Final answer:
Florida currently requires a minimum of $10,000 in personal injury protection and $10,000 in property damage liability for drivers. Insurance is a way to spread risk among many to cover the expenses of few.
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 is $10,000 for personal injury protection (PIP) and $10,000 for property damage liability (PDL). To illustrate how insurance works by spreading risk, consider a simplified example.
If each of the 100 drivers pays a $1,860 premium each year, the insurance company will collect the $186,000 that is needed to cover the costs of the accidents that occur. This is based on the total damage incurred by car accidents in a hypothetical group of 100 drivers amounting to $186,000 for the year.