Do You Have to Have Boat Insurance?
Most states do not require boaters to purchase watercraft insurance. However, many marinas require insurance if you want to use a slip or mooring. In addition, if you are financing the purchase of a boat, your bank will require insurance. Even if these requirements do not apply to you, it is still a good idea to obtain boat insurance.
Who may require you to carry boat insurance?
If you intend to finance the purchase of a boat, your bank will require proof of watercraft insurance. The policy should typically cover the full value of the boat, and your bank may have minimum requirements for specific types of coverage. Furthermore, you must include the bank as a lienholder on the policy in order for it to be included as a co-payee on any compensation in the event of a loss payment.
To use their facilities, most ports and marinas will require you to have boat insurance.
For example, if you want to moor your boat at the Port of Bellingham in Washington, you must have at least $300,000 in general, legal, and pollution liability coverage with a policy term of no less than one year. Another example is the Hawaii Division of Boats and Ocean Recreation, which requires all vessels moored at its facilities to be covered by at least $500,000 in liability insurance.
Some marinas, like the Hawaii Division of Boats and Ocean Recreation, may even require the marina to be listed as an "additional insured" or "additional interest" on the policy. Before you can sign a contract for a slip or mooring, you must usually provide proof of insurance.
Boat insurance requirements by state
In general, your state will not require you to purchase boat insurance. In fact, only a few states require boaters to buy insurance, and the requirement is frequently restricted to boats with engines rated at least 50 horsepower.
The only states that require boat insurance are Arkansas, Hawaii, and Utah.
The table below lists the insurance requirements for each state.
State | Is boat insurance required? |
Alabama | No |
Alaska | No |
Arizona | No |
Arkansas | Liability insurance with at least $50,000 in coverage is required for all boats powered by engines of more than 50 horsepower. |
California | No |
Colorado | No |
Connecticut | No |
Delaware | No |
District of Columbia | No |
Florida | No |
Georgia | No |
Hawaii | Only for boats parked in Department of Land and Natural Resources Division of Boating and Ocean Recreation (DOBOR) facilities. Liability insurance with at least $500,000 in coverage is required for all boats parked in DOBOR facilities, including harbors and offshore moorings. The insurance policy must name the State of Hawaii, DOBOR as the "additional insured" or "additional interest". The policy should cover salvage costs for grounded or sunken vessels, damage to docks, pollution containment and wreck removals. |
Idaho | No |
Illinois | No |
Indiana | No |
Iowa | No |
Kansas | No |
Kentucky | No |
Louisiana | No |
Maine | No |
Maryland | No |
Massachusetts | No |
Michigan | No |
Minnesota | No |
Mississippi | No |
Missouri | No |
Montana | No |
Nebraska | No |
Nevada | No |
New Hampshire | No |
New Jersey | No |
New Mexico | No |
New York | No |
North Carolina | No |
North Dakota | No |
Ohio | No |
Oklahoma | No |
Oregon | No |
Pennsylvania | No |
Rhode Island | No |
South Carolina | No |
South Dakota | No |
Tennessee | No |
Texas | No |
Utah | Bodily injury/death and property damage insurance are required for all boats powered by engines of 50 horsepower or more. You must have at least $25,000/$50,000 for bodily injury/death coverage and $15,000 for property damage or a $65,000 combined minimum per accident. Proof of insurance must be carried onboard the boat whenever it is in operation. |
Vermont | No |
Virginia | No |
Washington | No |
West Virginia | No |
Wisconsin | No |
Wyoming | No |
Should you get boat insurance?
Boats can be covered under a homeowners policy, but there are usually restrictions on the size and value of boats that can be insured under such a policy. In many cases, the boat's value cannot exceed $1,000 or $2,000. While this coverage is ideal for small, non-motorized boats like canoes and kayaks, it is insufficient for larger or motorized vessels. Furthermore, many homeowner policies will only cover the boat if it is damaged on your property; damage while it is in the water is not covered.
It is generally advised to obtain boat insurance.
Boat insurance is similar to auto and homeowners insurance in many ways. In the event of a total loss, you can choose between actual cash value and replacement cost, just like with a homeowners policy. If someone is injured on your boat, you'll be covered. Similar to auto insurance, you can purchase comprehensive and collision coverage (also known as "hull insurance"), as well as bodily injury and property damage coverage. Furthermore, many boat insurance policies cover salvage costs, fuel spill cleanup, and damage from water sports.
There are add-on coverage options for your boat policy, just like there are for other types of insurance. Among the add-on options are:
- Roadside assistance and on-water towing
- Coverage for fishing equipment or carry-on personal property
- Mechanical breakdown coverage
- Ice and freezing damage coverage
- Hurricane haul-out coverage
- Trailer trip interruption
Signing up for multiple policies through a single insurer, taking a boating safety course, receiving a boater education card or license, limiting your boating to a specific geographic area, or having a good driving record on the road can all result in premium discounts. Some insurers even offer decreasing deductibles for each year you go without filing a claim.
Frequently asked questions
Is boat insurance a good idea?
Boat insurance is an excellent way to protect yourself and your watercraft. If someone is injured on your boat, you will be covered, just like with home insurance, and you can purchase comprehensive and collision coverage for your watercraft, just like with auto insurance.
What is the purpose of boat insurance?
Boat insurance protects you and your boat from risks such as theft, collision, and storm damage. It also protects your boat whether it's on land or in the water.
How much is boat insurance?
Boat insurance typically costs between $200 and $500 per year.