Boat Insurance Requirements by State: The Two State Laws and Every Boater-Ed Rule

Quick Answer: Which States Require Boat Insurance?

Two: Arkansas and Utah. Both require liability insurance for motorboats over 50 horsepower and for every personal watercraft, whatever its horsepower. No other state law we know of requires recreational boat owners to carry insurance, and Boat-Ed, the boater-education provider, also names only these two.

Everywhere else, insurance is required by contracts and facilities: a boat loan, a marina slip agreement, a harbor mooring permit, a rental business. A few of those are written into public rules: Hawaii's state harbors require $500,000 for a mooring permit, Chicago's Park District harbors require $300,000, and several states set what boat rental businesses must carry: $500,000 per person and $1,000,000 per event in Florida, $300,000 in West Virginia, and $500,000 (Arkansas) or $300,000 (North Carolina) for jet-ski rentals.

The other rule every state sets is boater education, and it varies far more than insurance. The table below has both for all 50 states.

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Arkansas: $50,000 for Big Motorboats and Every PWC

It is unlawful for the owner of "a motorboat of more than fifty horsepower (50 hp) or a personal watercraft" to operate it, or let anyone else operate it, without liability insurance providing "at least fifty thousand dollars ($50,000) of liability coverage per occurrence" (Ark. Code § 27-101-207(a)). Vessels owned by the United States, a state or a local government are exempt.

• Proof: a declarations page or similar document, carried on board; an electronic image on a phone counts (§ 27-101-207(b)(1)(B)). Insurers need not issue carry-along proof when the cover is part of a homeowners policy.
• After an accident: failing to show proof creates a rebuttable presumption that the vessel was uninsured.
• Penalties: an owner whose uninsured vessel is in an accident is guilty of a Class A misdemeanor. Fines run $50–$250 for a first violation, $250–$500 for a second, and $500–$1,000 or up to a year in jail, or both, for a third (§ 27-101-207(c)). A judge may dismiss the charge if the coverage was in force at the time of arrest.

Smaller motorboats (50 hp or less), sailboats without such a motor, and paddle craft are outside the requirement.

Utah: Auto-Style Limits for Big Motorboats and Every PWC

"Each resident owner of a motorboat shall maintain owner's or operator's security" (Utah Code § 73-18c-301(1)). For this chapter, a motorboat includes personal watercraft regardless of horsepower and excludes boats of 50 hp or less and airboats (§ 73-18c-102(5)).

• Minimum: $25,000 per person and $50,000 per accident for bodily injury, $15,000 for property damage, or a $65,000 combined single limit (§ 31A-22-1503).
• Other forms of security: a surety bond, a deposit of cash or securities with the state treasurer, or a certificate of self-funded coverage (§ 73-18c-102(9)).
• Non-residents: a separate rule applies, tied to how long the boat has been in Utah during the past year (§ 73-18c-301(2)).

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Boat Insurance and Boater Education, State by State

"Boater education" is the state's operator rule, checked for every state against its statute, its boating agency or the agency's official boating handbook (October 2026). Each state guide gives the details and exemptions.

How to read the education column: most states phase education in by birth date, so an older operator may be exempt in one state and not in the next. Several states changed their rules recently: California, New York and Hawaii now cover every motorized-vessel operator, Massachusetts and Minnesota are phasing in rules from 2026, and Utah adds a yearly course for all motorboat operators from 2027.

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Where Insurance Is Required Without a State Law

Boat loans

Lenders require physical damage (hull) cover with themselves as loss payee, and usually liability too, until the loan is paid. The amounts are set in each loan agreement.

Marinas and harbor moorings

Private marinas set their own requirements in the slip agreement, commonly liability cover with the marina as additional insured. Two public harbor systems publish theirs:

• Hawaii: since 1 January 2014, renewing a mooring permit in a state (DOBOR) harbor requires proof of at least $500,000 of boat liability naming the State as additional insured, with cover for salvage, wreck removal and pollution containment. See our Hawaii boat guide.
• Chicago: the Park District's mooring permit requires a public liability policy of at least $300,000 per occurrence. See our Illinois boat guide.

