342-2762 for assistance.
or your entire coverage.
Rights
Responsibilities
You have the right to choose your own insur- You are responsible for reading and understand-
ance company and agent. You do not have to ing your policy. For questions, you should call
buy insurance from the dealer who sold the ve- your insurance agent or company, or the DFS
hicle or the lending institution fi nancing it.
Consumer Helpline toll-free at 1-800-342-2762.
Keep copies of your policy and/or an identifi ca-
You have the right to a fair quote for coverage tion card from the company both in a safe place
and to a refund if your insurance agent quoted and in your automobile.
your premium incorrectly, causing you to over-
pay on your policy.
You are responsible for obtaining insurance for
at least $10,000 of PIP and $10,000 of PDL.
You have the right to receive your policy within
60 days of its effective date.
You are responsible for verifying licenses. To
verify the license of an insurance agent, custom-
You have the rightto a proper and timely inves- er representative or company, call the Depart-
tigation of your claim.
ment of Financial Services Consumer Helpline
toll-free at 1-800-342-2762.
You have the right to receive payment for repairs
or the value of your vehicle within 20 days of the You are responsible for ensuring the accuracy
date you signed a settlement agreement.
and completeness of information on your ap-
plication. Avoid signing any blank, incomplete
You have the right to buy a policy free of unfair or inaccurate forms.
discrimination due to your sex, occupation,
marital status, national origin or a physical Do not be tempted to "pad" your insurance claim.
handicap that does not impair your driving Taking money that you are not due from an insur-
ability.
ance company is a crime. This type of theft and
fraud is investigated by insurance companies and
You have the right to receive copies of all forms the Department of Financial Services, and is pun-
and applications signed by you or your insur- ishable by fi nes and/or jail time.
ance agent.

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pg. 29
You are responsible for getting a binder from You are responsible for reporting to your insur-
the insurance agent once you sign the applica- ance agent or company any changes affecting
tion and pay for coverage. A binder shows proof your policy. You must also keep proof of insur-
of your coverage until you receive your policy. ance (the I.D. card from your company will do)
It shows the name of the agent and insurance in your automobile at all times. You should also
company, a list of your vehicles, lienholders (if keep an extra copy of your insurance policy and
any), effective date and time, and the coverage other important records in a safe deposit box
you bought. It must also bear the signature of a or with a family member or friend who lives
licensed agent.
in another area. Then you can quickly obtain
needed information if anything happens to your
You are responsible for keeping track of your originals.
policy renewal date. Policies usually last for
terms of six or 12 months. Most companies will You are responsible for contacting your insur-
send you a bill at least 45 days in advance of your ance company or agent immediately after an
deadline for renewal and premium payment.
accident.
You are responsible for paying any additional You are responsible for reporting suspected
premium amount if your agent quoted a lower fraud to the Florida Department of Financial
premium and you still want to continue your Services. You may call our Fraud Hotline toll-
coverage.
free at 1-800-378-0445.
Insurance Discrimination
Against Victims of Abuse
Florida has adopted laws to protect victims of Abuse is broadly defi ned to mirror the defi ni-
abuse from discrimination. Florida law (Section tion of domestic violence in Section 741.28.
626.9541) provides that it is illegal for insurers These laws protect all Floridians from discrimi-
to use information that someone has sought, or natory actions by health, life, disability, property
should have sought, treatment, protection or and casualty and automobile insurers as well as
shelter in the past for abuse, or that abuse might managed care providers.
occur in the future as a result of an assault, bat-
tery or sexual assault by a family or household
member. Insurers cannot:
ˇ base a decision to underwrite a policy
ˇ refuse to issue, reissue or renew a policy
ˇ refuse to pay a claim
ˇ cancel or otherwise terminate a policy or
ˇ increase rates
based on a person's status as a victim, or poten-
tial victim, of abuse.

