June 12, 2023 - The golf cart has infiltrated all corners of the country. Beyond the fences of your favorite course, golf carts are sunbathing in your neighbor's driveway, roaming that mysterious private community near your home, and even being driven on public highways. You might even be tempted to dip into the golf cart market yourself.

What kind of golf carts are there?

In 1998, the National Highway Traffic Safety Administration defined the different categories of golf "car" and created a new Federal Motor Vehicle Safety Standard for low-speed vehicles.

The conventional golf cart can be split into two categories:

(1) The "fleet golf car" is the type traditionally used by golfers on golf courses.

(2) The "personal golf car" can be used by individuals on the golf course and on public roads for purposes unrelated to golf.

Both fleet and personal golf cars have top-end speeds of less than 20 miles per hour.

Other golf carts feature more speed and additional safety features.

For example, many states permit the use of "low-speed vehicles" (LSV) on public roadways. The LSV is defined by federal regulation as a four-wheeled motor vehicle that can reach speeds of 20 to 25 miles per hour. 49 C.F.R. § 571.3. LSVs feature headlights and taillights, seatbelts and rear-view mirrors, and seat up to four people.

Is liability insurance coverage necessary?

There are roughly 15,000 golf cart related injuries every year. Rollovers and serious head injuries are not uncommon. So, liability insurance is a great thing to have even if it technically isn't required.

Imagine this scenario: Two golfing buddies, Andy and Carter, finish their round and get in Carter's golf cart. Carter brags to Andy about how his cart is a "top of the line" LSV that goes up to 25 miles per hour.

Carter pulls away from the course and out into the street. A few minutes later, as he is approaching home, he has to swerve to avoid hitting — yet another golf cart. Unfortunately, Carter swerves his golf cart directly into a pedestrian, who is seriously injured.

As the ambulance drives off with the pedestrian, Carter thinks: Does my homeowners insurance cover this? What about my regular auto policy? Will it cover this accident? Could my umbrella policy provide coverage, even if my other policies don't?

The reality is that Carter probably can't rely on his homeowners policy for coverage of this accident. Homeowners policies almost universally exclude liabilities arising from the use of motor vehicles.

As a 2004 California appellate court explained in Quinn v. Cal Farm Ins. Co., golf carts that are licensed and operated on public roads are likely to be subject to an auto or motor vehicle exclusion.

Carter's homeowners policy might have covered this accident if it had happened on the golf course. Many homeowners policies have motor vehicle exclusions that are inapplicable if the injuries result from the use of "a motorized golf cart when used to play golf on a golf course."

But other homeowners policies may more broadly exclude injuries caused by use of any motor vehicle "registered for use on public roads or property." Since LSVs are typically required to be registered in California and other states, the motor vehicle exclusion could still apply, even if the accident occurred on a golf course.

Carter probably cannot rely on his existing auto policy for liability coverage, either. For example, one standard auto policy insures "you" and anyone using "your covered auto." "Your covered auto" would include the vehicles listed on the policy and any vehicles qualifying by definition, which might not include a golf cart or LSV.

And auto policies typically exclude liability arising from use of "any vehicle, other than 'your covered auto,' which is ... owned by you." As a result, Carter's personal auto policy probably would not cover golf cart accidents regardless of whether the cart is classified as an LSV or a basic golf cart.

Keep in mind that states might have their own ways of interpreting coverage. For example, in Florida, Carter's personal auto insurance policy might cover the accident.

In a 2013 case, Angelotta v. Sec. Nat'l Ins., a Florida appellate court found coverage for a golf cart that had been converted to a low-speed vehicle under a statute that required insurers to cover non-owned motor vehicles. But even in Florida, if Carter owns his golf cart, he probably has no liability insurance for golf cart accidents under his personal auto policy.

Carter might be just as disappointed by his personal umbrella policy. Some umbrella policies only cover a motor vehicle accident where damages are covered by underlying insurance. Absent coverage from an underlying auto policy, the umbrella policy's motor vehicle exclusion would apply.

However, other umbrella policies exclude the use of "recreational vehicles" rather than motor vehicles generally. Some umbrella policies define "recreational vehicles" to include golf carts and other "land motor vehicles designed for recreational use off public roads."

Arguably, under that type of umbrella policy, Carter's LSV would not be a "golf cart." Nor would it be "designed for recreational use off public roads." The LSV could be considered its own category of motor vehicle designed for use on public roads due to its increased speed and features intended to facilitate public travel. In other words, it may not be considered a "recreational vehicle" and there could be coverage.

But Carter would be gambling by relying on that umbrella policy for coverage. A court could decide that LSVs are subject to the exclusion, even when they are a bit more exotic and powerful than your standard golf cart.

Concluding thoughts

Unfortunately, with the expanded use of golf carts and LSVs, accidents are inevitable. Because many golf carts and LSVs lack the extensive safety features common to automobiles, injuries on roads and highways can be, and often are, severe.

According to a 2020 study in the Journal of Safety Research, from 2007 to 2017, at least 156,040 people in the U.S. were treated in hospital emergency departments for golf cart-related injuries. Those injured while riding in a golf cart on a street, highway, or other public property were 1.5 times more likely to be diagnosed with traumatic brain injury and were more than 2 times as likely to be hospitalized compared to those injured in golf carts in all other locations.

Depending on the type of golf cart, the kind of activity you plan to engage in, and the state you're located in, you may not need to separately insure your golf cart. But beware: You could face serious personal liability exposure to your passenger, a pedestrian, or another driver — to anyone who is injured in a golf cart-related accident.

For those who own their own golf carts, the best bet is to consult with your insurance broker. When in doubt, separately insure your golf cart with its own policy. A golf cart policy will typically cover liability for bodily injury or property damage to others, and it will cover theft of or damage to your golf cart.

And with any luck, your homeowners policy will still cover the damage your tee shots inflict on nearby vehicles and homes.

Erin Mindoro Ezra is a regular contributing columnist on insurance coverage for Reuters Legal News and Westlaw Today.