The complaints we receive cover a wide range of issues: basement flooding damage caused by a next-door neighbor’s hose that was left on all night; water damage as a result of an upstairs neighbor’s overflowing tub; or a tree on a neighbor’s property falling onto a client’s fence or car. We have also had calls about a neighbor’s ladder falling and shattering a client’s window, and complaints about a neighbor’s dog scratching through a client’s brand new screen door.

Of course, if all neighbors had the proper insurance, these situations would be easier to manage. But what can you do if your neighbor damages your property and has no insurance?

The quickest way to get your property repaired may be to call your insurance agent in order to make a claim on your own insurance policy—provided that you have proper coverage and the damage is over your deductible.

Many of our clients get upset when we suggest this, as they believe their rates will go up if they make a claim on their own policy—which is not always true—or they do not feel they should have to pay for the damages when the incident wasn’t their fault.

“What else can I do?” is the usually the next question they ask.

The next steps to take

In the event of a neighbor’s tree falling on your fence, house, or car because of high winds, there isn’t anything else you can do. Your neighbor cannot be held legally responsible if a windstorm or snowstorm caused the damage because it is the result of an act of nature.

On the other hand, if you see that a neighbor has a decaying tree that could cause future damage, and that neighbor does not want to listen to your requests to have the tree trimmed or cut down, you have options. Consider sending a certified letter to the neighbor, as well as to the city or the town in which you live, so that your concern is in writing. By doing so, you have some recourse in a court of law if the tree causes property damage in the future.

If the tree—or something else that belongs to your neighbor—does cause damage, talk with the neighbor and attempt come to some kind of friendly resolution, such as the neighbor paying for all or part of the damages.

If that fails, which it often does, then a visit to small claims court may be your next option. Depending on the state in which you live, you may be able to file a judgment against your neighbor for damages of up to $10,000 without hiring an attorney.

If you win your case, a recorded abstract of judgment—a written summary that states how much your neighbor owes you—will place a lien on your neighbor’s real property. While you may not get reimbursed immediately, your neighbor may not be able to sell his or her house, refinance his or her mortgage, or purchase another property without settling this lien.

Check with the small claims process in your state for more details on how to file and what documentation you will need to make a legitimate claim. Of course, if that is not an option for you, there is always the choice of hiring an attorney to do the battling for you.

Is this worth pursuing?

Keep in mind that all of the above steps can be time consuming, emotionally draining, and costly. Think about the total cost of the damage and decide whether you’d rather just move on. Ask yourself the following questions:

• Is settling the claim worth the strife with your neighbor?
• How much time and energy will be taken away from your job and/or family in resolving this matter?
• Is this time and cost more than the price of the damage?
• Is the damage more than the cost of your deductible, and might it be best to make a claim on your own insurance policy?
• Should you simply pay for the repair yourself, knowing it will be fixed properly, and then opt never speak to your neighbor again?
• Is now the time to move?

Heidi Petschauer Fox graduated from St. John’s University in Queens, N.Y., in 1983 with a B.S. in management. She joined her late father’s firm, Petschauer Insurance, in 1982, became principle in 1995, and now shares ownership with her partner and cousin, Erwin Petschauer. She received her Certified Insurance Counselor (CIC) designation in 1997. She currently facilitates the professional and creative development of the entire Petschauer team and manages the personal lines and social media departments.

With all this outdoor entertaining, it’s important to ensure you have the proper homeowners insurance to cover your property in case of damage, and to help protect against any injury liability claims.

“The outdoor space is something that people don’t think about much. If they think about home insurance, they think mainly about their house structure,” says Amy Danise, editorial director of Insure.com.

You may want to review your homeowners insurance policy this summer if:

1. You’ve made recent outdoor improvements and they might not be included. If you’ve added a hot tub, pool, outdoor kitchen, gazebo, or storage shed, check to see if it’s included under your current policy.

