If you own a golf cart or are thinking of purchasing one, there are questions about insurance that will come up.
- Do you need golf cart insurance?
- What does a policy cover?
- Does my homeowners’ policy cover the golf cart?
These are all reasonable questions to which many of the answers are ‘it depends’.
Also, some Homeowner Associations (HOAs) require golf cart owners to carry insurance.
What is Golf Cart Insurance?
Golf cart insurance is a type of personal insurance policy designed to cover any damage to the vehicle or damage caused while it’s being used. The type of policy will depend on how the golf cart is used.
What Can it Cover?
Typical golf cart insurance policies provide:
- Property Damage Liability: This comes into play when another person’s property is damaged during an accident.
- Collision: This covers repair costs following an accident no matter who is at fault.
- Bodily Injury: This liability policy covers any injuries caused by an accident.
- Comprehensive: This covers damage to the golf cart that do not involve an accident. This can include theft, fire, hail and wind damage.
A golf cart can also be endorsed on some Homeowners Policies to cover loss and for liability coverage when used on a golf course, on public roads within one mile of a residence’s premises, in a planned community residential park, or similar limited access community.
The endorsement provides up to $5,000 actual cash value for direct and accidental physical damage to the golf cart.
What Does it Not Cover?
It depends on the type of golf cart you have, how you intend to use it, as well as the coverage that you need.
For instance, if you intend to use the golf cart on your own property, it most likely can be covered by your homeowners’ policy—it will need to be added as a rider to the policy, however.
If it is to be used within a gated community, the HOA may have certain insurance requirements of their own.
The insurance company will also want to know if the cart has safety features, such as seat belts and a horn. They will want to know if the cart has been altered to be a “low speed vehicle” or LSV.
Your car insurance cannot be used to cover the golf cart.
All of these things will affect the type of coverage available for the golf cart.
Are there Policy Limits?
The types of available policies will have different policy limits.
This depends on the type of golf cart, how it is used and if it is considered an LSV. It also depends on where the golf cart is used.
In Florida, for example, it is not uncommon for golf carts to be used on special public roads designated for golf cart use. In this case, the state does not require insurance.
However, in North Carolina and Nevada, minimum liability coverage is required.
Regardless of the state you live in, if the golf cart is used on a public road, it needs to be insured.
Another consideration is adding uninsured/underinsured motorist coverage. Just like an auto policy, it covers the cart when it is damaged by someone without insurance.
Getting coverage for your golf cart is a smart choice.