post

What Is Social Inflation, and How Does It Affect You?

by Posted in Commercial Insurance, News, Uncategorized Tagged , ,

As if the Florida insurance markets don’t have enough challenges, there’s a relatively new concept causing concern here as well in the rest of the country: social inflation. In fact, some insurance industry experts list it as one of their main concerns in 2023.

What is social inflation?

Social inflation describes the impact on the cost of insurance claims caused by rising litigation costs. These costs are different from those related to traditional inflation—things like material costs, labor prices, or supply chain issues. One example of the impact of social inflation: According to a report released March 6, “U.S. commercial auto insurance liability claim payouts increased $30 billion more than would have been otherwise expected between 2012 and 2021 due in part to social inflation.”

The primary factors influencing social inflation include:

  • Runaway litigation—insurance companies face a much higher than normal number of lawsuits.
  • “Nuclear” verdicts—an increase in huge jury awards.
  • Rollback of tort reform which placed limits on non-economic damages.
  • Litigation funding from third parties—third parties provide legal funding to clients and their attorneys in exchange for a share of a winning jury award or arbitration, often resulting in legal proceedings that take longer than expected (another driver of social inflation).

The use of the word “social” indicates that the attitudes of society play a role. Negative attitudes of the public toward corporations, a desire to “see someone pay” when an accident occurs, and the ability of plaintiffs’ attorneys to play on the sympathies of a jury all affect litigation costs. At this time, social inflation is primarily affecting commercial auto insurance, professional liability, product liability, excess liability and umbrella policies, and increasingly, personal auto insurance.

How does social inflation affect you?

As we’ve seen in the Florida homeowners insurance market, the actions of some affect what we all pay for our insurance. Social inflation makes insurance cost more because it inflates the cost of claim payouts. It likely also increases the costs of goods and services, because when businesses have to pay more for insurance coverage, they pass some of that cost on to their customers.

Insurance companies have tools to plan for factors influenced by traditional inflation, but social inflation is unpredictable and hard to foresee. If social inflation continues for a significant amount of time, insurance companies may not be able to keep premium increases in line with the rising costs of claims. This threatens the solvency of insurance companies, and in some instances, results in insurance companies deciding not to write certain coverage at all. This makes it harder for you to get the insurance coverage you need.

What can be done about social inflation?

Insurance companies have become more aware of social inflation, and are doing what they can to mitigate its effects, including improving risk management practices, educating the public, and advocating for more transparency around third-party litigation funding.

As an independent insurance agency, L & M Insurance Group partners with multiple commercial and personal lines insurance carriers, and monitors insurance markets for current trends. If you need a quote for commercial auto, personal auto, homeowners insurance, commercial liability, or any other form of business or personal insurance, please give us a call at (813) 672-4100, or contact us online. Because we’re independent, we have much more flexibility in finding insurance coverage tailored for your specific needs.

post

5 Tips to Improve Your Credit Score—and Lower Your Insurance Premiums

by Posted in Auto Insurance, Homeowners Insurance Tagged , ,

When high prices make you feel financially pinched, you look for ways to save money on your expenses, including insurance premiums. One way to do this is to improve your credit score.

Even though they aren’t the same, there is a connection between credit scores and credit-based insurance scores, also known simply as insurance scores. As we explained in “How Your Credit Affects Your Insurance Premiums”:

“Credit-based insurance scores (or insurance scores) are ratings based on your consumer credit information. They use much of the same information to provide a rating as credit scores do—payment history, outstanding debt, pursuit of new credit, credit mix—but they are used to predict insurance losses. As with credit scores, the higher your insurance score the better, because, according to the Insurance Information Institute (iii.org), ‘Insurance claims tend to decline as credit scores improve.’”

And according to this Forbes Advisor article, drivers with bad credit may pay up to 42 percent more for their car insurance than those with good credit. Homeowners insurance rates are also affected by credit scores.

So let’s take a closer look at your credit score, since improving it just might save you money on your home and car insurance.

Credit score factors

A credit score is your credit history reduced to a number between 300 and 850. The higher the score, the better credit risk you are. Scores above 720 are considered good, and those below 630 are considered poor.

There are five components of a credit score:

  • Payment history
  • Amount you owe (“credit utilization”)
  • Length of credit history
  • Credit mix—what types of credit you have, such as credit cards, student loans, car loans, etc.
  • Hard inquiries for new credit—have you been trying to get a lot of new credit in a short period of time?

