Boat insurance requirements vary across the United States, and understanding these regulations is crucial for every boat owner.
While most states do not mandate boat insurance, certain circumstances and locations may necessitate coverage.
Additionally, lenders and marinas may require boat owners to have insurance, even if state law does not.
State-Specific Boat Insurance Requirements
Although most states do not require boat insurance, some have specific mandates that boat owners must follow. Here are the states that require insurance under certain conditions:
Arkansas
Liability insurance is mandatory for motorboats with engines exceeding 50 horsepower and all personal watercraft (PWC).
Minimum coverage required: $50,000 in liability coverage.
Utah
Requires liability insurance for all motorboats and PWCs, except for motorboats with engines under 50 horsepower and airboats.
Minimum required coverage: $25,000 per person for bodily injury, $50,000 per accident for total bodily injury, and $15,000 for property damage.
Hawaii
Requires liability insurance for boats moored in state facilities.
Minimum coverage required: $500,000 in liability insurance.
States With No Mandatory Boat Insurance Requirements
Most states, including Florida, California, Michigan, Texas, and New York, do not require boat insurance.
However, boaters in these states should still consider purchasing insurance for protection against accidents, theft, and liability claims.
Boat Ownership by State
Boat ownership rates vary across the U.S., with some states having a significantly higher number of registered boats.
According to the National Marine Manufacturers Association (NMMA), the top five states for boat registrations in 2022 were:
| State | Number of Registered Boats |
| Florida | 922,597 |
| Minnesota | 834,974 |
| Michigan | 1,000,337 |
| California | 1,051,606 |
| Wisconsin | 650,280 |
Why Boat Insurance Is Important Even If Not Required
Even in states where boat insurance is not legally required, having coverage provides crucial protection:
1. Financial Protection
Boat repairs and replacements can be expensive. Comprehensive boat insurance can help cover accidental damage, theft, and weather-related losses.
2. Liability Coverage
If you are responsible for an accident that causes injuries or property damage, liability insurance can protect you from costly lawsuits and medical expenses.
3. Lender Requirements
If you finance your boat, your lender may require comprehensive insurance to protect their investment.
4. Marina Requirements
Many marinas require boat owners to carry liability insurance before they can dock their boat.
No, only a few states like Arkansas, Utah, and Hawaii have specific boat insurance requirements. However, insurance is recommended for protection.
Yes, even in states without mandatory requirements, boat insurance provides financial protection against accidents, theft, and liability claims.
Many marinas require proof of liability insurance before allowing you to dock your boat. Always check with your marina’s policies.
Homeowner’s insurance may provide limited coverage for small boats with low horsepower. However, for larger vessels, a separate boat insurance policy is advisable.
Factors such as boat age, size, type, value, intended use, and the owner’s boating experience can impact insurance costs.
Conclusion
While boat insurance may not be legally required in most states, it is highly recommended. Whether you are financing your boat, docking at a marina, or simply looking for peace of mind, securing the right coverage ensures that you are financially protected from unexpected events. Always review your state’s regulations and consult with an insurance provider to determine the best coverage for your needs.
Kayla Cavanaugh, founder of SaveYourBoat.com, is an experienced insurance agent with over 10 years in boat and yacht insurance. She is dedicated to educating boat owners on safety and insurance essentials. Through her blog, Kayla provides expert advice to help protect vessels and ensure worry-free adventures on the water.