Is Boat Insurance Required in South Carolina?

No. South Carolina does not currently require boat insurance by state law. You can register, title, and operate a motorboat or personal watercraft in SC without carrying an insurance policy. But several pending bills in the South Carolina General Assembly would change that, and lenders and marinas already require coverage in many situations.

Quick summary of SC boat insurance requirements:

• State law: No boat insurance mandate as of 2026
• Boat registration: Required for all mechanically propelled watercraft through SCDNR
• Boat titling: Required for all motorized boats and outboard motors 5 HP or greater
• Lender requirement: Banks and credit unions require full coverage on financed boats
• Marina requirement: Many SC marinas require liability insurance for slip holders
• Pending legislation: Bills S. 26, H. 3729, and H. 3846 would mandate liability insurance for certain boats

Current South Carolina Boating Laws

South Carolina has registration, titling, and safety requirements for boat operators, but insurance coverage is not one of them. Here is what SCDNR currently requires under South Carolina law:

Boat Registration and Titling

Every mechanically propelled watercraft operated on SC waters must be registered through the South Carolina Department of Natural Resources. Registration is renewed annually. Boats with motors of 5 HP or more also need a title. The only exceptions are boats documented with the US Coast Guard, which are exempt from state titling.

Boater Education

Anyone born after July 1, 2007 must complete an approved NASBLA boater education course before operating any motorized vessel with 10 HP or more in South Carolina. This applies to jet skis and personal watercraft as well. Several approved course providers offer online and in-person options.

Safety Equipment

All boats must carry the required number of PFDs (personal flotation devices). Everyone on a personal watercraft must wear a PFD at all times. Navigation lights are required for operation between sunset and sunrise. Fire extinguishers, sound-producing devices, and visual distress signals are required based on boat size and type.

Boating Under the Influence

South Carolina’s BUI (Boating Under the Influence) limit is 0.08 BAC, the same as driving. Alcohol is the leading contributing factor in boating fatalities nationwide.

Pending Boat Insurance Legislation in South Carolina

The SC General Assembly has introduced multiple bills during the 2025-2026 session that would require boat insurance. None have passed yet, but the push for mandatory coverage is growing.

Senate Bill 26

This bill would require liability insurance with a minimum of $50,000 in coverage for all boats equipped with motors over 70 HP. Penalties for operating without insurance would range from $50 to $250 for a first offense, up to $500 to $1,000 and possible jail time for repeat violations. Read the full text of S. 26.

House Bill 3729

This bill would require $50,000 minimum liability insurance for all boats 16 feet or longer in length, regardless of horsepower.

House Bill 3846

This bill targets boats anchored in SC waters for 30 or more consecutive days. It would require $100,000 minimum liability coverage. This is aimed at liveaboard vessels and long-term moorings.

If any of these bills pass, boat owners who already carry insurance will be in compliance immediately. Those who do not will need to find coverage quickly, potentially during a surge in demand that could raise premiums.

When Boat Insurance Is Already Required

Even without a state mandate, several situations in South Carolina already require boat insurance:

Financed Boats

If you took a loan or lease to buy your boat, the lender will require you to carry full coverage for the life of the loan. This protects the lender’s collateral. The policy must name the lender as lienholder or loss payee. Most lenders require both liability and physical damage coverage.

Marina Slips and Docking

Many marinas around Greenville and the Upstate require boat owners to show proof of liability insurance before renting a slip. This protects the marina and other boat owners from damage claims. If you dock at Lake Hartwell, Lake Keowee, or Lake Murray, check with your marina about their insurance requirements.

Organized Tournaments and Events

Bass fishing tournaments, sailing regattas, and organized boating events on SC lakes often require participants to show proof of liability insurance. This protects event organizers and other participants.

Commercial Watercraft

Any boat used for business purposes, including fishing charters, boat tours, water taxi services, or equipment transport, needs commercial watercraft insurance.

Does Your Homeowners Policy Cover Your Boat?

Some homeowners insurance policies include limited watercraft liability coverage, but it typically only applies to boats with motors under 25 HP. It does not cover physical damage to the boat itself, and it usually excludes jet skis and personal watercraft entirely. If your boat has a motor over 25 HP or is worth more than a few thousand dollars, a standalone boat insurance policy is the only way to get real protection.

What Boat Insurance Policies Cover in South Carolina

Even though South Carolina boat insurance is not required by law, having insurance coverage protects boat owners from real financial risk. A typical boat insurance policy includes:

• Liability coverage: Pays for bodily injury and property damage you cause to others in a collision or boating accident
• Comprehensive coverage: Protects against theft, fire, vandalism, and weather damage
• Collision coverage: Covers damage from hitting another boat, dock, or submerged object
• Medical payments: Covers injuries to you and passengers on your watercraft
• On-water towing: Pays for commercial tow when your boat breaks down on the lake

These boat insurance policies give you the same type of financial protection that auto insurance provides on the road. The key difference is that South Carolina law requires auto insurance but does not yet require boat insurance.

Why Carry Boat Insurance Even Though It Is Not Required?

South Carolina reported 150 boating accidents and 23 fatalities in 2023. The top causes were inattentive operation and inexperience. Without boat insurance in South Carolina, you are personally liable for every dollar of property damage, collision costs, medical expenses, and legal fees. Carrying comprehensive coverage and liability insurance protects your finances even though the state does not require it yet. Many boat owners also add auto insurance for the trailer and carry liability to cover passengers.

A standard boat insurance policy in South Carolina costs $300 to $500 per year. A single accident claim without insurance can cost tens of thousands. The math is straightforward.

An independent insurance agent in Greenville can compare boat insurance policies from multiple carriers and find coverage that fits your watercraft and your budget. The Morgano Agency works with boat owners across the Upstate who keep their boats on Lake Hartwell, Lake Keowee, Lake Jocassee, Saluda Lake, and Lake Robinson.

Find out how much boat insurance costs in South Carolina, what boat insurance covers, and how to find the cheapest boat insurance in Greenville. Visit our boat insurance service page for a full overview.