The most important of these factors are your payment history and credit utilization.

Five tips to improve your credit score

Though it may take a bit of time, it’s worth the effort to improve your credit score for both your financial health and as a way to lower your insurance premiums. Here are five tips to improve your credit score:

  1. First, check your credit report for errors and outdated information. By law, once a year you can request a credit report from the three main reporting agencies (Experian, Equifax, and TransUnion—go to AnnualCreditReport.com for more information). One study found that more than one quarter of consumers had at least one error on their reports that would make a difference in their credit score. Look for accounts that aren’t yours, on-time payments marked late, etc.
  2. Pay your bills on time. The most important and effective thing you can do to raise your credit score. Set up payment reminders or take advantage of auto pay. If you find you’re not going to be able to pay at least the minimum due, contact your creditor to see if they have hardship options available.
  3. Monitor your credit utilization. How much of your available credit are you using? Are your credit cards maxed out? Pay down high credit card balances when you get the chance. If you pay off a card, leave the account open, even if you don’t intend to use it. Accounts like this help with both credit utilization and length of credit history. Experts recommend keeping your credit utilization at no more than 30% of your available credit, preferably lower.
  4. Build a credit history. Some people have lower credit scores partly because they don’t have much of a credit history. If you have little to no credit history, build one by applying for a department store or gas credit card. These are usually easy to get. You may also choose to apply for a secured credit card. This card requires a deposit equal to your credit limit. Otherwise, it functions just like an unsecured credit card—you’ll need to pay your bill monthly (the deposit can’t be used to pay your bills, but usually you’ll get that money back when you’re done needing a secured card).
  5. Keep “hard” credit enquiries to a minimum. Even if you need to apply for credit to build a history, don’t try to open too many accounts in a short period of time. And if you need to shop for a car loan or mortgage, do so in a focused period of time.

No matter what your credit score, L & M Insurance Group can help you find the best deal on insurance

L & M Insurance Group partners with many different insurance companies, so whether you have good credit or bad credit, we can match you with auto and home insurance coverage at the most competitive price. Because we are an independent agency, we have more options to choose from than a captive agency does. Let our agents shop for your best insurance deal—call us at 813-672-4100, or click here to contact us online.

For more information:

How to Improve Your Credit Score

post

Are You Covered? Liability Insurance Options for Business Owners

by Posted in Commercial Insurance Tagged , ,

You’ve spent years working to make your business a reality. Finally, after all your hard work, you’re making money. Then—disaster! A customer slips and falls in your office and sues you, one of your employees is injured on the job, or a computer with sensitive client information is stolen!

Most if not all businesses need the protection of commercial liability insurance. Along with your own best practices, partnering with a commercial insurance company can give you peace of mind that your business can survive a lawsuit, data breach, or other covered loss. Commercial insurance can protect many different businesses—from a small retailer to a real estate investor, a landscaping company, to a CPA.  

What is liability insurance?

Commercial liability insurance covers what you as the policyholder are legally obligated to pay because of bodily injury or property damage caused to another person. For businesses, this coverage is essential, protecting assets from lawsuits that could be financially devastating, or even put you out of business entirely.

What type of liability coverage do I need?

The type or types of liability coverage you need to protect your assets depends on your business. The kind of work you do, your property and equipment, your customers and employees—these factors influence the kind of coverage you’ll need. Here are some of the most important coverages to consider:

Commercial general liability. Most businesses need general liability. This coverage protects you from claims that include customer injury or property damage, mistakes that adversely affect a client financially, or advertising that hurts a competitor. General liability insurance can be bought by itself, or as part of a business owner’s policy, or BOP, which combines business liability, property, and income coverage into one policy.

Workers compensation. This coverage provides financial compensation to employees who have been injured on the job and can’t work. Employer’s liability, which is often included in a workers comp policy, helps employers pay for legal costs when an employee is injured on the job.

Professional liability insurance, or errors and omissions insurance (E&O). Like malpractice insurance for doctors, this coverage protects you if a customer sues you because of a professional mistake or oversight.

Umbrella or excess liability. Additional coverage which takes over once policy limits have been reached on your general liability, employer’s liability, or commercial auto policy.

