There's nothing quite like the rush of skimming across the water on a jet ski, the spray in your face and the engine roaring beneath you. But here's what most PWC owners don't think about until it's too late: that $10,000 WaveRunner sitting in your garage isn't covered by your homeowners insurance when it's out on the water. And if you accidentally crash into another boat or injure a swimmer, you could be personally liable for tens of thousands in damages.
That's where personal watercraft insurance comes in. Whether you call it a jet ski, WaveRunner, or Sea-Doo, PWC insurance protects you from the financial risks that come with owning and operating these high-speed machines. And the good news? It's surprisingly affordable—most policies cost between $100 and $500 per year, depending on your coverage needs.
Do You Actually Need Jet Ski Insurance?
The answer depends on where you live and how you use your PWC. Unlike car insurance, jet ski insurance isn't required by law in every state. Texas and Ohio, for example, don't mandate minimum coverage. But New Jersey does—if you register your watercraft with the state or operate it on state waters, you need at least $15,000 per person and $30,000 per accident for bodily injury liability, plus $5,000 for property damage.
But even if your state doesn't require it, think about this: the U.S. Coast Guard reported that in 2024, personal watercraft were among the vessel types most involved in recreational boating incidents. Operator inattention, inexperience, and improper lookout topped the list of contributing factors. And here's the sobering part—where life jacket usage was known, 87% of fatalities involved people who weren't wearing one. These accidents aren't just tragic; they're expensive. Medical bills, legal fees, and property damage can easily run into six figures.
If you financed your jet ski through a bank or credit union, here's another thing: your lender will almost certainly require you to carry comprehensive and collision coverage until the loan is paid off. They want to make sure their investment is protected, just like with a car loan.
What Does PWC Insurance Actually Cover?
Personal watercraft insurance works a lot like car insurance, with a few specialized twists. Here's what you're typically covered for:
Liability coverage is the foundation. If you're at fault in an accident that injures someone or damages their property—maybe you collide with another boat or crash into a dock—your liability coverage pays for their medical bills, repairs, and legal expenses if they sue you. This is the coverage that protects you from financial catastrophe, and it's typically the cheapest part of your policy. A basic liability-only policy can cost as little as $100 per year.
Collision coverage handles damage to your own PWC when you hit something—another watercraft, a submerged log, a dock, whatever. If your jet ski is new or worth several thousand dollars, collision coverage makes sense. You'll pay a deductible (usually $250 to $1,000), and then insurance covers the rest.
Comprehensive coverage protects you from all the non-collision disasters: theft (jet skis are notoriously easy to steal), vandalism, fire, storms, and weather damage. If a hurricane floods your storage unit or someone steals your WaveRunner right off the trailer, comprehensive coverage has your back.
Medical payments coverage (often called MedPay) is a smart add-on. It covers medical expenses for you and your passengers after an accident, regardless of who was at fault. Most policies offer up to $25,000 in medical payments coverage. If you or a friend breaks a bone or suffers a concussion after hitting a wave the wrong way, MedPay covers the emergency room bills without you having to file a liability claim or wait for a lawsuit to settle.
Some policies also include towing and roadside assistance, which is invaluable if your PWC breaks down miles from shore. Towing a watercraft isn't cheap—it can easily cost $200 or more—so having this coverage can save you a significant hassle and expense.
How Much Does PWC Insurance Cost?
Here's where jet ski insurance really shines: it's affordable. Most PWC owners pay between $200 and $500 per year for full coverage. If you only need liability, you can get a policy for as little as $100 annually.
Your actual rate depends on several factors. The make, model, and horsepower of your watercraft matter—a high-performance racing jet ski with 300 horsepower costs more to insure than a basic recreational model. Where you live and where you ride also affects pricing. If you're in a high-theft area or somewhere with heavy boat traffic and frequent accidents, expect higher premiums.
Your own experience and driving record play a role too. If you're a first-time PWC owner with no boating safety training, you'll pay more than someone who's been riding for years and has completed a Coast Guard-approved safety course. Speaking of which, here's a pro tip: taking a boating safety course can reduce your premiums by up to 40%. That one-day class can save you hundreds of dollars over the life of your policy.
How you store your jet ski also matters. If you keep it locked in a garage or secure storage facility when not in use, you'll qualify for better rates than if you leave it outside on a trailer in your driveway. Bundling your PWC insurance with your auto or homeowners policy can unlock additional discounts, sometimes 10% to 20% off.
Age Restrictions and Rental Considerations
If you're thinking about letting your teenager take the jet ski out, hold on. Age restrictions for PWC operation vary widely by state and by insurance company. Most rental companies require operators to be at least 21 years old, and many insurance policies follow similar guidelines. Some states allow younger operators (often 18 or older, sometimes 16 with parental consent), but insurance companies may charge higher premiums for young or inexperienced riders.
Check with your insurer before letting anyone else operate your PWC. If an unauthorized or underage rider crashes your jet ski, your claim could be denied. Many policies also require that operators have a valid driver's license, and some states require a separate boater education card or certificate.
Thinking about renting out your jet ski to make some extra cash? Standard personal PWC insurance won't cover you for commercial use. If you rent your watercraft to others, you need a specialized rental or commercial policy. These policies are more expensive because the risk is higher—you're not in control of who's operating the machine or how they're using it. Rental coverage typically includes liability protection for third-party injuries and damage, plus physical damage coverage while the PWC is rented out.
If you're renting a jet ski from a company for the day, ask what insurance is included. Most rental companies include basic liability coverage in the rental fee, but it may have low limits. They'll often offer additional collision and damage protection as an optional add-on. If you decline it and damage the jet ski, you could be on the hook for thousands in repairs. Your personal auto insurance or homeowners policy typically won't cover a rented PWC, so review the rental agreement carefully.
How to Get Started with PWC Insurance
Getting a quote for jet ski insurance is straightforward. You'll need some basic information: the year, make, and model of your PWC; its value (what you paid or what it's currently worth); where you plan to operate it; and where you'll store it. If you have a clean boating record and have completed a safety course, mention that—you'll qualify for better rates.
Most major insurers offer PWC coverage, including Progressive, GEICO, Nationwide, and specialty marine insurers. It's worth getting quotes from at least three companies to compare rates and coverage options. Ask specifically about discounts for safety courses, multi-policy bundling, and secure storage.
Before you buy, make sure you understand your deductibles (how much you pay out of pocket before insurance kicks in) and your coverage limits (the maximum the insurer will pay). For liability, aim for at least $100,000 per person and $300,000 per accident if you can afford it—legal and medical costs add up fast. For physical damage coverage, choose a deductible you can comfortably afford to pay if you need to file a claim.
PWC insurance is one of those things you hope you never need but will be incredibly grateful to have if something goes wrong. For a few hundred dollars a year, you protect yourself from potentially devastating financial liability and ensure that your watercraft investment is covered against theft, damage, and accidents. Whether you're a weekend warrior or a serious PWC enthusiast, the right insurance policy gives you peace of mind so you can focus on what matters: enjoying the water.
