South Carolina does not currently require boat insurance for most recreational watercraft. You can register your boat with the South Carolina Department of Natural Resources and launch it on any lake, river, or coastal waterway in the state without proof of insurance. That's the legal starting point.

It's also an incomplete picture of what South Carolina boat owners actually face. There's a 2025 law requiring $100,000 in liability coverage for any vessel anchored in SC waters for more than 30 consecutive days. A bill pending in the 2025-2026 legislative session (S.B. 26) would require liability insurance for boats over 70 horsepower — a threshold that covers most recreational powerboats. And most Myrtle Beach area marinas require proof of liability coverage before allowing you to dock. If your boat is financed, your lender requires hull coverage.

Add the fact that a serious boating accident on the Intracoastal Waterway or the open ocean can generate medical bills and property damage claims well into six figures, and the decision about whether to carry boat insurance becomes less about legal requirements and more about financial exposure.

Is boat insurance required in South Carolina?

As of 2026, South Carolina does not require boat insurance for most recreational watercraft as a general matter. The specific exceptions:

30-day anchor rule: A 2025 bill requires $100,000 in liability coverage for boats anchored in South Carolina state waters for more than 30 consecutive days. If you permanently anchor or liveaboard, this requirement applies.

Pending legislation: S.B. 26 in the 2025-2026 legislative session would require liability insurance of at least $50,000 per occurrence for boats over 70 horsepower. It has not passed as of mid-2026, but it reflects where South Carolina boat insurance regulation is heading. Boats in this category should watch this closely.

Marina requirements: Most Grand Strand marinas, including those along the Intracoastal Waterway in Murrells Inlet, North Myrtle Beach, and Little River, require proof of liability insurance coverage as a condition of a slip or dock lease. Check your marina agreement for the specific limit required.

Lender requirements: If your boat is financed, your lender requires both hull and liability coverage on the vessel, just as a car lender requires collision and comprehensive on a financed vehicle.

Types of boat insurance coverage

Liability coverage pays for bodily injury and property damage you cause to others. If your vessel collides with another boat, injures swimmers, or damages a dock, your liability coverage responds. Standard limits run $100,000 to $500,000. On a busy summer weekend on the Intracoastal Waterway or in Murrells Inlet, $100,000 can be exhausted quickly in a multi-person injury situation.

Hull and property coverage covers damage to your vessel itself. Policies are written either as agreed value or actual cash value. Agreed value pays the full insured amount with no depreciation deduction if the boat is totaled — you and the carrier agree on the value at policy inception and that's what you get. Actual cash value factors in depreciation, which can significantly reduce what you receive after several years of ownership. For boats that hold their value or are relatively new, agreed value is typically the better choice.

Uninsured boater coverage protects you when the operator who caused an accident doesn't have insurance. South Carolina currently has no insurance requirement for most boats, which means a meaningful percentage of boaters on local waters carry nothing. Uninsured boater coverage fills the gap when someone without insurance injures you or damages your vessel.

Medical payments coverage pays for medical costs for you and passengers on your boat after an accident, regardless of fault. Limits typically run $1,000 to $10,000 per person.

On-water towing and emergency assistance covers towing, fuel delivery, and breakdown assistance. On the open Atlantic waters off Myrtle Beach or in the offshore inlets where commercial and recreational traffic mix, breaking down without towing coverage creates a genuinely difficult situation.

How much does boat insurance cost in SC?

Most South Carolina boat owners pay between $300 and $500 per year for a standard policy, according to Morgano Agency's June 2026 analysis. Progressive's 2024 average for South Carolina was $459 per year, with liability-only policies available for as little as $100 per year.

Coastal South Carolina boaters generally pay more than inland lake owners because hurricane exposure affects hull coverage pricing. A boat kept in a Murrells Inlet slip during the Atlantic hurricane season carries different risk than one stored at a freshwater lake marina in the Upstate. Hurricane haul-out provisions in your policy — which may require you to remove the boat from the water when a named storm approaches — affect both your obligations and your coverage during storm season.

Agreed value policies typically cost more than ACV policies for the same hull value because there's no depreciation offset for the insurer. The premium difference is usually worth it for boats under 10 years old.

The boating accident discount explained

Most boat insurance carriers offer completion of an approved boating safety course as a qualifying discount — usually 5% to 10% off the total premium. The U.S. Coast Guard Auxiliary and the U.S. Power Squadrons both offer courses that satisfy most carrier requirements. In South Carolina, the SCDNR also offers boating safety education. Taking a course is a low-cost way to qualify for a discount and improve your on-water decision-making simultaneously.

What happens if you boat without insurance in SC

Without insurance, you're personally liable for every dollar of damage and injury you cause to others in a boating accident. A collision with another vessel on the Intracoastal Waterway that injures passengers and totals both boats can generate claims well exceeding $200,000 — an amount that would go directly against your personal assets with no policy to respond.

The pending legislation (S.B. 26) would add a misdemeanor charge for operating a qualifying vessel without required insurance. Even without the criminal penalty currently in place, the financial exposure from an uninsured boating accident is significant enough to treat insurance as a practical necessity rather than an optional expense.

Get a free SC boat insurance quote

Moore & Associates helps Grand Strand boaters find coverage that fits their vessel, their marina requirements, and their budget. For a free quote on boat insurance in South Carolina, call (843) 839-5076 or contact us online. We serve boaters throughout Myrtle Beach, North Myrtle Beach, Murrells Inlet, Surfside Beach, Conway, Pawleys Island, Litchfield, and Georgetown.