Employment practices liability. EPL covers damages and defense costs if an employee claims harassment, wrongful termination, discrimination, or makes another employment-related claim. 

Cyber liability. Helps your business deal with the financial repercussions of a data breach or cyberattack.

How can L & M Insurance Group help me with my insurance needs?

You’re not wrong to think there’s insurance available for almost any crisis a business might face! If you need help in sorting through the insurance coverage your business needs, please consult with an L & M Insurance Group agent to discuss your specific situation. We can help you tailor your insurance coverage to address the specific risks unique to your business. Reach us by phone at 813-672-4100, or click here to contact us online. L & M Insurance Group is a locally owned, independent small business—let us help you protect your business from the unexpected.

post

I’ve Never Had a Claim—Why Does My Insurance Keep Going Up?

by Posted in Auto Insurance, Homeowners Insurance, News Tagged , , , , ,

This is a common complaint among our customers who find their home and auto insurance rates continue to rise, even when they haven’t had any claims. We know this can be frustrating and we always do our best to find the most competitive insurance rates, no matter what type of insurance our clients need.

As we’ve noted before, the Florida insurance marketplace has some unique challenges, but the cost of insurance is rising in most states. Insurance companies look at many factors when they set their rates, only some of which you can influence—like keeping your driving record clean or improving your credit score. But there are some things which are beyond both your control and your insurance company’s control, factors which are at work in the industry at large. Here are a few things which affect the price of your insurance—even if you, personally, don’t have a claim.

Insurance is a “pool of risk”

First, understand that the central function of insurance is the sharing or pooling of risk. In return for a premium, the insurer agrees to pay for the covered losses of its policyholders. As the Insurance Information Institute (iii.org) rather poetically explains, “If risks—chances of loss—can be divided among many members of a group, then they need fall but lightly on any single member of the group. Thus misfortunes that could be crushing to one can be made bearable for all.”

Insurance protects against catastrophic loss, and in that role it helps to keep society functioning. We couldn’t get credit to buy a house or car, or to start a business if creditors couldn’t have some guarantee of being paid back in the event of a loss. A family who loses a home and all their belongings in a fire would be devastated without an insurance policy. A small business owner could lose everything if someone sued them after slipping and falling at their business. Insurance helps protect us all from financial ruin.

Claims have become more frequent

So remembering that insurance is a pool of risk, if claims become more expensive or more frequent, everyone in the pool will be affected. Simply put, you may not have made a claim, but plenty of other people have. According to Climate.gov, “In 2021, the U.S. experienced 20 separate billion-dollar weather and climate disasters, putting 2021 in second place for the most disasters in a calendar year, behind the record 22 separate billion-dollar events in 2020.” These events include wildfires, tornadoes, floods, and, of course, hurricanes. Plus, those claims numbers don’t include the more mundane events that take place every day—the fender benders, the burst pipes, and so on.

The cost of everything is increasing

This includes the costs to rebuild or repair homes and vehicles in the event of a loss. Home renovations, demand for new construction, and supply chain issues have limited the availability of construction supplies and materials, inflating prices. Auto claims costs are also rising because of similar factors.

Another significant expense for insurance companies is the rising cost of reinsurance (insurance for insurance companies).

Because of these factors, the cost of doing business has insurance companies scrambling. In order to stay in business themselves, they pass on these increased expenses to policyholders.

L & M Insurance Group—your independent agency

Despite the cost, buying appropriate insurance is still one of the best ways you can protect your assets. If you want to be sure you’re paying the most competitive rate for your insurance, why not call a local, independent agency like L & M Insurance Group? Our agents are well-versed in the Florida insurance marketplace and will be happy to answer your questions and give you a quote. We handle personal lines, such as homeowners and auto, as well as business insurance, health, and life insurance. Please call (813) 672-4100, or click here to contact us online. Let us help you find the best insurance coverage at the most competitive price.

post

New Homeowners Insurance Legislation—Will It Bring Your Premiums Down?

by Posted in Homeowners Insurance, News Tagged , ,

If you own a home in Florida, you know that homeowners insurance premiums are skyrocketing, and it’s getting harder for some to even find homeowners insurance. In 2022 alone, six Florida homeowners companies became insolvent, leaving thousands of consumers scrambling for coverage. Many insurance companies are cancelling or non-renewing policies, as well as tightening underwriting requirements. Florida property insurance companies have recorded underwriting losses of more than 1 billion dollars for the past two years, and many are fleeing the state or raising premiums as much as they are allowed to by the Florida Office of Insurance Regulation.

