Boat Insurance in California: What You Should Know

What Are California’s Boat Insurance Laws?

California does not legally require boat insurance to operate a watercraft on public waterways. However, if your boat is financed, your lender will almost certainly require coverage. Additionally, many marinas, harbors, and storage facilities will require proof of liability insurance before granting access or slip rental.

What Are California’s Minimum Boat Insurance Requirements?

There are no state-mandated minimums for boat insurance in California. However, marina and lender requirements often include:

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

While these aren't required by the state, skipping coverage can expose you to out-of-pocket costs in the event of an accident or loss.

How Much Is Boat Insurance in California?

Boat insurance premiums in California vary depending on the type of boat, where it's used, and how it's stored. Here are average ranges:

• Small boats (under 26 feet): $200–$400 annually for basic coverage
• Larger vessels or yachts: $500–$1,500+ annually, depending on value and usage

Expect higher premiums in coastal regions like San Diego or the Bay Area, especially if you store your vessel in a marina or use it year-round.

How Do I Lower My Boat Insurance in California?

There are several ways to reduce your premium:

• Increase your deductible to lower monthly or annual costs
• Complete a California-approved boating safety course for a potential discount
• Store your boat securely—in a dry dock, gated facility, or private garage
• Limit high-risk usage such as ocean racing or chartering, which are often not included within coverage
• Bundle policies (home, auto, boat) with the same provider for multi-line discounts

Additional Requirements: Are You Financing a Boat?

If your boat is financed, your lender will most likely require extended coverage to protect their investment. This usually includes:

• **Agreed value or actual cash value hull insurance (**Agreed value policies cover a set amount if the boat is totaled, while actual cash value policies account for depreciation.)
• Comprehensive and collision protection
• Liability insurance

Some lenders may also require additional coverage like towing, wreck removal, or fuel spill liability.

How to Get Boat Insurance in California

Purchasing a boat insurance policy in California is simple. 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.

California Boat Registration Information

All motorized vessels and sailboats over 8 feet in length must be registered with the California DMV. Registration is valid for two years. You’ll receive registration decals and a certificate that must be carried while on the water.

To register, you’ll need proof of ownership, a completed application, payment of fees, and a hull identification number (HIN).

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

Location heavily influences premium and policy needs:

• Coastal Areas (e.g., San Diego, Long Beach): Higher premiums due to saltwater use, storm exposure, and theft risk
• Inland Lakes (e.g., Lake Tahoe, Shasta Lake): Moderate rates with seasonal lay-up options
• Urban Centers: Higher liability requirements at marinas and potential for vandalism or damage in storage

Many marinas require you to provide a certificate of insurance annually to maintain slip access.

Make sure your policy aligns with how and where you use your boat.

This guide is for informational purposes only and does not constitute legal or insurance advice.