Is boat insurance required? State law, your lender and your marina
Boat insurance is usually not required by law. There's no federal rule, and only three states require it today, but your lender or marina may require it even when state law doesn't.
What the law says
No nationwide rule exists for recreational boats. As Casey Insurance explains, whether you need coverage depends on the state you boat in, the bank that lent you money, or the marina where you keep the boat.
So two people with identical boats can face completely different obligations. One might need a policy because of a state statute or a boat loan, while the other has no requirement at all.
States with a boat insurance law
Progressive names three states with a legal mandate for boat insurance: Arkansas, Utah, and Hawaii. Illinois becomes the fourth on 1 January 2027.
Arkansas and Utah require liability coverage. Hawaii instead requires coverage for removing and salvaging a grounded vessel.
In Arkansas, Utah and Illinois, jet skis and other personal watercraft need liability insurance no matter how small the engine is.
In Utah, the rule doesn't apply to boats with engines of 50 horsepower or less, or to airboats, but it does apply to every jet ski.
States not on this list have no state mandate, but lenders and marinas may still ask for coverage.
State-by-State coverage rules
Here is which owners must be insured and how much coverage each state with a law expects. Horsepower refers to the engine rating the manufacturer assigns.
| State | Who has to carry it | Lowest coverage allowed |
|---|---|---|
| Arkansas | People who own motorboats above 50 horsepower, plus all personal watercraft | $50,000 in liability for each occurrence |
| Utah | Motorboats above 50 horsepower, plus all personal watercraft | Liability of at least $25,000 per injured person, $50,000 per accident and $15,000 for property damage, or one combined $65,000 limit per accident |
| Hawaii | Owners of vessels 26 feet or longer | At least $100,000 per occurrence, covering removal and salvage of a grounded vessel |
| Illinois (from January 2027) | Motorboats above 50 horsepower, motorboats longer than 21 feet, plus all personal watercraft | Liability insurance; check the Illinois law for its coverage requirements. |
Where these details come from: the Arkansas regulation and its coverage floor, Utah's required amounts and legal definitions, the Hawaii statute, and the Illinois act.
Lender and marina requirements
When you finance or lease, the lender may require protection against damage to the boat itself, which insurers offer as comprehensive and collision coverage. Lenders can require this even while your boat is in storage.
Marinas write their own terms into slip contracts. Here are two examples:
- Cape Fair Marina in North Carolina requires a minimum of $500,000 in liability coverage, going up to $1,000,000 once a boat passes 40 feet.
- Waukegan Harbor in Illinois requires a certificate of insurance proving $500,000 or more in coverage for each occurrence.
Each of these marinas also asks to be named as an additional insured, which means they are added to your policy as a protected party. The certificate of insurance is the paperwork your insurer provides to confirm your coverage is active.
Questions people ask
Is it against the law to go without boat insurance?
Only where a state has passed such a law, and only for the particular boats that law names. In Arkansas, it's against the law to let anyone operate a covered boat without liability insurance, so that includes lending it to a friend.
How much will a policy pay if my boat is damaged?
The Texas Department of Insurance explains that an actual cash value policy pays what your boat is worth today rather than its original purchase price. The example it gives: a boat purchased new in 2010 for $40,000 that is now worth $25,000 would be covered for no more than $25,000.
What if my policy includes medical payments coverage?
If your policy includes medical payments coverage, North Carolina's Department of Insurance says its limit is usually $1,000 per person, though you may be able to raise that limit for an extra premium.
Boat insurance law by state: is boat insurance required in your state?