Generally, other structures are covered as a percent of your dwelling coverage, Danise says. For example, if your house is insured for $200,000, the other structures on your property are typically insured for 10 percent of that amount.

2. Your outdoor property is in bad condition; you could be on the hook financially if someone is hurt on your property. Check the condition of your outdoor property to help protect yourself from injury claims against your homeowners insurance policy. Make sure your deck and stairs are in good shape. Look for any wood decay, which can weaken the structural integrity of your deck. Fix any areas that need work, and perform ongoing maintenance.

Be aware that some outdoor damage to your property may not be covered under your homeowners policy, especially if the damage could have been avoided with routine maintenance. Damage from termites, insects, birds, rodents, rust, rot, or mold may not be covered.

3. You may not have enough coverage to protect you in the event someone is injured during a summer get-together. Figure out how much liability protection you have, as this can protect you against property damage or bodily injury claims if, for example, someone is injured at your barbecue or hurt in a pool accident. The standard coverage amount is from $100,000 to $300,000. Talk to your insurance professional to determine if this is enough coverage for your situation.

4. You think it may be time to purchase additional coverage. Consider purchasing personal liability umbrella coverage. Because astronomical lawsuits are not uncommon, personal liability umbrella insurance provides additional coverage—on top of your existing auto and homeowners policies—in increments of $1 million.

“It’s a pretty cheap way to buy extra liability,” Danise says. “And it generally goes on top of your home and auto insurance.”

Umbrella policies go into effect after the main liability limits on your homeowners or auto policy are exhausted. So you will need to have a high liability, like $300,000, in your main policy, and then you can buy an umbrella policy to extend the amount, she says.

5. You aren’t taking advantage of available savings. Review your homeowners policy periodically to make sure you are familiar with its coverage and to ensure you are taking advantage of any applicable discounts. Don’t get caught by surprise. “Check on your deductibles to make sure you’re aware of how much you would have to pay out if you have property damage, like a fire,” Danise advises.

This summer, enjoy your outdoor entertaining space—just make sure it’s adequately covered under your homeowners insurance to prevent a dreamy summer day from turning into a nightmare.

A Chicago-based writer and editor, Eve Becker writes about personal finance, health and other topics. She is a former managing editor of Tribune Media Services.

Vendor problems in general topped Travelers’ list of most common wedding insurance policy claims, accounting for 24 percent of all wedding claims received. While 58 percent of these vendor-related issues involved problems with wedding photos and videos—like damaged photos or unfulfilled orders—21 percent of vendor issues involved caterers going out of business, 11 percent were caused by DJs missing the big day or going out of business, and 5 percent of claims involved debacles with wedding planners.

And wedding day mishaps don’t end there. Wedding claims having to do with illness and injury represented 19 percent of last year’s total, followed by claims having to do with venue issues (15 percent) and weather (14 percent). Couples also filed wedding claims for theft and damage, unforeseen military deployment, and attire issues (such as a wedding dress or tuxedo that was delivered in the wrong size or color).

Because a great deal of time and money are invested in a wedding to ensure that the event runs smoothly and is completely free of drama, any last-minute problems could cause a financial blow as non-recoverable deposits and purchases go down the drain. That’s why many soon-to-be-wed couples consider getting wedding insurance for their big day.

Fitting a wedding insurance policy into your budget

The average wedding today costs about $25,000, which is close to the price tag of a new car. Photography and videography alone can cost couples more than $4,000.

While the price of wedding insurance varies depending on the amount of coverage required, the Insurance Information Institute estimates policies will usually cost between $125 and $400.

“I know it seems overwhelming when you are planning the wedding and you seem to be writing checks all the time, but really [a wedding insurance policy] is minimal cost for a lot of protection and peace of mind,” says Chantal Cyr, vice president of Travelers Personal Insurance.

If you are thinking about purchasing wedding insurance before walking down the aisle, Cyr recommends a policy with cancellation and postponement coverage, which would provide protection in cases like an immediate family member becoming ill or the wedding venue going out of business.