And while hurricanes and other covered perils contributed to their losses, insurance experts note that lawsuits and assignment of benefits abuse have been the main reasons for underwriting losses.

In December 2022, Florida lawmakers met in a special session to address the crisis in the homeowners insurance market. They passed Senate Bill 2A (SB 2A) which was signed into law by the governor on Dec. 16.

SB 2A provisions

While there are still many issues to address, we hope this bill will help stabilize the homeowners insurance market in Florida, stop the steep rise in premiums, and keep homeowners insurance available to everyone. Here are a few of the main provisions of SB 2A:

  • Creates a state-backed reinsurance fund to offer reinsurance (insurance for insurance companies) at lower rates to insurers struggling with the cost. Reinsurance prices have risen significantly, and experts expect them to continue to go up in 2023.
  • Eliminates one-way attorney fee provisions. In the past, property insurers were responsible for paying the attorney fees of policyholders who sue them over a claim and win. Now, each party will pay for their own attorney fees.
  • Prohibits the assignment of benefits for both residential property and commercial property claims. Assignment of benefits is an agreement that gives a third party, such as a contractor, authority to do such things as file claims and collect insurance payments, without the involvement of the homeowner. Originally intended to streamline the claims process, assignment of benefits has become a vehicle for abuse and fraud.
  • Attempts to return Citizens Property Insurance Corporation to the status of insurer of last resort by requiring policyholders to accept renewal or take-out offers from an authorized company that is within 20 percent of the policyholder’s Citizens insurance premium.
  • Requires those with Citizens policies to purchase flood insurance.

The bill also contains provisions to encourage insurance companies to pay claims promptly, including requiring them to begin an investigation of a claim within seven days, and reducing the time for them to pay or deny a claim from 90 to 60 days.

Will homeowners insurance premiums come down?

The question everyone wants to know the answer to! Unfortunately, we won’t see the price of homeowners insurance come down right away, though it’s possible we might see decreases in a year to 18 months’ time. It will take time to see the results of the changes taking effect. State regulators and lawmakers say they will continue to monitor the situation and have requested data from the insurance companies about litigation and other factors which contribute to insurance company insolvencies.

Your partners at L & M Insurance Group

The insurance professionals at L & M Insurance Group are experts in navigating the Florida homeowners insurance market. If you receive a cancellation or non-renewal notice for your homeowners policy, or your renewal offer goes up drastically, we can help. Give us a call at 813-671-4200, (or click here to contact us online) and one of our agents will help you review your homeowners insurance options. L & M Insurance Group is a locally owned, independent insurance agency. We’ve served Riverview, Tampa, Brandon, Valrico, and surrounding communities for more than 30 years.

post

Fire Pit Safety Tips

by Posted in Homeowners Insurance Tagged ,

With the holidays and some of Florida’s nicest weather approaching, many of us are planning outdoor get-togethers. When the nights get cooler, one fun gathering spot is a fire pit—imagine relaxing around a fire, sipping a warm drink, maybe roasting marshmallows with the kids.

Florida homeowners don’t usually need a fire permit for a small fire such as one in a fire pit, but you may want to check with your homeowners association to see if there are any regulations to be aware of.

Fire pits can be either portable or built-in, and if you’re thinking of installing one, or enjoying one you already have, here are a few basic fire pit safety tips so you and your guests don’t get burned.

Preparing the fire pit

When deciding where to put your fire pit, be sure to position it at least 10 feet away from any structure (including your neighbor’s house). Be careful that there are no tree limbs or other flammable items hanging over the fire. You don’t want any flying sparks or embers to set landscaping or structures alight.

Make sure portable firepits sit on flat, even ground, on a non-flammable surface like pavers or concrete. Don’t put them directly on grass, leaves, or a wooden deck.

Before lighting the fire, check wind direction and strength. Windy conditions can send sparks or embers where you don’t want them.

Only burn clean-burning wood that isn’t stained, painted, or treated in any way. Do not burn yard waste, trash, or other combustibles in your fire pit. And don’t use fuel such as gasoline or lighter fluid to light or relight your fire. Taking care in what you burn will help ensure an even-burning, manageable fire.

