Final answer:
Florida law requires drivers to have a minimum liability coverage of $10,000 for personal injury protection (PIP) and $10,000 for property damage liability (PDL), with no minimum requirement for bodily injury per person or per accident. Drivers in Florida must carry their own insurance due to a no-fault system for injuries. An insurance premium example shows how costs are covered collectively.
Step-by-step explanation:
The current minimum amount of liability coverage required by the state of Florida for a driver who is found to be at fault in an accident falls under 'No minimum requirement' for bodily injury per person or per accident. Instead, Florida law requires a minimum of $10,000 of personal injury protection (PIP) and a minimum of $10,000 of property damage liability (PDL). Although the options provided include $10,000 bodily injury per person (Option A), $25,000 property damage (Option B), and $50,000 bodily injury per accident (Option C), they do not accurately represent the required minimum liability coverage in Florida for bodily injuries. The state operates under a no-fault insurance system for injuries, hence drivers are required to carry their own protection (PIP).
To understand how an insurance company would cover costs, consider a simplistic example of automobile insurance pooling risk. If we have a group of 100 drivers where damages accrued from accidents total $186,000, and each driver pays a $1,860 premium annually, the insurance company gathers enough through premiums to cover the costs of the accidents.