Truth about NEV, LSV and golf cart insurance

Okay, let's face it, no one enjoys paying insurance premiums, and no one wants to pay for something no one else is paying for. So, here we are. People can and do, however, find a way to pay for what they want, but not always for what they need. But, the truth about NEV (Neighborhood Electric Vehicles), LSV (Low Speed Vehicle) or golf cart insurance is this:While your friends, neighbors and relatives will all tell you it's covered under their homeowner's policy, most, if not all, insurance carriers in the State of California have specific language excluding four-wheeled vehicles that are licensed for the road and registered with the DMV. They require a separate auto or specialty auto policy.An auto or specialty auto policy is required for the insurance carrier to annually report your current insurance status to the DMV upon renewal of the policy, eliminating possible fines and suspensions of your driver's license. These policies are only slightly lower then standard auto premiums, partially due to the fact that there is little data collected at this time regarding losses and claims.Some insurance carriers do have a "golf cart" endorsement under their homeowner's policy, but most language states coverage is provided while used on the owner's property, and for direct access to a golf course adjacent to the property - not for driving over to Starbucks on a neighborhood or community roadway.If the vehicle is not licensed for the road or registered with DMV, and only operated on roadways within an approved residential or golf community, (like, over to Starbucks) and/or off-road, the vehicle will need to be written under a "recreational vehicle" type policy. These are less expensive than auto policies since there is no required annual reporting to DMV.Most community homeowner's associations require proof that the vehicle has insurance coverage when initially purchased and upon annual renewal, even if it is not registered with the DMV.Some registered and licensed NEV, LSV and golf carts may be inappropriately "insured."A lot of folks are driving around with the misunderstanding that they are properly covered - at all times. Yes, you signed the application or endorsement. Yes, you paid a nominal premium. Yes, a contract has been entered into. And so, off you go.However, in the event you have a loss or claim in your NEV, LSV or golf cart, coverage will be provided, but it may be paid under the insurance agent's Error and Omissions policy rather than the actual insurance carrier itself. Once the claim is handled, that previously improperly written policy will be rewritten to an appropriate one within that company - or not. It is, therefore, the duty of the insured person to question their own insurance agent as to the specific language and policy details for that carrier. Don't assume you have the right policy type - make sure.We all hail the advent of the NEV and LSV, especially in this "green" environment. They can be much less expensive than a standard auto, are powered by electricity, don't require much space, provide mobility to persons otherwise not able to maneuver a regular vehicle and are just plain fun to drive. Remember, no one minds paying for what they want. Now, let's pay for what we need.- Nancy E. Leighton, owner of Leighton Insurance Agency, has her office at 805 Twelve Bridges Drive, Suite 20 in Lincoln.