Around the fire

When it’s time to enjoy your fire pit, arrange chairs a safe distance away, and keep hands and clothes away from flames. Keep children and pets a safe distance from the fire. Never leave the fire unattended by a responsible person.

You’ll also want to keep a hose, fire extinguisher, or bucket of sand or water nearby in case you need to put out the fire in a hurry.

When you’re done, put the fire out with water. Then stir up and spread out the ashes so they can cool. Dispose of ashes safely, making sure they are completely cooled.

L & M Insurance Group wishes you a safe holiday season

Sometimes, despite your precautions, accidents happen. If your home is damaged by fire or other covered peril, or if someone is injured at your home, that’s when your homeowners insurance will be there for you.

We hope you’ll consider giving L & M Insurance Group the chance to serve your insurance needs, whether you need homeowners, auto, commercial, or life insurance.  You can reach a licensed, independent agent by calling (813) 672-4100, or you can request information online here.

No matter what your plans are, L & M Insurance Group would like to wish you a safe and fun holiday season.

For more holiday fire safety tips, please click here.

post

Do You Need Flood Insurance Even if You Don’t Live in a Flood Zone?

by Posted in Flood Insurance Tagged , ,

You know waterfront living carries risk of flooding, but did you know that about 25 percent of all flood claims come from moderate- to low-risk areas?

Every year, thousands of homes flood that aren’t in a designated flood zone.  Because Florida has flat terrain, low elevation and a high water table, realistically, nearly the whole state is a flood zone.

Flood facts

Flooding is the most common and expensive natural disaster homeowners face. Many Florida homeowners don’t realize that standard homeowners insurance doesn’t cover flooding. For flood coverage, you need a separate flood insurance policy.

Flood insurance covers physical losses to the structure of your home, including systems like plumbing, electrical, and HVAC, as well as your personal belongings up to the policy limit.

Floods can result from many causes, such as heavy rains, flash floods, storm surge, ground water rising, rivers overflowing. New land development can change the way water flows, affecting your risk of flooding. Flood damage is extremely costly. According to Floodsmart.gov, just one inch of water can do an average of $25,000 damage to a home.

Why does it cost so much to repair? Because flood waters not only damage belongings like furniture and appliances, they also wreak havoc with the structure and systems of your home. Flooding can also contaminate wells or carry debris that clogs septic tanks. And if flood water comes into your home, mold and mildew may grow on anything the water touches.

Flood insurance options

Homeowners may choose to buy flood insurance two ways, through FEMA’s National Flood Insurance Program (NFIP) or through a private flood insurance company. For many years, the NFIP was the only choice, but new technology has made flooding more predictable, so more private insurance carriers are entering the flood insurance market.

Either option will provide insurance coverage for flood damage, but there are some advantages to buying a flood policy from a private insurer. With the NFIP, coverage is capped at a $250,000 limit—that may not be enough to cover your losses. You can get higher limits with private insurance companies. You’ll also have a 30-day waiting period before your flood coverage goes into effect with the NFIP that you often won’t have with a private flood insurance provider.

Call us for a quote!

If you need a quick and easy flood insurance quote for your home (or your business), give L & M Insurance Group a call at 813-672-4100, or click here for an online quote. Our independent agency writes with many quality insurance carriers for all insurance needs—including, home, auto, flood, and commercial insurance throughout Florida. Let us help you find the coverage you need to protect your most valuable investments: your home, your vehicles, and your business.

post

How Your Credit Affects Your Insurance Premiums

by Posted in Auto Insurance, Homeowners Insurance, Uncategorized Tagged , , , , , ,

As you’re shopping for home or auto insurance, you might come across the concept of the credit-based insurance score, or simply the insurance score. Hmm, that’s odd. What does credit have to do with insurance risk, and how does it affect the cost of your insurance? Does having good or bad credit affect your insurance policy premiums?

Your Credit Score may affect the Price of your Insurance

Your credit score may be affecting how much you pay for insurance. Most homeowners and auto insurance companies in Florida use credit-based insurance scores as part of the process of setting their insurance rates.

Read on for the answers to five commonly asked questions about credit scores and insurance.