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pg. 29
Steps to Take
ˇ Find out if information about your medical
history is in the Medical Information Bureau
ˇ If you are a victim of domestic violence or
(MIB), and request a report to see if it
abuse and you are denied insurance, if your
mentions abuse or any abuse-related matters.
rates are raised, or if the insurer refuses to pay
The report is free if you have a letter from
a claim, demand in writing that the insurer
an insurance company saying it used MIB
explain in writing why it took this action.
information to make a decision about you.
[Medical Information Bureau, P.O. Box 105,
ˇ Call the Florida Domestic Violence Hotline
Essex Station, Boston, MA 02112; or call (866)
toll-free at 1-800-500-1119. You may also
692-6901, or visit www.mib.com]
call your local certifi ed domestic violence
center and ask to speak with an advocate, or ˇ File an appeal with the insurer, as described in
call the Battered Women's Justice Project at
your policy.
1-800-903-0111.
ˇ Call the Department of Financial Services
Consumer Helpline toll-free at 1-800-342-
2762, or go to the Department's Web site at
www.fl dfs.com.
Community Outreach Programs
The Department of Financial Services offers ˇ Predatory Lending
free community outreach programs on a va-
riety of topics to help consumers make sound ˇ Living in a Danger Zone: Hurricane and
fi nancial decisions and avoid becoming victims
Disaster Preparedness
of insurance or fi nancial fraud. Speakers are
available on a topic of your choice and will work ˇ New to Florida? How to Cover Your Assets
with you to tailor presentations to your group's
needs. Choose from one of the topics listed here ˇ Young Drivers
or call us with your requests. For more infor-
mation, contact the Service Offi ce in your area, ˇ Insurance and Financial Needs in the Golden
or call toll-free 1-800-342-2762.
Years
Consumer Protection Topics
ˇ Health, HMOs, Long-Term Care and Medicare
Supplement Insurance
ˇ Consumer Beware: Insurance Scams and
Financial Fraud
ˇ Small-Business Insurance Needs
ˇ Wheels, Deals and Credit Card Spiels
ˇ Workers' Compensation
ˇ Are You Covered? Avoid Illegal Insurance
Practices

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Protecting Your Privacy
Your Insurers and Financial Institutions
Under federal law, some banks and insurance companies may have the right
to share sensitive and personal information about you with other entities and
business interests -- without your per-
mission.
Fortunately, Florida laws, and rules
established by the Department of Fi-
nancial Services, provide a way for you
to protect this personal information.
As the policyholder, you must take the
lead in protecting your personal infor-
mation.
You may have already received, or soon
will receive, privacy notices from the
fi nancial and insurance companies you do business with. These forms give you
the opportunity to tell the companies that you want your personal information
kept private. Unless you complete and return these forms, your personal fi nan-
cial and medical information may be shared with other companies. You may re-
ceive these forms on an annual basis, and be required to complete them to keep
your information confi dential.
When you receive a privacy notice form, read it carefully before signing it to
avoid unintentionally giving the company permission to share information
about you. If you have questions or concerns about these forms, call the Con-
sumer Helpline toll-free at 1-800-342-2762.

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Insurance Fraud Costs Us All!
Insurance fraud costs each Florida family an additional $1,500 per year* in
increased premiums. In fact, it can infl ate your premiums by as much as 30
percent, according to the National Insurance Crime Bureau. This includes the
money you pay for life, auto, health, homeowners and other types of insurance.
You can protect your personal and family pocketbook by learning about the
many types of fraudulent schemes, such as:
Fictional theft A policyholder fi les a phony insurance claim for a "stolen"
luxury car. The policyholder tries to steal a $25,000 check from an insurance
company for a car actually hidden in storage.
Repair shop rip-offs The owner of an auto repair shop offers to infl ate a
policyholder's damage estimate as a "favor." The dishonest policyholder
then submits an infl ated insurance claim.
Agent sliding An agent commits "sliding" by selling a consumer optional
coverage or services without full consent, such as auto and travel club mem-
bership, towing, and accidental death and dismemberment coverage. The agent
may trick the policyholder by describing the options as part of a "package" deal.
Understatement of risk A dishonest applicant who frequently travels de-
liberately underestimates the number of miles driven per year in hopes of
obtaining a lower premium.
Deceptive claim An accident victim fi les a $36,000 claim for "lost wages and
medical bills" following an automobile accident. The victim claims the ac-
cident caused a knee injury, but investigators uncover earlier treatment records
for the same condition.
There are many other types of insurance fraud. If you suspect such a crime
has occurred, call the Florida Department of Financial Services' toll-free Fraud
Hotline at 1-800-378-0445.
*Source: The Coalition Against Insurance Fraud

