Selling Auto Insurance In Florida: Strategies For Success

Auto insurance in Florida is more expensive than in many other states, with drivers paying an average of $2,553 per year. To sell auto insurance in Florida, you must obtain a Florida insurance license. This involves completing seven steps, including deciding which insurance policies you want to sell, meeting the licensing requirements, completing an insurance exam, and registering with the state. The cost of obtaining a license includes a $50 application fee, a $5 license ID charge, a $44 exam fee, and a $50.75 fingerprinting and background check fee.

Know the different types of insurance you can sell

When it comes to selling auto insurance in Florida, it is crucial to familiarize yourself with the different types of insurance products available in the market. Here is a detailed overview of the various insurance types you can sell:

Auto Insurance

Auto insurance is a necessity for vehicle owners in Florida. Before registering a vehicle with at least four wheels, residents must provide proof of Personal Injury Protection (PIP) and Property Damage Liability (PDL) auto insurance. PIP insurance covers 80% of all necessary medical expenses up to $10,000 resulting from a covered injury, regardless of who caused the accident. On the other hand, PDL insurance covers damage to another person's property caused by the insured vehicle. It is important to note that taxis are required to carry higher PDL coverage and Bodily Injury Liability (BIL) coverage.

Homeowner's Insurance

Although not legally required in Florida, homeowner's insurance is essential for protecting what is likely the biggest investment for most people – their homes. This type of insurance can help cover repairs, rebuilding costs after a disaster, and replacement of lost personal property. Additionally, it usually provides personal liability insurance. The specific policy depends on the structure of the home and how it is occupied. The most common policies offered are Owner-occupied (HO-1, HO-2, and HO-3), Condominium Unit-Owner or HO-6, Renters or HO-4, Modified Coverage Form or HO-8, and Dwelling Form.

Health Insurance

Health insurance is a vital product in Florida, with many residents relying on it for their healthcare needs. The state uses the federally-run Health Insurance Marketplace, HealthCare.gov, where individuals and families can find affordable health insurance plans. Florida has the highest enrollment in Marketplace plans across the nation, with a variety of private insurance companies offering coverage. It is important to note that Florida banned surprise balance billing for state-regulated health plans in 2016.

Life and Health Insurance

This type of insurance combines life insurance and health insurance into one policy. It provides financial protection in the event of unexpected health issues or death. Life and health insurance policies can vary in their coverage and exclusions, so it is important to understand the specific terms of each policy.

Property and Casualty Insurance

Property and Casualty insurance covers damage to or loss of property, as well as legal liability for accidents or injuries caused by the policyholder. This type of insurance can protect individuals and businesses from financial losses due to unforeseen events.

Other Types of Insurance

In addition to the main types of insurance mentioned above, there are also other specialized insurance products that you can sell in Florida. These include but are not limited to crop hail and multi-peril crop insurance, home warranty insurance, service warranty insurance, motor vehicle service agreement insurance, professional bail bond insurance, portable electronics insurance, and reinsurance intermediary broker appointments.

Remember, it is crucial to have the proper licenses to sell insurance in Florida. Each type of insurance may have specific licensing requirements, so be sure to check with the Florida Department of Financial Services for more information.

Research the qualifications needed to sell auto insurance in Florida

To sell auto insurance in Florida, you must be a licensed insurance agent or broker. Here are the qualifications you need to meet:

Education Requirements

A high school diploma or GED is the minimum education requirement to become an insurance broker in Florida. Although a bachelor's degree is not mandatory, earning one in a related field such as accounting, business, or finance can enhance your career prospects and make you a more attractive candidate for employers.

Licensing Requirements

To sell auto insurance in Florida, you must obtain a license from the state. This involves completing a pre-licensing course and passing the Florida licensing exam. The pre-licensing course requirements vary depending on your chosen specialty. For example, the Health & Life pre-licensing course is 40 hours, while the General Lines (Property & Casualty) license, which is the highest level of authority you can test for, requires 200 hours of mandated study. The licensing exams are administered through Pearson VUE, and you must create an account to register. The exams cover different content depending on the specialty, and you will need to devote time to studying the material thoroughly.

Fingerprinting and Background Check

As part of the licensing process, you will need to submit your fingerprints electronically via LiveScan through MorphoTrust USA. This is required for a fingerprint-based criminal history check, which is submitted to the Florida Department of Financial Services. There is a fee for fingerprinting, which is currently $45.80 plus any applicable local Florida county sales taxes.

Registration with the State

After passing the licensing exam, you need to register with the state by creating a MyProfile account with the Florida Department of Financial Services' Bureau of Licensing. You can then apply for your Florida license through the MyPortal system. There is a $50 license application fee and a $5 license ID fee.

Appointment with Insurance Providers

To start working with clients, you must apply for an appointment with insurance providers. This can be done through the eappoint online portal, and there is a fee for each appointment. Appointments authorize you to act as an agent of the insurer, and it is typical to apply for appointments with multiple insurers to offer a range of options to your clients.