You and your soon-to-be spouse may also want to consider coverage for photography and videography (given the percentage of claims filed within this category last year) as well as additional expense coverage, which would apply if the venue were to go out of business, requiring the wedding to relocate to a more expensive site.

Over the last couple of years, venues have asked brides and grooms to purchase their own liability insurance, even if the venue has its own policy, Cyr says. Liability insurance, which would provide coverage if someone is injured at the wedding or if there is damage done to the venue, can often be added on to a basic wedding insurance plan.

Finally, when shopping around for a wedding insurance policy that meets the requirements of your special day, remember that a change of heart—the bride or groom deciding not to go through with the wedding—is normally excluded from coverage.

Joslin Woods is a researcher, writer, and Web producer at Think Glink Media, with a background in print and digital media. Previously, Joslin worked as a news reporter for the international news agency Agence France-Presse and as a freelance reporter for the Sun-Times News Group. She is a graduate of Vanderbilt University and Northwestern University, where she received a master’s degree in journalism.

According to a recent survey done for InsuranceQuotes.com by Princeton Survey Research Associates International, only 10 percent of Americans claim to be very knowledgeable about the Affordable Care Act, commonly known as Obamacare.

“People in general are not very well informed about the [Affordable Care Act], and I think the primary reason is the most significant parts of the law haven’t gone into effect,” said Alan Weil, executive director of the National Academy for State Health Policy.

Many of the survey respondents weren’t aware of when changes would go into effect, and they also didn’t know when they’d need to sign up for health insurance exchanges.

These exchanges are government-run marketplaces—primarily online—where people can compare and purchase an insurance policy, with a set of in-person options to help customers navigate the marketplace.

“There’s certainly an understanding that you can’t make this work if all you do is sort of send people to a website,” Weil said.

Exchanges will be run by individual states, by the federal government when states have chosen that option, or by a partnership between a state and the federal government.

However the exchange is run, the options and benefits available in the exchanges will be virtually the same, Weil explained. “Their functions are identical. They’ll find out if you’re eligible for a subsidy, give you options of plans, and get you enrolled.”

In general, plans offered through the exchanges will look much like private insurance plans do now, although they’ll be more structured and there will be some improvements in the nature of coverage.

According to Weil, insurers in the exchanges are required to offer “essential health benefits,” which are the types of services that have traditionally been covered by typical employer-sponsored health plans.

The health insurance plans offered will vary from state to state, but all plans will be required to offer certain federally-mandated options, like coverage for preventative services, maternity services, and pharmaceutical services.

Depending on income and family size, people may qualify for free or significantly discounted insurance plans through an exchange. According to healthcare.gov, a website set up by the federal government to explain recent and ongoing changes in health care laws, a new kind of tax credit will also become available.

People will not be required to purchase insurance through the exchanges—insurance through the private market will still be available.

“Very, very few people who have insurance through a job will want to switch over. I wouldn’t even encourage those people to give it much thought in the first year,” advised Weil. “It’s very unlikely someone with employer-covered health insurance would find themselves better off in the exchange—unless they’re getting very skimpy coverage through work.”

Those with comprehensive coverage through an employer aren’t eligible for most subsidies in the exchange. In fact, the primary targets of the exchanges are uninsured people or people—often those who are self-employed—that are currently buying insurance on their own.

Information on insurance plans that will be available through the Health Insurance Marketplace can be accessed now at healthcare.gov.

Enrollment in the new health exchanges will begin Oct. 1, 2013, and coverage through the exchanges will begin Jan. 1, 2014.

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink Inc. Prior to joining Think Glink, Michelle worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues and crime. She now specializes in real estate industry news, consumer financial reporting and home design and decor. She is a graduate of DePaul University in Chicago.

According to the U.S Geological Survey (USGS), earthquakes pose significant risk to 75 million Americans in 39 states. While California carries two-thirds of the nation’s earthquake risk, according to the Insurance Information Institute (III), earthquakes hit many other parts of the country, too.