States whose law requires owners to carry cover
- Arkansas: Owners of motorboats of more than 50 hp and of all personal watercraft (government-owned craft exempt); proof of coverage is required to register with DFA, $50,000 liability per occurrence (single limit, not split); included in $50,000 per-occurrence liability (Ark. Code Ann. 27-101-207 (liability insurance required); 27-101-304 (proof of insurance to register))
- Hawaii: Owners of vessels originally manufactured 26 ft or longer that must be registered in Hawaii or operate in state ocean waters with a USCG documentation number; also owners under 26 ft who have grounded a vessel in the State. Vessels in DOBOR harbors/moorings must also carry liability insurance as a permit condition., $100,000 per occurrence, covering removal and salvage of a grounded vessel (HRS 200-13.5); DOBOR states $300K to $500K liability for boats in state harbors/moorings (HRS 200-13.5 (Vessel insurance), L 2019 c 94 (Act 94, HB 1033); HAR 13-231-65)
- Illinois: From 1 January 2027: owners of a motorboat of more than 50 hp, a motorboat over 21 feet long, or any personal watercraft (625 ILCS 45/5-24, added by P.A. 104-651 / SB 2972)., $25,000 (Illinois Vehicle Code 625 ILCS 5/7-203 minimums, incorporated by reference); $50,000 (625 ILCS 5/7-203); $20,000 (625 ILCS 5/7-203) (625 ILCS 45/5-24 (Mandatory liability insurance), P.A. 104-651, eff. 1-1-27)
- Utah: Resident owners of motorboats (over 50 manufacturer-listed hp) and all personal watercraft regardless of hp, whenever operated on Utah waters; nonresident owners after more than 90 days in Utah in the preceding 365 days (otherwise their home-state requirement). Boats of 50 hp or less and airboats are excluded., $25,000; $50,000; $15,000 (or $65,000 combined single limit per accident) (Utah Code 73-18c-301 (Financial Responsibility of Motorboat Owners and Operators Act); definitions 73-18c-102; minimum limits Utah Code 31A-22-1503)
- Washington: Narrow trigger only: anyone who buys or receives a used vessel over 35 feet long and more than 40 years old must secure marine insurance (12-month term, at least $300,000, covering sinking removal and pollution). There is no general mandate for other recreational boats; private moorage operators must also require proof of marine insurance from non-transient moored vessels (RCW 88.26.030)., none set (single $300,000 coverage amount); $300,000 total coverage (RCW 79.100.170, vessels >35 ft and >40 yrs at transfer); included in $300,000; must cover vessel removal if it sinks and pollution (RCW 79.100.170 (marine insurance on transfer of vessels >35 ft and >40 years); RCW 88.26.030 (moorage insurance))
States with insurance rules for boat rentals
- Florida: Liveries must carry a policy covering renters' liability of at least $500,000 per person and $1 million per event, keep proof on site and give renters carrier name and policy number; since July 1, 2023 a livery may instead offer renters that coverage, and a renter who declines signs a statutory acknowledgment (s. 327.54(7)). Liveries also need a free annual FWC Livery Operator Permit; operating without one is a first-degree misdemeanor. Human-powered-only liveries need no insurance.
- North Carolina: Businesses renting personal watercraft to the public must insure the liability of the business and the renter for each PWC rented, minimum $300,000 per occurrence; failure is a Class 2 misdemeanor (fine up to $1,000).
- West Virginia: Owners/operators of a boat livery or rental facility must carry liability insurance of at least $300,000 and hold a license and surety bond; may not rent a PWC to anyone under 18.