Continuing Education

To maintain your license, you may be required to complete continuing education courses. These requirements vary depending on the insurance line you specialize in. Proof of completion of CE courses must be submitted through MyProfile, and failure to do so may result in losing your insurance license.

Learn about the insurance license application process

To sell auto insurance in Florida, you'll need to obtain a Florida insurance license. Here's a detailed breakdown of the insurance license application process:

Step 1: Complete the Prelicensing Education

Before applying for a Florida insurance license, you must fulfil specific educational requirements. This involves completing a certain number of state-approved education credit hours, with the number of hours varying depending on the type of license you're seeking. For instance, to obtain a 2-15 Health & Life (Including Annuities & Variable Contracts) Agent License, you must complete a 60-hour approved insurance course. Upon completion of the required course, you will receive a certificate.

Step 2: Submit the License Application

Once you've fulfilled the educational requirements, you can proceed to apply for your Florida insurance license. The application process involves a non-refundable application fee of $50 and a License ID fee of $5, amounting to a total cost of $55. You can submit your license application through Florida's Division of Insurance Agent and Agency Services webpage.

Step 3: Complete Fingerprinting and Background Check

As part of the licensing process, the state of Florida mandates that applicants submit fingerprints and undergo a background check. This process is facilitated through MorphoTrust USA, and it incurs a fee of $45.80 (plus tax). Your fingerprints will be automatically submitted to the Florida Department of Law Enforcement.

Step 4: Prepare for and Take the Insurance Licensing Exam

In Florida, insurance exams are bundled, so you'll need to take the exam that corresponds to the insurance lines you intend to carry. For instance, if you want to sell auto insurance, you'll need to pass the Property & Casualty exam. These exams are proctored, meaning there will be a designated person overseeing you as you take the exam.

Step 5: Pass the License Application Review

After successfully passing the exam and submitting your application, your background check and application will undergo a review by the state. If everything is in order, your license will be issued. If there are any issues with your background check, the state may reach out to you for further clarification. You will be notified of the approval through your MyProfile account on the FL Division of Insurance Agent and Agency Services website.

Understand the costs involved in obtaining a license

To sell auto insurance in Florida, you need to obtain a Florida insurance license. The costs involved in obtaining a license include:

Pre-licensing Education Course

Pre-licensing education courses are highly recommended as they increase your chances of passing the licensing exam on the first attempt, saving you time and money. These courses typically include features such as live tutoring, study calendars, and practice exams to enhance your understanding of the material. The cost of pre-licensing education courses can vary, but it's important to note that cheaper options may not provide sufficient resources for preparation.

Exam Fees

The Florida insurance license exam costs $44. It is important to note that you may need to take multiple exams, depending on the lines of insurance you plan to sell. Additionally, there is a limit of five attempts for the same exam type within a 12-month period.

Application Fees

The application fee for a Florida insurance license is $50, plus a small $5 license ID charge. If you have completed pre-licensing education for multiple lines of authority, you will need to submit a separate application and pay the filing fees for each.

Fingerprinting and Background Check Fees

Fingerprinting fees cost $50.75 and must be paid directly to the vendor. The background check is included in the fingerprinting process and helps confirm that you meet the federal and state regulations for insurance agents.

Total Costs

The minimum cost to obtain a Florida insurance license is approximately $144, including the background check, exam, and application fees. However, when factoring in the cost of pre-licensing education, the total cost can be significantly higher.

Familiarize yourself with the insurance exams

To sell auto insurance in Florida, you'll need to obtain a Florida insurance license. This will require you to pass a Florida insurance license exam. Here's what you need to know about the exam and how to prepare for it:

• The type of insurance license exam you need to take will depend on the type of insurance policies you want to sell. For selling auto insurance, you'll need a Property & Casualty (P&C) license.
• The P&C license exam will cover a range of topics related to property and casualty insurance, including but not limited to auto, home, and business insurance.
• The exam is proctored and multiple-choice, and you can choose to take it online or in person.
• The exam will cost you $44, and you'll need to obtain a score of at least 70% to pass.
• You are allowed up to five attempts at the exam per year.
• It is recommended that you allow for two to six weeks of study time, depending on whether you are studying full-time or part-time and your comfort level with taking exams.
• Completing a pre-licensing education course is highly recommended as it increases your chances of passing the exam on your first attempt. These courses offer features such as live tutoring, study calendars, and practice exams to enhance your understanding of the material.
• When choosing a pre-licensing course, consider factors such as flexibility, price, and the course provider's reputation.
• In addition to pre-licensing courses, you can also satisfy the education requirement by earning an insurance degree with credit hours in specific subjects or by presenting an original letter from an appropriate American Institute.
• The Florida Insurance 60-hour Pre-License Course is a state-approved option that covers topics such as Federal and State Regulations, Legal Concepts of the Insurance Contract, Life and Health Insurance, Annuities, Health and Accident Insurance, and Disability and Medical Reimbursement.

Frequently asked questions