Historical norms aren’t always a good guide. If recent weather conditions, like droughts and flooding, are not corresponding to historical norms, who’s to say fault line activity won’t diverge from historical norms as well?

Take Superstorm Sandy: Many of the impacted areas weren’t prone to extensive flooding prior to the storm. Because of this, many residents did not have flood insurance. When these homeowners fell victim to flooding and wind damage from the powerful storm, it was too late to get coverage.

Earthquakes are no different. It’s not just Californians who may want to think about coverage. East Coast residents, for example, have experienced tremors in the past, and Virginia—not normally thought of as a hotbed of earthquake activity—experienced a 5.8 magnitude earthquake in 2011.

This begs the question: How do you figure out whether you need this coverage?

Start by checking out the seismic hazard maps provided by the USGS. These maps, which are broken down by state, can give you an idea of the probability of an earthquake hitting your area.

Earthquake insurance can provide protection against shaking and cracking that can destroy buildings and personal possessions; costs incurred from stabilizing the land under your home; costs associated with debris removal; and living expenses you may have while your home is being rebuilt or repaired.

It is strongly suggested that you review you coverage and discuss your options with your insurance provider. Remember to ask whether the policy you’re considering covers the aforementioned natural disasters that often occur because of an earthquake. If not, ask about the availability of supplemental coverage.

Other damage that may result from earthquake activity, like fire or water damage, may be covered under your homeowners insurance policy, but be sure to confirm that this is the case with your existing policy.

I have yet to meet an insurance professional who can predict the future. While we have the ability to model a homeowner’s exposure to certain events, it’s impossible to be 100 percent certain. If you feel you could be at risk of experiencing an earthquake in your area, now may be the time to talk to your insurance professional about coverage.

Karen Skoler has been in the insurance business since 1969 with a background in marketing, claims, servicing, sales, and supervising with both insurance carriers and independent agents. She earned her Chartered Property Casualty Underwriter designation in 1994.

Presently, Karen is employed as a commercial lines manager at Petschauer Insurance Agency in Ridgewood, NY. She often writes content for blogs in the interest of helping people understand insurance coverages they have either purchased or are contemplating purchasing. You can follow her blog posts at www.jpins.com.

Scenario #1: Injuries to a guest in your home

Whether you have a pet who nips a visitor or your child hits a baseball through a neighbor’s window, renters insurance may help protect you, provide defense, pay for damages, or investigate allegations when claims are made against you by third parties.

For example, consider an elderly customer of mine who was at home recuperating after a heart attack. During a visit with a friend, his guest tripped over a loose wire and fell, breaking an ankle. Unfortunately, the elderly customer did not purchase renter’s insurance because, he said, at his age he had nothing worth insuring in his apartment.

Had he purchased renters insurance, however, his insurance policy may have provided medical payments for his injured guest. It also may have provided liability coverage, or at the very least defense costs, potentially protecting him against lawsuits from the guest.

Scenario #2: Building malfunctions

Contrary to popular belief, your landlord isn’t always responsible for damage caused to your possessions from building-related issues.

Case in point: My mother, who resided in an assisted living facility for the last seven years of her life, came home after an afternoon of shopping to find that her room had been inundated by water. The cause was an overflowing toilet in her room that would not stop running. Many of her possessions were damaged beyond repair. Had she not had renters insurance, she would have been on the hook for replacing them. Luckily, she had heeded my warnings and purchased a renter’s policy some months prior to the loss.

Her policy paid for the replacement of the items under the replacement cost provision of her policy. Needless to say, she was thrilled with her insurance purchase after that event.

Scenario #3: Off-premises events

Many renters insurance policies can also cover losses that occur away from the rented home.

In one case, a friend’s daughter took her new comforter, computer, and clothing to college, only to have everything destroyed in a dorm fire during the first week of school. Happily, she learned that under her parents’ renters policy, 10 percent of the coverage carried by the parent’s in their residence could be allocated to the contents lost in their daughter’s dorm room fire.

