Are there any exemptions to the Texas yacht insurance law?

No, Texas requires liability insurance for all yachts with motors over 10 horsepower, regardless of age or size.

What happens if I don’t have the required insurance?

You could face fines, penalties, or legal action if involved in an accident without meeting Texas’ minimum coverage.

Should I get more coverage than the minimum required?

Yes, consider adding collision, medical payments, or uninsured boater coverage for better protection beyond state requirements.

Yacht Insurance Requirements in Texas: What You Need to Know?

Yacht Insurance Requirements in Texas: What You Need to Know

If you own a yacht in Texas, you probably wonder what insurance you need. Here’s the simple truth: Texas law requires certain coverage, but your boat’s needs might call for more. Let’s break it down.

1. Texas Law Mandates Minimum Liability Coverage

If your yacht has a motor with more than 10 horsepower, Texas law says you must carry liability insurance. This covers injuries or damage you cause to others. The minimum required is $10,000 per person for bodily injury, $30,000 per accident for bodily injury, and $5,000 for property damage. These are the legal basics, but more coverage might be wise if your boat is valuable or used in high-risk areas like Galveston Bay.

2. Other Coverage Types Are Optional but Helpful

Liability isn’t the only option. Consider adding:

Physical damage coverage: Repairs if your boat collides or is stolen.
Medical payments coverage: Pays medical bills for you and your passengers after an accident.
Uninsured boater coverage: Helps if you’re hit by someone without insurance.

These extras cost more but can save you money if the worst happens.

3. Some Boats Don’t Need Insurance

Not all yachts require insurance. If your boat:

Is used only on private lakes with no public access,
Is registered as a historical vessel, or
Is kept in another state with different rules (but operated in Texas),

you might be exempt. Still, check with the Texas Parks and Wildlife Department (TPWD) to be sure.

What to Look For in a Policy

When shopping for insurance, ask yourself:

Does the policy meet Texas’s minimum liability limits?
Does it cover the waters you frequent (coastal, inland, etc.)?
Are there deductibles or exclusions that could leave you out of pocket?

Also, compare quotes from multiple insurers. Rates vary based on your boat’s size, use, and your claims history.

Take action today: If you haven’t already, get proof of insurance when registering your boat with TPWD. Review your policy yearly—or after a major life change, like buying a new yacht. A little preparation keeps you and your boat protected on Texas waters.