[ColdNoMore]

Originally Posted by Sandtrap328

Hey, I would say that I just bought a golf cart for $1. Could you take me to court for not going along with an insurance scam?

If you sold the cart, regardless for how long, it is no longer legally yours and it now has a new owner...so I can't see where any 'insurance scam' comes into play.

I'm not saying it is a workable (or even legal) solution...just throwing some 'out-of-thebox' thinking for consideration.

[Sandtrap328]

Originally Posted by ColdNoMore

If you sold the cart, regardless for how long, it is no longer legally yours and it now has a new owner...so I can't see where any 'insurance scam' comes into play.

I'm not saying it is a workable (or even legal) solution...just throwing some 'out-of-thebox' thinking for consideration.

What I meant was what would prevent me from keeping the cart that I paid you $1 - and not selling it back to you for $1?

[Villageswimmer]

Originally Posted by Sandtrap328

What I meant was what would prevent me from keeping the cart that I paid you $1 - and not selling it back to you for $1?

There's that. But in the event of a lawsuit, the cart itself could be the least of your problems. I would run from any insurance company or lawyer that would suggest such a scheme.

[ColdNoMore]

Originally Posted by Sandtrap328

What I meant was what would prevent me from keeping the cart that I paid you $1 - and not selling it back to you for $1?

Put a date on when the cart must be sold back in the legal document.

Or even structure it as a lease, with the lease dates and the inclusion of when the lease expires...and it reverts back to the original owner.

I can't imagine that with all of the auto's under leases, that there isn't ironclad verbiage to ensure that the lessee doesn't get to keep the car.

Like I said though...it's just a thought.

[karostay]

Originally Posted by Daddymac

I just called Progressive insurance. I got a policy on the golf cart, for the renters in my home. I also have been looking around, and foremost was the only policy I could get. But they did not insure the renters. It's now insured with progressive. Good luck folks

I was in the Progressive office last week near Best Buy and purchased coverage for my 2 cars
I ask about renter golf cart coverage and was told
No Progressive doesn't cover renters
Better make sure

[bimmertl]

Originally Posted by ColdNoMore

If you sold the cart, regardless for how long, it is no longer legally yours and it now has a new owner...so I can't see where any 'insurance scam' comes into play.

I'm not saying it is a workable (or even legal) solution...just throwing some 'out-of-thebox' thinking for consideration.

In order to buy an insurance policy, you must have an insurable interest in the car, cart or whatever. How would you explain to your insurance company that the policy you have, actually insures a cart owned by somebody else? "My friend just got in a wreck in his golf cart and it's insured by me"? That won't work.

[Fraugoofy]

Originally Posted by l2ridehd

The primary purpose of the LLC is golf cart rental. You have in place a rental agreement for your property and a separate rental agreement with the LLC for the golf cart. You get basic insurance for the LLC doing business renting golf carts. You designate a portion of the monthly rental as being for the golf cart.

I have seen Progressive mentioned and I did check with them. And yes they will insure a golf cart for tenants. However when I checked the fine print is was for use on a golf course and getting to and from golf course, not as they are used here.

I have 4 golf carts. Two for rental properties and two for us. All 4 are owned by the LLC. I even have a rental agreement in place for our use of our personal carts. And if sued I could lose all 4 carts as that is the assets of the LLC. Is there still some risk? Yes I am sure lawyers would argue some esoteric BS about trying to get around an insurance issue. I am not trying to hide assets, not setting up insurance fraud, just trying to use the legal entity of an LLC to protect a business. The lawyers I hired to set this up believe this will work. However any lawyer can sue anybody for anything. Doesn't mean they will win, but they can do it.

There is no perfect answer just ways to protect yourself as best as you can. And for me the LLC seems the best way. An expensive way, but the best way.

I agree with your logic. We followed your lead and did the same thing last year. I sleep better at night!

Sent from my SM-N910R4 using Tapatalk

[ColdNoMore]

Originally Posted by bimmertl

In order to buy an insurance policy, you must have an insurable interest in the car, cart or whatever. How would you explain to your insurance company that the policy you have, actually insures a cart owned by somebody else? "My friend just got in a wreck in his golf cart and it's insured by me"? That won't work.

I assumed (bad idea I know), that it obviously would be incumbent on the person leasing to provide the insurance (and proof of such)...before the lease was valid. Not that you would be carrying the insurance on it.

Having never leased a vehicle myself, I once again 'assumed' that the lessee has to show proof of insurance to the dealership...before they could take possession. The landlord might even be able to discuss this with their own insurance company and have the documents and premium price ahead of time.

And yes, I realize that this may be convoluted, a pain in the arse... and I'm not even sure if it is feasible.

I simply suggested a method by which maybe a landlord could let their renters use their cart (now technically the renters cart)...while still being legally protected.

So call me crazy, but I hardly think it would hurt...to at least look into it.

If it's possible, it would sure beat being hung out legally...and all the financial grief that would cause.

[RickeyD]

Originally Posted by ColdNoMore

If you sold the cart, regardless for how long, it is no longer legally yours and it now has a new owner...so I can't see where any 'insurance scam' comes into play.

I'm not saying it is a workable (or even legal) solution...just throwing some 'out-of-thebox' thinking for consideration.

Judges aren't stupid. This "technique" will rule against you.

[bimmertl]

Originally Posted by ColdNoMore

I assumed (bad idea I know), that it obviously would be incumbent on the person leasing to provide the insurance (and proof of such)...before the lease was valid. Not that you would be carrying the insurance on it.

Having never leased a vehicle myself, I once again 'assumed' that the lessee has to show proof of insurance to the dealership...before they could take possession. The landlord might even be able to discuss this with their own insurance company and have the documents and premium price ahead of time.

And yes, I realize that this may be convoluted, a pain in the arse... and I'm not even sure if it is feasible.

I simply suggested a method by which maybe a landlord could let their renters use their cart (now technically the renters cart)...while still being legally protected.

So call me crazy, but I hardly think it would hurt...to at least look into it.

If it's possible, it would sure beat being hung out legally...and all the financial grief that would cause.

IF the renter "leases" the vehicle, you are still the owner. Leasing doesn't transfer ownership. So you haven't accomplished anything. Policy stays in your name and there isn't coverage no matter what you discuss with the agent. You own the cart.

Some months ago the Villages Insurance wrote a definitive article on golf cart insurance for rentals stating nobody insures the cart on a rental. They stated they were in the process of working with an insurer or insurers to try and get a policy which would provide coverage for such use and is most likely what the OP of this thread was referring to.

This issue has been beaten to death and nothing has changed. Coverage doesn't exist for carts rented to others or subject to a rental agreement of any type.

[Villageswimmer]

Originally Posted by bimmertl

IF the renter "leases" the vehicle, you are still the owner. Leasing doesn't transfer ownership. So you haven't accomplished anything. Policy stays in your name and there isn't coverage no matter what you discuss with the agent. You own the cart.

Some months ago the Villages Insurance wrote a definitive article on golf cart insurance for rentals stating nobody insures the cart on a rental. They stated they were in the process of working with an insurer or insurers to try and get a policy which would provide coverage for such use and is most likely what the OP of this thread was referring to.

This issue has been beaten to death and nothing has changed. Coverage doesn't exist for carts rented to others or subject to a rental agreement of any type.

Your final paragraph says it all.

[Daddymac]

My policy with progressive has the name of the renters also on the policy.

[EdFNJ]

As a renter (not the landlord) I wonder if my personal AUTO policy or homeowners policy would cover me when "renting" someones home (and golf car) as it does when I do a car rental from an agency. Hmmm, gotta call my insurance company before I leave.