My father always said, “Ignorance isn’t bliss—it’s just ignorance.” In the case of renters insurance, ignorance can be very costly. To decide whether renters insurance is right for you, make a list of your personal possessions and their estimated replacement costs, and weigh those costs against the cost of an annual renters policy.

Then, consider the aforementioned scenarios. Could one of these happen to you?

Karen Skoler has been in the insurance business since 1969 with a background in marketing, claims, servicing, sales, and supervising with both insurance carriers and independent agents. She earned her Chartered Property Casualty Underwriter designation in 1994.

Presently, Karen is employed as a commercial lines manager at Petschauer Insurance Agency in Ridgewood, NY. She often writes content for blogs in the interest of helping people understand insurance coverages they have either purchased or are contemplating purchasing. You can follow her blog posts at www.jpins.com.

Whether you are gearing up for a trip to your storage unit to pack away more stuff or thinking about renting a storage unit for the first time, you’ll want to make sure you have the insurance policy you need to protect your belongings.

“If an item is valuable enough that you are willing to pay for storing it, the item should be financially protected with the proper amount and type of insurance policy,” says Loretta Worters, vice president of communications at the Insurance Information Institute.

“Even in the best managed storage facilities, theft, fire, and other disasters can and do occur. That’s why before signing a rental agreement, it is important to find out what types of losses will be covered by the storage facility and whether supplemental insurance may be needed.”

Before you start rummaging through your closets and drawers deciding what can be stowed outside of your home, consider these six questions to make sure your storage insurance needs are met.

1. Do you have off-premises protection through your homeowners or renters insurance?

Before purchasing any additional insurance for your stored items, make sure to check how much off-premises coverage is included in your homeowners or renters policy, says Pete Moraga, spokesman for the Insurance Information Network of California.

If you have off-premises protection, the items in your storage unit might already be covered from fire damage, theft, tornadoes, and other disasters listed in the policy.

Off-premises coverage will vary by state and policy—some insurers may limit the off-premises coverage for personal possessions to 10 percent of the overall amount of your homeowners insurance, according to the Insurance Information Institute.

Regardless of the total amount of off-premises coverage, there may also be a limit per item. Most standard homeowners and renters policies limit the dollar amount for theft of personal possessions, like jewelry, to $1,000 to $2,000.

2. What type of insurance is available through the storage facility?

Your storage facility will probably require your insurance to cover the full replacement cost of the belongings in your unit. If you need to supplement the coverage you already have, consider purchasing insurance from the facility itself.

Keep in mind that the majority of storage facilities will limit the value of property you can store in the unit based on the size and the amount of your rent. That limit is normally around $20,000, according to the Insurance Information Institute.

3. Do you need extra coverage for expensive items?

If you are planning to fill your storage unit with expensive items, like jewelry, art, or antiques, consider adding an endorsement, which extends the existing coverage, or a floater, which provides coverage for a specific item whether it’s in your home, your storage unit or on a trip with you, to your homeowners or renters policy.

There are special storage facilities that regulate temperature and humidity levels for valuable items, and a bank safe deposit box can be a good option for small pieces.

You can also pay for additional coverage through the storage facility, but some storage insurance might still exclude costly belongings.

4. What’s excluded from your policies?

In addition to valuable items, most insurance—whether it’s through your homeowners, renters, or storage facility policy—does not cover damage caused by flooding, earthquakes, mold, mildew, vermin, or poor maintenance.

“A storage unit may have a separate earthquake or flooding policy, but you can’t assume that,” Moraga says. “It’s one of the things you want to make sure you specifically ask.”

5. Is transportation covered?

If you are using portable on-demand storage, where you pack up the storage unit at home and then have someone take it to the facility, Moraga says to check if your insurance covers your belongings while they are being transported from house to storage unit.

