Boat Insurance Requirements by State

Before purchasing boat insurance, it's important to understand your state's legal requirements and coverage recommendations. While boat insurance isn't legally required in most U.S. states, some states have specific insurance requirements, and marinas or lenders may also require proof of coverage. 

So, the main question for 2026 is: Is boat insurance mandatory in your state? If yes, what are the specific requirements? And if not, what types of coverage should you consider to protect your investment?  

In this article, you'll learn the boat insurance requirements for every U.S. state, including which states legally require coverage and what protection to consider if insurance isn't mandatory. Whether you're in Michigan, Texas, Arizona, Colorado, or anywhere else, you'll find the information you need to stay compliant and protected in 2026. 

Is Boat Insurance Mandatory?   

Yes, boat insurance is mandatory in 3/50 states in the U.S., which include Arkansas, Hawaii, and Utah. Each of these three states has a varying boat insurance requirement as follows.  

• Arkansas: It is mandatory to carry a minimum of $50,000 in liability boat insurance if your boat has an engine of 50 horsepower or more. Many personal watercraft, such as Jet Skis, Sea-Doos, and WaveRunners, typically exceed this horsepower threshold and are therefore required to carry the minimum liability coverage.    
• Hawaii: According to Hawaii’s Division of Boating and Ocean Recreation, it is mandatory to have a minimum liability insurance coverage of at least $100,000, and wreckage removal coverage of a minimum $500,000 for boats that are above 26 feet in length.   
• Utah: Boats that have a horsepower of 50 and above must have a minimum coverage of $25,000 to $50,000 for bodily injuries/death, and $15,000 for property damage or $65,000 combined limit based on Utah’s Division of Outer Recreation.

If you want to know more about the requirements of boat insurance in these three states, and several other U.S. states, you should explore our detailed guide on do you have to have insurance on a boat. 

Is Boat Insurance Required in All 50 States?   

Boat insurance isn't legally required in most U.S. states. Only Arkansas, Hawaii, and Utah have mandatory boat insurance requirements under specific conditions. The table below provides a state-by-state breakdown showing whether boat insurance is legally required or optional as of August 2026.

Also Read: Is Boat Insurance Required in Michigan?

Boat Insurance Coverages to Consider 

Boat insurance is designed to financially protect you from accidents, liability compensations, legal consequences, and unprecedented events like theft, vandalism, and weather calamities.  

Whether your boat is safely docked at the marina or it’s sailing on the water, there’s always a susceptible risk of accidents leading to a hefty financial loss. So, that’s why it’s crucial to ensure you have the right boat insurance coverage to stay financially secure.   

Here are some of the most common boat insurance coverages to consider when building or renewing your policy. 

Liability Coverage

If you cause a boating accident that damages another vessel, property, or injures other people, this coverage helps pay for repairs, property replacement, and medical expenses to the other boater and their passengers up to your coverage limits. If you get sued in an at-fault boat accident, the liability insurance coverage will cover the legal expenses to deal with court proceedings and compensate any fine imposed by the court. 

Collision Coverage

The collision coverage is specifically designed to financially protect your boat from damages that are incurred by accidental collisions up to your coverage limit, regardless of whoever is at fault. Whether your boat is stationed at the dock or it’s sailing on the water, the collision coverage will cover your boat’s repair and replacement costs if it’s struck by another boat or object. 

Comprehensive Coverage

Comprehensive insurance coverage is extremely necessary to protect your boat from unprecedented events such as theft, vandalism, fire outbreaks, and severe weather conditions. Typically, this coverage has been designed to financially safeguard your boat from unexpected events that are beyond your control. 

Wreckage Removal Coverage

If your boat accidentally sinks, the cost of just retrieving it from the water can be very expensive. On average, it can cost you a few thousand dollars to over $50,000 to recover a small boat. The cost of recovering large boats in deep offshore waters can cost you thousands of dollars.  

Additionally, it is mandatory to remove sunken boats from the water to prevent environmental hazards in states such as California, Florida, Maryland, Mississippi, Oregon, Pennsylvania, Rhode Island, Texas, and Washington. In Florida, you have the option to surrender your boat to the Government if you fail to get it out of the water.  

Wreckage removal coverage helps you cover the expense of raising your boat out of the water and transporting it to a repair facility, making it an essential coverage to safeguard your finances. 

Uninsured Boater Coverage 

Approximately about 30% of boats operate without insurance, increasing the risk of paying out of pocket if you're involved in an accident with an uninsured or underinsured boater.  

Uninsured boater coverage helps pay for your medical expenses, lost wages, and other covered damages up to your policy limits when the at-fault boater doesn't have enough insurance or has no coverage at all. It provides an added layer of financial protection and helps minimize your financial burden after a covered boating accident. 

