What Does Golf Cart Insurance Cover

Each U.S. state has its own laws regarding golf carts, including: 

• Who can legally drive them?
• Where they can legally be driven?
• When they can legally be driven?
• What insurance, if any, is required or recommended?

Senior Transport

Golf carts aren't just for use on the golf course.  They can often be seen buzzing around gated communities and are especially favored by seniors for traveling short distances in lieu of walking, particularly when transporting various items.  They can be seen at swap meets where there may be lots of ground to cover or on large properties where distances between buildings may be too great for easy walking for some.

Golf carts may be driven on public roads in North Carolina provided applicable laws are followed.  These include the following:

• Driver must be at least 16 years of age and licensed to operate a motor vehicle in the state.
• A golf cart may only be operated during daylight hours unless fitted with two headlights and two tail lights, in which case it may be driven during any hours.
• Golf carts may only be driven on public secondary roads with posted speed limits of 35 mph or less.
• Golf carts on public roads must be registered with the NC DMV and drivers must have proof of ownership.
• A minimum amount of golf cart insurance (liability coverage) is required and proof of this insurance needs to be carried when you're operating your cart.

NC Golf Cart Insurance 

Golf carts driven on public roads in North Carolina are required by state law to be covered by at least a minimum amount of insurance in the form of liability coverage.  Like requirements for other motor vehicles driven on North Carolina's public roads, minimum golf cart insurance requirements include:

1. Bodily injury liability coverage amounting to $30,000 for one person per accident and $60,000 for all persons per accident
2. Damaged property liability coverage of $25,000 per accident

As with your standard automobile insurance, golf cart coverage is available with a number of options beyond the required liability protection.  These options include:

• Collision - pays toward the cost of repairing your cart if it's damaged in an accident
• Comprehensive - pays toward repairing or replacing your cart if damaged or destroyed in a non-collision loss such as fire, theft or vandalism
• Medical Payments - pays toward medical expenses if you or your passengers are hurt in an accident

 

 

How Do Car Insurance Companies Set Rates?

All types of insurance, including car insurance, involve a transfer of risk between two entities - the insured and the insurer.  As a car insurance policyholder, you're contracted with your insurer for them to underwrite a number of the risks posed by the ownership/operation of your vehicle.  The number of risks being underwritten will partially determine premium rates.  The greater the risks being underwritten, the greater the policy premium costs.

These risks protections may include:

• Liability coverage for bodily injury or death of a third person or persons (legally required coverage in NC)
• Liability coverage for property damage of a third person or persons (legally required coverage in NC) 
• Uninsured motorist coverage (legally required coverage in NC)
• The risk of collision
• The risk of a non-collision loss such as fire, theft, vandalism or severe weather damage
• Personal Injury Protection to help toward the medical costs of your own injuries, regardless of who is found to be at fault

Collision coverage is typically the most expensive portion of a car insurance policy, since the risk of a costly claims payout may be greatest in a serious collision deemed your fault.  This high cost can be reduced by increasing your deductible amount from, say $500 to $2000.  The amount of your policy deductibles is another factor affecting your final policy rate. 

Other Factors Affecting Car Insurance Rates

A broad range of data is used by car insurers to determine rates.  Some factors are more important than others but, taken together, they give underwriters a good idea of what kind of insurance risk you represent to their company.  Consider the following:

• A major rating factor, especially for young drivers, is policyholder age.  The most expensive rates are for teenagers and the least expensive are for those drivers in their 50s.  The reason is because teens have proven to be faster, more reckless and aggressive drivers.  Higher risks equal higher premium costs.
• Driving history - a history of moving violations and/or accident claims are a red flag and will cause higher costs.
• Location plays a role because certain zip codes show higher accident rates and higher risk of theft, vandalism, wildfires or floods.
• Gender - primarily affects young drivers.  Young males are more likely to drive recklessly than females.
• Mileage traveled - more miles driven means higher risk to your insurer.
• Age and value of your vehicle plays a role in rating your insurance.