6. Have you made a home—and storage unit—inventory?

While you are cleaning out the old to make room for the new, consider creating an inventory of all of the items in both your home and storage unit. This might seem like a daunting task, but it will help your determine if your insurance coverage is adequate and will also serve as an important resource if you ever have to make a claim. If you need help staying organized, check out home inventory software programs that allow you to scan photos and upload receipts.

Spring will be much more enjoyable if you are able to put a lock on your storage unit and know that all of your belongings are protected.

Joslin Woods is a researcher, writer, and Web producer at Think Glink Media, with a background in print and digital media. Previously, Joslin worked as a news reporter for the international news agency Agence France-Presse and as a freelance reporter for the Sun-Times News Group. She is a graduate of Vanderbilt University and Northwestern University, where she received a master’s degree in journalism.

Who is at fault in this sticky situation, and how is your unit covered?

“The worst thing is for folks to do nothing on the assumption that someone else’s insurance will cover the damage,” said Rich Rykens, a claims team manager from State Farm.

This could turn into a complex situation because multiple parties are involved, including the other condo owner and possibly the condo association. In addition, your condo association’s bylaws—and even state laws—may affect who ultimately foots the bill.

Although it’s difficult to look at this scenario and immediately determine who is responsible for the damage in your condo, there is a protocol that you can follow to get the mess cleaned up.

Be proactive. Immediately file a claim with your own insurance company, which may cover the damage according to the limits of your condo owner’s policy.

Unlike homeowners insurance, there is no standard insurance policy for condo owners. The type of insurance policy you have as a condo owner is dependent on the master policy held by the condo association. You probably contribute to this on a monthly basis through assessments. Although it differs from building to building, the condo association master policy usually covers the building’s structure, exterior parts, and shared spaces.

Once you file a claim with your own insurance company, it will investigate whether or not a third party—like the upstairs neighbor, the condo association, or a plumber—was responsible, said Justin Herndon, a member of the Allstate National Media Team.

If a third party is at fault for the damage in your unit, your insurance company will then subrogate the claim with that party, which means it will try to recoup what it paid out in the claim. If your insurance company is able to recover any of the costs, it may refund you for repairs paid for out of pocket, according to Rykens.

This procedure should apply to submitting insurance claims for other types of damage in your condo. Shared living spaces can be difficult at times, but as a condo owner, it’s important to read both your master and individual policies so you understand how you are covered before coming home to another accident.

Ilyce R. Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com and at the Home Equity blog for CBS MoneyWatch.

A package insurance policy—sometimes called trip insurance or a trip plan—usually features the most coverage in a single plan by bundling multiple types of coverage into one. This often includes coverage for cancelled or interrupted trips, medical emergencies, emergency evacuations, and lost luggage.

“[A package insurance policy] is a full suite of coverage, and that’s the most common,” says Jim Grace, CEO of insuremytrip.com, which acts as an insurance agent. “Many of the other areas of coverage or types of policies are monolithic and focus on specific coverage.”

Travel insurance typically costs between 5 percent and 8 percent of the insured trip, depending on factors like the type of plan and age of the traveler.

Whether you are shopping for a package policy, a travel medical plan, or a specialty policy designed for adventure travelers, ask yourself these four questions to help you with your purchasing decisions.

1. Is there a chance you might have to cancel your trip?

Whether you are staying within the country or traveling abroad this spring, ask yourself if there is any chance you might have to cancel your trip, especially if you are considering a package policy.

The cancellation coverage is usually what makes a package policy more costly than other plans, says Damian Tysdal, founder of Travel Insurance Review, an online travel insurance resource. But, he adds, extensive cancellation coverage is difficult to find anywhere else.

If you have to cancel your trip because of a weather disruption, a family member getting sick last minute, or an emergency at work, for example, your travel insurance could cover the lost costs.

2. Are you paying for travel activities in advance?

When considering the risk of canceling your trip, also think about how much money you will be paying before you even depart—for cruises, airfare, hotels, or organized tours, for example.