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pg. 33
Glossary
Adjuster
Exclusion
An adjuster is a person licensed by the Depart- An exclusion is a provision in an insurance
ment of Financial Services who evaluates the policy that denies coverage for certain losses,
damage caused by an accident or other covered persons or property.
loss and determines the amount to pay.
Florida Insurance Guaranty Association
Agent
The Florida Insurance Guaranty Association
An agent is a person licensed by the Department is a nonprofi t corporation created by state law
of Financial Services who sells and services in- to pay claims in the event of the bankruptcy
surance policies.
of a property and casualty insurance company
licensed in Florida.
At Fault
"At fault" is being responsible for an accident.
Insurance Identifi cation (I.D.) Card
An insurance identifi cation card is a wallet-
Binder
sized card issued by an insurance company that
A binder is a temporary document issued by the indicates the insured's policy number and cov-
agent that provides proof of coverage until an erage.
insurance company issues a permanent policy.
Insured
Cancellation
The insured is the person(s) covered under an
Cancellation is the termination of an insurance insurance policy. The term can also be used in
policy before its normal expiration date.
describing items that are covered.
Claim
Insurer or Insurance Company
A claim is a request for fi nancial reimbursement An insurer or insurance company is the com-
on an insured loss.
pany providing the insurance.
Comparative Negligence
Liability
Comparative negligence is a determination of A liability is any legally enforceable obligation.
the percentage of fault shared by each driver
who contributed to an accident.
Liability Insurance
Liability insurance is coverage for a policyhold-
Deductible
er's legal liability resulting from injuries to other
A deductible is the amount a policyholder must persons or damages to their property.
pay per claim or accident.

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Limits
Limits are the maximum amounts of benefi ts,
as per the contract, that the insurance company
will pay in the event of a loss.
No-Fault Insurance
No-fault insurance compensates you for a loss
according to the terms of your policy, regardless
of who caused the accident. In Florida, no-fault
insurance applies to personal injury only and
does not provide any coverage for your vehicle.
Nonrenewal
Nonrenewal is the termination of an insurance
policy at its normal expiration date.
Premium
A premium is the charge for insurance based on
the type and amount of coverage.
Premium Finance Company
A premium fi nance company is a lending in-
stitution that fi nances insurance premiums for
a fee. A premium fi nance company in Florida
must obtain a license from the Department of
Financial Services.
Surcharge
A surcharge is an additional charge added to the
basic policy premium.
Subrogation
Subrogation is the process by which an insur-
ance company, after paying a loss to its insured,
recovers the amount paid for damages (which
can include the insured's deductible) from the
legally liable party.

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Service Offi ces
Jacksonville
St. Petersburg/Largo
Tampa
921 N. Davis St.
11351 Ulmerton Road
5309 E. Fowler Ave.
Building B, Suite 260
Suite 240
Tampa, FL 33617-2221
Jacksonville, FL 32209
Largo, FL 33778-1636
(813) 899-6160
(904) 798-5800
(727) 587-7260
West Palm Beach
Miami
Tallahassee
400 N. Congress Ave.
401 N.W. Second Ave.
Larson Building
Suite 210
Suite N-307
200 E. Gaines St.
West Palm Beach, FL
Miami, FL 33128-1700
Tallahassee, FL 32399-0323
33401-2933
(305) 536-0300
(850) 413-3132
(561) 640-6700

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Notes

32399-0323
Division of Consumer Services 200 E. Gaines St. Tallahassee, FL