Your Guide to Golf Cart Insurance and Why You Need It

Even if golf cart insurance is not required by your HOA or state, it is still a good idea for golf cart owners to insure their golf carts. If you use your golf cart on a regular basis and rely on it for either regular transportation or recreation, insuring it is never a bad idea. The following will determine what kind of insurance and the cost:

• Usage type and frequency
• Aftermarket modifications
• Where it is driven

What Type of Golf Cart Insurance Do I Need?

In many communities, the HOA requires golf cart owners to purchase specific insurance for their golf carts and name the HOA as an additional insured. Prior to purchasing insurance, check with your HOA. If you use your golf cart around your property, it can be included on your homeowner's insurance policy with an endorsement. If you drive on the street and your cart is considered to be a Low Speed Vehicle or All-terrain vehicle, it is smart to purchase an auto policy specific to golf carts.

 Getting the Best Deal on Golf Cart Insurance

Golf cart insurance is fairly reasonable and there are several ways to save additional money on it:

• Invest in a security device. Just as in a standard vehicle, insurance companies love when the chances of theft are low. Install an easy to install wireless camera system to monitor your golf cart or garage right from your smart phone. Motion sensors will alert you to a theft in progress. My favorite and the one I use at my home is the Blink system. 
• Combine it with existing policies. Referred to as "bundling," obtaining your golf cart insurance from your current auto insurance company will save you money on the policy.
• Homeowners. Discounts are typically offered to golf cart owners who also own their homes.
• Switching. If you decide to switch your current auto policy and simultaneously add a golf cart policy, many insurance providers will offer a discount for switching.
• Motorcycle. If you have a motorcycle endorsement, you can likely save on the golf cart policy.
• Up-front Payment. Paying for the entire amount of the policy will save money.
• Deductible. As with most types of insurance, accepting a higher deductible will lower the amount of the policy.
• Safety Features. Adding safety features, such as seat belts and light kits can lower your premium.

How Much Will Golf Cart Insurance Cost?

Adding a golf cart endorsement to your homeowner's policy is the least expensive way to insure your golf cart and will cost $50-$200/year. If you purchase a separate golf cart policy, it will average $12/month, as long as it is driven within a golf course community. A speed modified cart that drives on the street is priced $400 to $1000 / year and will depend on your driving record and other factors considered with conventional auto policies. 

Keep in mind that if your golf cart is found to be used for business purposes, driven in an illegal manner, or outside of the range of coverages, the policy may not cover theft, damage, or injury. 

To learn 5 Ways to Protect Your Golf Cart from Thieves, read more here.