Fuel Spill Liability Coverage   

An accidental fuel or oil spill from your boat can cause serious environmental damage and result in expensive cleanup costs. Fuel spill liability coverage helps pay for the cost of containing and cleaning up covered fuel or oil spills, as well as certain legal liabilities arising from the incident, up to your policy limits.  

This coverage can provide valuable financial protection, especially if your boat is docked at a marina or operates in environmentally sensitive waterways where cleanup requirements can be costly.  

Towing Coverage  

If your boat breaks down on the water due to a mechanical failure, dead battery, fuel shortage, or another covered issue, towing coverage helps pay the cost of towing your boat to the nearest repair facility or safe harbor.  

According to BoatUS, without towing coverage, a single on-water tow can cost anywhere from $250 to over $1,000, depending on the distance, vessel size, and location. This optional coverage helps reduce unexpected out-of-pocket expenses and provides greater financial protection if you ever need to tow your boat to the nearest repair shop, or the garage.  

Apart from these 7 essential boat insurance coverages, there are other protections worth considering. You can explore them in our detailed guide on What Does Boat Insurance Cover and Not Cover. 

Is Boat Insurance Worth It Even If It’s Not Required?   

Yes, even if boat insurance isn't legally required in your state, it's still worth having. Whether you own or rent a boat, the right insurance coverage can protect you from costly repairs, liability claims, medical expenses, theft, vandalism, and severe weather damage that could otherwise result in significant out-of-pocket costs. 

Boat insurance also provides valuable financial protection if your boat is financed, stored at a marina, or frequently used on lakes, rivers, or coastal waters. In many cases, lenders, marinas, and boat clubs may require proof of insurance before approving financing or allowing you to dock or store your boat. 

Ultimately, boat insurance offers more than just legal compliance. It helps safeguard your finances, protects your boat against covered losses, and allows you to enjoy your time on the water with greater confidence. 

In Which States Does L.A. Insurance Provide Boat Insurance Coverage?  

L.A. Insurance provides boat insurance across several states in the U.S. This includes Arizona, Colorado, Florida, Georgia, Michigan, Nevada, and Texas. If you’re looking for a reliable insurance agency that offers a wide range of affordable boat insurance and watercraft coverage, you should consider exploring our boat insurance policy.  

Whether you own a fishing boat, pontoon boat, speedboat, personal watercraft, or another type of recreational vessel, our experienced insurance agents can help you compare coverage options for adequate financial protection within your budget. 

Apart from boat insurance, we also provide policies such as auto insurance, motorcycle insurance, renter’s insurance, RV and Motorhome insurance, commercial auto insurance, and life insurance. 

If you need to learn more about our policies or to speak with an insurance expert about coverage types and limits, you can fill out our contact form or use our online portal to connect with a nearby agent. 

Frequently Asked Questions (FAQ) 

What kind of insurance do you put on a boat?

Boat insurance typically includes several types of coverage. The most common are liability coverage (for damage or injury you cause to others), collision coverage (for repair or replacement costs if your boat collides with another boat or object), and comprehensive coverage (for non-collision incidents like theft, vandalism, or storm damage). You can also add optional coverages like medical payments, wreckage removal, and personal property protection, depending on your needs. 

Can you get just liability insurance on a boat? 

Yes. If you’re looking for basic protection at a lower cost, you can choose liability-only boat insurance. This covers damage to other people’s property, injuries to other boaters, and legal expenses if you’re found at fault in an accident. However, it won’t cover repairs or replacement for your own boat, so it’s best suited for those willing to take on the risk of paying for their own losses. 

Is boat insurance mandatory in all states?

No. Boat insurance isn't legally required in most U.S. states. As of August 2026, only Arkansas, Hawaii, and Utah have mandatory boat insurance requirements under specific conditions. Even in states where insurance isn't required by law, lenders, marinas, and boat clubs may still require proof of coverage. 

How much does boat insurance cost?

On average boat insurance costs vary widely depending on boat type, size, usage, and coverage levels. On average, policies range from $200 to $500+ annually. 

Can I register a boat without insurance?

Yes, in most U.S. states, you can register a boat without insurance because coverage isn't legally required. However, Arkansas, Hawaii, and Utah have mandatory boat insurance requirements under specific conditions. Even if your state doesn't require insurance for registration, lenders, marinas, or boat clubs may still require proof of coverage before financing, docking, or storing your boat. 

What happens if I don't have boat insurance?

If your state doesn't legally require boat insurance, you generally won't face penalties for going without coverage. However, you'll be responsible for paying repair costs, liability claims, medical expenses, and other losses out of pocket if you're involved in an accident. You may also have difficulty obtaining financing or docking at certain marinas.