1. What’s the difference between credit score and insurance score?

Credit-based insurance scores (or insurance scores) are ratings based on your consumer credit information. They use much of the same information to provide a rating as credit scores do—payment history, outstanding debt, pursuit of new credit, credit mix—but they are used to predict insurance losses. As with credit scores, the higher your insurance score the better, because, according to the Insurance Information Institute (iii.org), “Insurance claims tend to decline as credit scores improve.”

2. Why do insurance companies use credit information to rate premiums?

Insurance scores were developed in the 1990s to help insurance companies more accurately underwrite and price insurance policies. Though they are not the only measure used to rate a policy (see below), the industry has determined that “…people who have low insurance scores, as a group, account for a high proportion of the dollars paid out in claims.” (Source: iii.org.) Experts speculate that the connection is behavioral—those who manage their money and credit well tend to manage other areas of their lives, such as maintaining their homes and vehicles, in a responsible way, which reduces risk.

Also according to iii.org, when insurance companies use credit-based insurance scores, many people (more than 50%) see lower insurance rates overall because insurance companies are able to price coverage that reflects risks more accurately.

3. Does it hurt my credit rating when an insurance company asks for my credit info? No. When an insurance company requests information about your credit, it’s not considered a “hard credit pull.” Hard credit inquiries result when you apply for a loan, mortgage, or credit card.

4. What other information is used to determine home and auto insurance premiums?

In addition to insurance scores, for auto coverage, insurance companies will use some combination of your geographical area, model of vehicle, accident history, age of drivers, driving records, insurance claims, and sometimes how many miles you drive in a year. For homeowners insurance, they will consider things like the home’s age and construction, cost to rebuild the structure in case of a total loss, location, proximity to water for firefighting, and flood risk.

5. How can I improve my credit/insurance score?

This is a great question since people with higher insurance scores usually pay somewhat less for their insurance. First, check your credit score yearly. By law, you’re entitled to one free credit report each year from the national credit reporting companies Equifax, Experian, and TransUnion. Read over your report and correct any errors that might be bringing your score down.

The best thing you can do to improve your credit score is to make your payments on time, including bills, taxes, and any fines or fees you need to pay. It also helps to pay off your credit card balances or keep them as low as possible. If you need to apply for a new credit card or loan, try to wait six months or so between applications—applying for too much credit at one time can temporarily lower your credit score.

Remember, if you do improve your credit score, make sure you compare insurance rates at renewal time. Don’t just assume your insurance premium will decrease.

Shop your insurance with an independent agency

Whether you have good credit or bad credit, L & M Insurance Group can help you find auto and home insurance coverage at the most affordable price. Because we are an independent agency, we write with many different insurance carriers and have more options to choose from than a captive agency. Let our agents shop for your best insurance deal—call us at 813-672-4100, or click here to contact us online.

post

 Safe Driving Tips for the Holiday Season

by Posted in Auto Insurance Tagged , , , ,

Most of us are looking forward to spending more time with family and friends during this holiday season. These get-togethers might take place in our own communities or at a far-off home of a loved one. Unfortunately, there’s always an uptick in traffic accidents, injuries, and deaths during the holiday season. In fact, according to the National Safety Commission, “Traveling by car has the highest fatality rate of any major form of transportation based on fatalities per passenger mile.” This is likely because there are more drivers on the road, and those drivers may be distracted, in a hurry, driving on unfamiliar roads, or even driving while under the influence.

Whether you’re driving across town or halfway across the country, here are some tips to help you drive safely this holiday season.

Before you leave

Safe holiday driving starts before you even leave your house. If you’re planning a road trip for the holidays, spend a little extra time preparing yourself, your family, and your vehicle before hitting the road. Gas up the car and have it serviced, if necessary, and make sure you have an appropriate vehicle emergency kit. Sign up for weather alerts at your destination and along your route or check the weather online. You may be driving in weather conditions you’re not used to. Also check traffic reports to see what to expect. If you’re using a GPS, program your destination in before you leave. If you’re using an old-school map, review your route before buckling up.

Get a good night’s sleep the night before your trip so you’re not driving drowsy. And no matter how short a distance you’re going, allow plenty of time to reach your destination without rushing. Drive at speeds safe for traffic and road conditions.

Everyone in the vehicle should have their seatbelts buckled, and small children should be strapped into an approved car seat.