“Cruises and tours are notorious for bad cancellation policies,” Tysdal says. “At least with most airlines you can rebook the flight for a fee so there is some recourse there. With cruises, if you cancel anywhere within a month, I think you are losing at least 75 percent of the cost.”

On the other hand, if you are taking a spontaneous trip with minimal prepaid costs—such as if you are only paying for airfare—you may feel that you can absorb the cancellation risk on your own.

3. Are you traveling outside of the U.S.?

If you are traveling to an overseas destination, consider your medical coverage. Not all medical insurance plans provide worldwide coverage, according to Grace. Plus, if you are out of network for your policy, you could be faced with a large deductible. It’s important to note that Medicare recipients receive no international medical coverage.

Companies that provide travel insurance have networks of doctors and hospitals pre-screened around the world so they are equipped to manage your care abroad. If you are hurt overseas, medical evacuation coverage will take you to the nearest appropriate hospital to receive treatment or bring you home.

4. Is your trip covered through other types of insurance?

Some credit cards come with travel insurance as an added feature, but it may have a low annual limit. Check with your credit card company to see if the insurance provided meets your spring break needs.

If you are traveling domestically, your health insurance should have you covered most of the time, but make sure to familiarize yourself with your out-of-network deductibles.

Instead of coverage for lost luggage, your homeowners or renters insurance may cover off-premise theft, but again, check into the amount of the deductible. You may have to list specific items on your policy in order for them to be covered.

But given young drivers’ learning curve, families may want to find a mileage-based policy that offers savings, solid coverage, and the ability to improve their children’s road skills, from the first stop-and-go session in a parking lot to that more challenging trip down the interstate—and beyond.

Simply signing up for a mileage-based program may earn a minimal discount, but people who spend fewer hours behind the wheel can be eligible for further and more substantial reductions in premium. Less drive time can also help reduce bottom-line costs by cutting wear and tear on a vehicle, as well as fuel and maintenance costs. There is even a green benefit: Decreased driving leaves a smaller carbon footprint.

How mileage-based car insurance works

In a mileage program, a palm-sized device is installed in the car to track its overall performance and to record miles driven, speeds, rates of acceleration, braking, and time and location on the road. The unobtrusive monitor fits into a diagnostic port, usually under the steering wheel in most vehicles made after 1996.

Drivers—and their parents—can review the device’s data on a secure website. Knowing they are being monitored tends to have a positive influence on drivers, especially teens. A 2009 study by the Insurance Institute for Highway Safety showed that adolescents in mileage programs behave better behind the wheel. According to the Insurance Information Institute, car crashes are the prevailing cause of death among American teens, with excessive speed and distraction playing key roles, so this technology can be critical for young drivers. And adolescent drivers also are the most lethal, involved in three times as many fatal crashes as other drivers, according to the National Highway Traffic Safety Administration.

With Travelers’ IntelliDrive® program, customers can log in to a dashboard that provides detailed driving reports for as long as they are enrolled in the program. They also can set up time and distance parameters for their teens. Another option: text or email alerts to a parent if teens break curfew or go beyond agreed-upon limits.

Because the device and website are objective sources of data, the program lessens the eternal conflict between parents expressing legitimate concerns and teens primed to tune out such worry. The information gives parents a vital opportunity to coach their children on safe driving practices.

For example: If the data shows a teen accelerating too quickly or speeding, a parent can calmly explain, “With drivers racing through yellow lights and ignoring red ones, intersections can be tricky to navigate. That’s why so many accidents occur there. Slowing down and staying alert can help you through them safely.”

Parents have the most significant influence on their teens—despite the groans and eye rolling—and the enhanced skills learned within these programs can ultimately help young drivers.

Finally, do note that these programs can also benefit experienced drivers. The driver feedback they provide can go a long way toward recognizing and breaking bad habits while reinforcing and inspiring good ones.

Tony Hare is managing product director for Travelers Personal Insurance.