When Insurance is Required

While the state doesn't mandate it, you may still need a policy for the following reasons:

• Financing: If you have a loan on your boat or PWC (like a Jet Ski or Sea-Doo), your lender will likely require full coverage (comprehensive and collision) to protect their investment.
• Marinas and Docks: Many marinas and private docks require proof of liability insurance before allowing you to dock or store your vessel.
• Public Waterways: Some public lakes or specific organized events in Texas may mandate proof of insurance for operation. 

Coverage Options in Texas

Standard policies for boats and PWCs typically include:

• Liability Coverage: Protects you if you cause bodily injury or property damage to others.
• Hull/Physical Damage: Covers repairs or replacement of your vessel due to accidents, fire, theft, or storms.
• Medical Payments: Pays for medical bills for you or your passengers if injured in an accident.
• Towing & Roadside Assistance: Provides help if your boat breaks down on the water or if your trailer has issues on the road.
• Uninsured/Underinsured Boater: Covers your injuries if you are hit by a boater who does not have adequate insurance. 

Estimated Costs

• PWC (Jet Skis): Basic liability-only policies can start around $100–$150 annually, while full coverage typically ranges from $200–$600 depending on the PWC's performance and value.
• Boats: The average annual cost for boat insurance in Texas was approximately $640 in 2024, though simple liability-only policies can be found for as low as $100/year. A general rule of thumb is that annual premiums cost about 1.5% of the boat's value.
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