On the road

No matter how far your destination, always drive defensively. You can’t control what other drivers do, but if you stay alert and practice defensive driving, you should be able to react more quickly to an emergency. Defensive driving practices include being aware of what is happening around you—frequently check ahead, behind, and in your blind spots. Stay out of others’ blind spots if possible. Don’t follow too closely. Use the three-second rule: Note an inanimate object and count the seconds between when the vehicle ahead of you passes it and you do. A three-second gap enables you to stop in time if the vehicle ahead of you ahead stops suddenly.

Another key to safe driving is to stay focused when you’re behind the wheel. You know you shouldn’t talk or text while driving, but did you know that animated conversations among passengers, listening to or changing the radio station, and eating or drinking can also distract you from your driving? Do your best to keep your full attention on the road.

Never drive while impaired by alcohol or drugs (even some over-the-counter drugs can cause impairment). Designate a driver, or call a taxi or ride share service.

Safe drivers pay less for their auto insurance

Safe driving during the holidays—and all year long—can not only help protect you and your family from danger, it can help you save money on your auto insurance. If you need car insurance, or any other type of insurance, please call your friends at L & M Insurance Group (813-672-4100) or contact us online. L & M Insurance Group is an independent agency located in Riverview, Florida, serving Riverview, Brandon, Tampa, Valrico, and surrounding communities.

We wish you a safe and happy holiday season!

post

Choosing Medicare Options That Are Right for You

by Posted in Health Insurance Tagged , , ,

Nearly 4.8 million Floridians are enrolled in Medicare, the U.S. health care program for people over 65. If you’re one of them, you probably know that during the Annual Enrollment Period, from now until December 7, you have the opportunity to change how you receive your Medicare benefits. Changes you make now will take effect beginning Jan. 1, 2023.

Original Medicare or Medicare Advantage

You can receive Medicare benefits in one of two main ways: Original Medicare, which is a fee-for-service health plan with two parts: Hospital Insurance (Part A) and Medical Insurance (Part B). Once you pay a deductible, Medicare pays its share of the Medicare-approved amount, and you pay your share. If you need drug coverage, you can add a separate Medicare drug plan (Part D).

The second option for receiving Medicare benefits is Medicare Advantage, also known as Medicare Part C. Medicare Advantage is provided by private insurance companies that contract with Medicare. Plans include part A, Part B and usually Part D. They may also offer extra benefits that Original Medicare doesn’t offer, such as vision or dental. The number of Medicare Advantage plan choices continues to increase—according to the Tampa Bay Times, “Floridians enrolled in Medicare will be able to choose from 627 Medicare Advantage plans compared to 583 plans in 2022.”

Considering your options

So how do you choose?

Coverage is very similar. Both options cover most medically necessary services and supplies related to care in the hospital, your doctor’s office, and other healthcare facilities. Main differences include things like doctor and hospital choice (with Medicare Advantage, you need to stay in the plan’s network for non-emergency care), whether or not you need a referral to see a specialist, and as mentioned above, whether or not some routine exams—vision, dental, hearing—are covered. Medicare Advantage plans are increasing in popularity among Medicare-eligible seniors, largely because of the added benefits available as well as the cap on out-of-pocket costs, something Original Medicare doesn’t have.

As you consider your options, think about what type of healthcare needs you’ll have over the coming year. Of course, unexpected things happen, but you may already know you’ll need to see a specific doctor, or you’ll need certain prescription drugs over the course of the year. Once you have this figured out, you can compare plans to see which one is right for you. It pays to spend some time comparing the total you’ll pay for medical care, including premiums, co-pays, and deductibles for each option.

For more in-depth information on how Medicare Advantage and Original Medicare plans compare with each other, click here.

How L & M Insurance Group can help

Sound confusing? If you’re interested in finding out more about Medicare Advantage plans, L & M Insurance Group can help. In addition, we can also help if you want to stay with Original Medicare, but you want a supplemental policy (“Medigap”) to help cover your deductibles and coinsurance costs. A supplemental policy may be cheaper for you than covering all the out-of-pocket costs on your own, especially in the event of a catastrophic illness. We represent companies that offer Medicare Advantage, Medigap, and Medicare Prescription Drug plans, including UnitedHealthcare and Aetna. We’ll be happy to help you decide if one of these plans makes sense for you. Please call us at 813-672-4100, or click here to contact us online.

For additional information on Medicare benefits and plans, please see  https://www.medicare.gov/.