Customers should be aware of vehicles not covered by auto insurance

Published: October 31, 2018

Updated: November 1, 2018

Author: Luke Jones



Home insurance customers may be losing money if they own a golf cart or other recreational vehicle as their auto insurance will not cover it. One insurance lawyer warns that such vehicles are not covered by either home insurance or standard auto insurance coverage.

“Someone might be driving a golf cart that they own privately, in a gated community, and they might not have any coverage for that unless they specifically bought insurance for the golf cart,” Chet Wydrzynski, associate with insurance defence law firm Dolden Wallace Folick, told Canadian Underwriter.

Wydrxynski says there is no legal obligation to have insurance for vehicles that are user on your own property. However, not having separate coverage will mean the customer foots the bill for any accidents.

For brokers and insurers, “the solution is to ask proper questions on the application and offer the coverage,” Wydrzynski said.

In Ontario, customers are required to have liability insurance for off-road vehicles. However, some vehicles like golf-carts are not deemed off-road and are not included in the Off-Road Vehicles Act.

 “It seems like there is a new type of vehicle every two weeks. The legislation just isn’t really keeping up with all the new vehicles that are coming out constantly. This is not limited to Ontario by any stretch of the imagination.”