Boat Insurance in Arizona: What You Should Know

What Are Arizona’s Boat Insurance Laws?

Arizona does not legally require boat insurance to operate on public waterways. However, if your boat is financed, your lender will almost certainly require coverage. In addition, many marinas and storage facilities—especially around Lake Havasu, Lake Mead, and other high-traffic zones—may require liability insurance for access or docking.

What Are Arizona’s Minimum Boat Insurance Requirements?

There are no state-mandated minimums for boat insurance in Arizona. That said, most lenders and marina operators expect at least:

• Liability coverage to help protect against injury or property damage to others
• Hull coverage for physical damage to your vessel

Going uninsured might be legal—but it can leave you financially exposed in the event of an accident, theft, or storm damage.

How Much Is Boat Insurance in Arizona?

Boat insurance premiums in Arizona are generally moderate. Here's a rough estimate based on boat type and usage:

• Small boats (under 26 feet): $150–$350 annually for basic liability coverage
• Larger vessels or high-performance boats: $400–$1,200+ annually

Premiums may increase if you frequently boat on busy lakes or store your vessel in unsecured areas.

How Do I Lower My Boat Insurance in Arizona?

You can reduce your premium through several smart practices:

• Raise your deductible to lower monthly or annual costs
• Complete a state-approved boater safety course—some insurers may offer a discount
• Store your boat securely—preferably in a locked facility or garage
• Avoid high-risk use such as racing, stunt riding, or commercial rental, which are often excluded from standard coverage

Additional Requirements: Are You Financing a Boat?

If your boat is financed, your lender will most likely require extended coverage. This typically includes:

• Agreed value or actual cash value hull insurance (Agreed value pays a fixed amount if totaled; actual cash value subtracts depreciation)
• Comprehensive and collision protection
• Liability insurance

Some lenders may also require additional endorsements, such as coverage for fuel spills, towing, or wreck removal.

How to Get Boat Insurance in Arizona

Purchasing a boat insurance policy in Arizona is easy. You can:

• Call us directly at (1-877-240-4678)
• Get a fast, free online quote through our site

Be ready to provide your boat’s make, model, year, hull ID, and any safety certifications or storage details.

Arizona Boat Registration Information

All motorized watercraft in Arizona must be registered with the Arizona Game and Fish Department. Registration is valid for one year and includes decals that must be displayed on both sides of the vessel.

To register, you'll need proof of ownership (title or bill of sale), a completed application, payment of fees, and a hull identification number (HIN).

How Does Boat Insurance Differ Depending on Where I Live in Arizona?

Your region can influence your insurance rate and policy options:

• Lake Havasu & Colorado River: Higher premiums due to heavy boat traffic, theft risk, and marina storage
• Phoenix Metro Area: Moderate premiums with increased storage-related risk
• Rural Lakes or Seasonal Areas: Lower premiums and more opportunities for lay-up options

Many marinas will require a certificate of insurance to secure a slip or seasonal storage.