| State | Owners must carry cover | Applies to | Minimum limits | Rental rule | Source |
|---|---|---|---|---|---|
| Alabama | No | No | alison.legislature.state.al.us | ||
| Alaska | No | No | dnr.alaska.gov | ||
| Arizona | No | No | azleg.gov | ||
| Arkansas | Yes | Owners of motorboats of more than 50 hp and of all personal watercraft (government-owned craft exempt); proof of coverage is required to register with DFA | $50,000 liability per occurrence (single limit, not split); included in $50,000 per-occurrence liability | No | law.justia.com |
| California | No | No | dbw.parks.ca.gov | ||
| Colorado | No | No | law.justia.com | ||
| Connecticut | No | No | cga.ct.gov | ||
| Delaware | No | No | delcode.delaware.gov | ||
| District of Columbia | No | No | code.dccouncil.gov | ||
| Florida | No | Yes | leg.state.fl.us | ||
| Georgia | No | No | law.justia.com | ||
| Hawaii | Yes | Owners of vessels originally manufactured 26 ft or longer that must be registered in Hawaii or operate in state ocean waters with a USCG documentation number; also owners under 26 ft who have grounded a vessel in the State. Vessels in DOBOR harbors/moorings must also carry liability insurance as a permit condition. | $100,000 per occurrence, covering removal and salvage of a grounded vessel (HRS 200-13.5); DOBOR states $300K to $500K liability for boats in state harbors/moorings | No | law.justia.com |
| Idaho | No | No | legislature.idaho.gov | ||
| Illinois | From 2027 | From 1 January 2027: owners of a motorboat of more than 50 hp, a motorboat over 21 feet long, or any personal watercraft (625 ILCS 45/5-24, added by P.A. 104-651 / SB 2972). | $25,000 (Illinois Vehicle Code 625 ILCS 5/7-203 minimums, incorporated by reference); $50,000 (625 ILCS 5/7-203); $20,000 (625 ILCS 5/7-203) | No | ilga.gov |
| Indiana | No | No | in.gov | ||
| Iowa | No | No | legis.iowa.gov | ||
| Kansas | No | No | ksrevisor.gov | ||
| Kentucky | No | No | apps.legislature.ky.gov | ||
| Louisiana | No | No | law.justia.com | ||
| Maine | No | No | legislature.maine.gov | ||
| Maryland | No | No | insurance.maryland.gov | ||
| Massachusetts | No | No | mass.gov | ||
| Michigan | No | No | legislature.mi.gov | ||
| Minnesota | No | No | revisor.mn.gov | ||
| Mississippi | No | No | law.justia.com | ||
| Missouri | No | No | revisor.mo.gov | ||
| Montana | No | No | mca.legmt.gov | ||
| Nebraska | No | No | nebraskalegislature.gov | ||
| Nevada | No | No | law.justia.com | ||
| New Hampshire | No | No | gc.nh.gov | ||
| New Jersey | No | No | law.justia.com | ||
| New Mexico | No | No | srca.nm.gov | ||
| New York | No | No | nysenate.gov | ||
| North Carolina | No | Yes | ncleg.gov | ||
| North Dakota | No | No | ndlegis.gov | ||
| Ohio | No | No | codes.ohio.gov | ||
| Oklahoma | No | No | govt.westlaw.com | ||
| Oregon | No | No | oregon.public.law | ||
| Pennsylvania | No | No | law.cornell.edu | ||
| Rhode Island | No | No | webserver.rilegislature.gov | ||
| South Carolina | No | No | scstatehouse.gov | ||
| South Dakota | No | No | sdlegislature.gov | ||
| Tennessee | No | No | law.justia.com | ||
| Texas | No | No | statutes.capitol.texas.gov | ||
| Utah | Yes | Resident owners of motorboats (over 50 manufacturer-listed hp) and all personal watercraft regardless of hp, whenever operated on Utah waters; nonresident owners after more than 90 days in Utah in the preceding 365 days (otherwise their home-state requirement). Boats of 50 hp or less and airboats are excluded. | $25,000; $50,000; $15,000 (or $65,000 combined single limit per accident) | No | le.utah.gov |
| Vermont | No | No | legislature.vermont.gov | ||
| Virginia | No | No | law.lis.virginia.gov | ||
| Washington | Yes | Narrow trigger only: anyone who buys or receives a used vessel over 35 feet long and more than 40 years old must secure marine insurance (12-month term, at least $300,000, covering sinking removal and pollution). There is no general mandate for other recreational boats; private moorage operators must also require proof of marine insurance from non-transient moored vessels (RCW 88.26.030). | none set (single $300,000 coverage amount); $300,000 total coverage (RCW 79.100.170, vessels >35 ft and >40 yrs at transfer); included in $300,000; must cover vessel removal if it sinks and pollution | No | app.leg.wa.gov |
| West Virginia | No | Yes | code.wvlegislature.gov | ||
| Wisconsin | No | No | docs.legis.wisconsin.gov | ||
| Wyoming | No | No | wyoleg.gov |
Download the state law table (CSV). Our summaries are free to reuse with a link to this table; the statutes themselves are public law.
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