Last verified: May 25, 2026
Arkansas is one of only two states in the country that requires boat liability insurance by law. If you own a qualifying vessel, you need to have a policy in place before you get on the water.
Who Needs Boat Insurance in Arkansas
Arkansas law (§ 27-101-207) requires liability insurance for:
- Motorboats with engines exceeding 50 horsepower
- All personal watercraft (PWC), such as Jet Skis and WaveRunners
If your boat has a 50 hp engine or less and is not a PWC, insurance is not legally required, but it is still a smart move.
Government-owned vessels (federal, state, or local) are exempt.
Minimum Coverage Required
Your policy must provide at least $50,000 of liability coverage per occurrence, issued by an insurance company authorized to do business in Arkansas. This covers injuries or property damage you cause to others while operating your vessel.
You must carry proof of insurance on board at all times. An enforcement officer can request it during any stop or inspection.
Penalties for Not Having Insurance
| Offense | Penalty |
|---|---|
| First violation | Fine of $50 to $250 (mandatory minimum) |
| Second violation | Fine of $250 to $500 (mandatory minimum) |
| Accident without insurance | Class A misdemeanor, up to $1,000 fine and potential jail time |
Being involved in an accident without the required insurance turns the charge into a misdemeanor.
Insurance and Registration Are Linked
When you register a qualifying boat with the Arkansas DFA, you must submit proof of your liability policy as part of the application. No proof means no registration. The same applies at renewal. See our Arkansas boat registration requirements guide for the full process.
Types of Coverage Available
The state only requires liability, but most boat owners benefit from broader coverage. These are the main types:
Liability: Covers bodily injury and property damage you cause to others. This is the legally required minimum.
Collision: Pays to repair or replace your boat after a collision with another vessel, a dock, or an object in the water.
Comprehensive: Covers non-collision damage like theft, vandalism, fire, storms, and flooding. If your boat sits on a trailer or at a marina, this coverage is a good addition.
Uninsured/Underinsured Boater: Covers your costs when the at-fault boater has no insurance or not enough. Many boats on the water fall below the 50 hp threshold and carry no insurance at all, which makes this coverage useful.
Medical Payments: Covers medical costs for you, your passengers, and even tubers or skiers, regardless of who is at fault. Limits typically range from $500 to $10,000.
Towing and On-Water Assistance: Covers the cost of a tow if you break down, run out of fuel, or run aground.
Fishing and Personal Equipment: Covers rods, tackle, electronics, and personal items on board.
What Affects Your Premium
Average annual boat insurance in Arkansas runs around $300, though liability-only policies can start closer to $100 per year. Your rate depends on:
- Boat type, size, and horsepower
- Where you boat and where the vessel is stored
- Your boating and claims history
- Whether the boat is financed (lenders usually require comprehensive and collision)
Ways to Lower Your Cost
- Bundle your boat policy with auto or home insurance
- Complete a boating safety course: many insurers offer a discount
- Pay annually instead of monthly
- Maintain a clean boating record with no claims or violations
Why It Matters
If your boat has more than 50 hp or you ride a PWC, liability insurance is not optional in Arkansas. Getting caught without it means mandatory fines, and an accident without coverage bumps the charge to a misdemeanor. Even if your vessel falls below the 50 hp threshold, a single accident on the water can get expensive fast.
BoatForms helps Arkansas boat owners complete their registration and insurance paperwork accurately before submitting to the DFA.