Rental businesses

Several states write insurance into the rules for rental businesses (liveries). The business carries it, not the renter:

• Florida: at least $500,000 per person and $1,000,000 per event for any livery vessel that is not human-powered; the livery must also insure renters or offer them cover (Fla. Stat. § 327.54).
• Arkansas: a personal watercraft livery must carry at least $500,000 of liability insurance (Ark. Code § 27-101-604).
• North Carolina: a business renting personal watercraft to the public must insure each rented PWC, covering owner and renter, for at least $300,000 per occurrence; not doing so is a Class 2 misdemeanor (N.C.G.S. § 75A-13.3(c1)-(c2)).
• West Virginia: a boat livery or rental facility must carry at least $300,000 of liability insurance (W. Va. Code § 20-7-16(f)).
• Texas: a vessel livery must buy liability insurance from an insurer licensed in Texas; the statute sets no amount (Tex. Parks & Wild. Code § 31.111).
• Utah: each livery vessel with a motor of 50 hp or more must carry the liability insurance Utah's boat-security law requires (Utah Admin. Code R650-221-1(11)).
• Georgia: not a mandate. A livery that carries at least $500,000 per person and $1,000,000 per occurrence is generally not liable as owner for a renter's negligent operation, and must post and attach a notice that its policy does not insure the renter (O.C.G.A. § 51-1-22.1).

See our Florida boat guide. Elsewhere, read the rental agreement to see whose insurance applies.

Commercial use

Carrying paying passengers, chartering or guiding takes a boat outside a recreational policy. That is a commercial marine insurance question, separate from the recreational rules on this page.

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Coverages Boat Owners Commonly Carry

Homeowners policies often give only limited cover for small boats, and many exclude larger engines; check yours before relying on it.

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Penalties

• Arkansas: Class A misdemeanor after an accident while uninsured; fines from $50 to $1,000 and, for a third offense, up to a year in jail (Ark. Code § 27-101-207(c)).
• Utah: owning a covered boat without the required security breaks Title 73, chapter 18c; check the chapter for the current penalty.
• Elsewhere: no penalty for being uninsured, but a lapsed policy can breach a loan, a slip agreement or a mooring permit.

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FAQ

Is boat insurance required by law?

Only in Arkansas and Utah, and only for motorboats over 50 hp and personal watercraft. Arkansas requires $50,000 per occurrence; Utah 25/50/15 or $65,000 combined.

Do I need insurance for a jet ski?

In Arkansas and Utah, yes, for every personal watercraft regardless of horsepower. Elsewhere it is not a state requirement. See our jet ski insurance guide.

Does a small fishing boat need insurance in Arkansas?

Not if its motor is 50 hp or less. The Arkansas requirement applies to motorboats over 50 hp and to personal watercraft.

Do marinas require boat insurance?

Many do, in the slip agreement, and each sets its own limit. Hawaii's state harbors ($500,000) and Chicago's Park District harbors ($300,000) publish theirs.

Which states require boater education for everyone?

California, Connecticut, Hawaii, New Hampshire (over 25 hp), New Jersey, New York, Oregon (over 10 hp) and Virginia (10 hp and up). Massachusetts reaches everyone by 1 April 2028, and Utah adds a yearly course from 2027.

Does homeowners insurance cover my boat?

Often only partly: many homeowners policies limit cover for boats and exclude larger engines. Check the policy before relying on it.

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Key Takeaways

• Two states require boat insurance: Arkansas ($50,000 per occurrence) and Utah (25/50/15 or $65,000), for motorboats over 50 hp and every PWC
• Everywhere else, loans, marinas, harbors and rental rules create the requirement
• Published facility minimums: Hawaii state harbors $500,000; Chicago Park District $300,000; rental businesses in Florida ($500,000 / $1,000,000), West Virginia ($300,000), and for jet skis Arkansas ($500,000) and North Carolina ($300,000)
• Boater education is the rule that varies most: from none (Alaska, Arizona, South Dakota, Wyoming) to every motorized operator (California, New York, Hawaii)

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Sources

• Ark. Code § 27-101-207 — liability insurance required for motorboats over 50 hp and personal watercraft
• Utah Code §§ 73-18c-102, 73-18c-301; § 31A-22-1503 — owner's or operator's security and its limits
• Fla. Stat. § 327.54 — liveries
• Ark. Code § 27-101-604 — personal watercraft liveries
• N.C.G.S. § 75A-13.3(c1)-(c3) — personal watercraft rental insurance
• W. Va. Code § 20-7-16(f) — boat liveries
• Tex. Parks & Wild. Code § 31.111 — vessel liveries
• Utah Admin. Code R650-221-1(11) — boat liveries
• O.C.G.A. § 51-1-22.1 (2024 HB 994) — boat livery liability
• Hawaii DOBOR notice, mandatory insurance for vessels moored in DLNR boating facilities (2013)
• Chicago Park District Code, Chapter 8 (Harbors), mooring permit term 56
• Boater-education rules: the state statutes, boating agencies and official state boating handbooks cited in each state guide

Last verified: 2026-10

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Important Disclaimer

This guide provides general information about insurance requirements based on publicly available sources as of the "Last verified" date above. It is not legal, insurance, or financial advice. Requirements, penalties, and statutes can change; individual circumstances vary. Always confirm current rules with your state's boating agency, and consult a licensed insurance professional for advice specific to your situation.