Key Points:

• New technology allows people to rent their boats short term, similar to vacation home rentals

• Businesses and state officials said they’re concerned about insurance requirements, safety and taxes

• Legislation proposes to require peer-to-peer boat renters to carry liability insurance

For years, Arizona’s boat rental companies have paid for liability insurance and complied with state regulations they say are essential to keeping people safe on the water. 

But their newest competitors don’t have to. 

As peer-to-peer boat rental platforms turn privately owned boats into short-term rentals, commercial boat rental companies and public safety officials say Arizona’s regulations haven’t kept pace with the new technology, creating concerns about fair competition, insurance and safety on the lakes. 

House Bill 2398 would require liability insurance for people who list their boats on rental platforms, similar to short-term house rentals. Rep. Leo Biasiucci, R-Lake Havasu City, filed the bill after he spoke with the Mohave County Sheriff’s Office and Lake Havasu City about their concerns.

The Arizona Department of Game and Fish said there were, unofficially, 114 collisions in 2025. Between 2020 and this article’s deadline, there have been 911 reported collisions. Waterways with the highest number of incidents are Lake Havasu, Colorado River by Bullhead City and Lake Pleasant. The department’s law enforcement branch reported a total of 117 “operating under the influence” citations in 2025.

On Lake Havasu and the Colorado River specifically, the Mohave County Sheriff’s Office made 14 intoxication arrests and responded to 49 boat crashes in the last year, Sgt. Kyler Cox, the division of boating safety supervisor for the Mohave County Sheriff’s Office, said.

They also respond to many instances of uninsured boat renters.

“During these incidents, damage to involved watercrafts have not been covered due to there being lack of insurance. Many times, the renter assumes there would be insurance to cover the watercraft in event of crashes or damages, but many times there is not,” Cox said via email. 

There’s a vast difference between private rentals and commercial businesses, he added. A rental business like the ones in Lake Havasu City can easily be reached for assistance. But when liability insurance isn’t required and damage occurs to another watercraft or property, the other party is left covering the cost of the damage and renters often leave it with the boat owner. 

Cox said he thinks this will lead to a bigger conversation about boat safety.

“Boating and water sports are a great time, and an amazing way to enjoy our beautiful Arizona weather, but bad things happen very fast on the water,” he said. “Having the proper safety equipment, making sure that children 12 years of age and under are always wearing a US Coast Guard approved life jacket, and knowing the navigation laws on the water can keep you and your family safe.”

Commercial businesses like Wet Monkey Power Sports, a staple in Lake Havasu City for the past 21 years, expressed similar concerns. Patrick Patterson, owner and operator of the rental business, said he has seen the increase in peer-to-peer boat rentals bring havoc on the boat rental industry.

“You go to a gas station, some two or three people doing walk arounds at a gas station showing them the boat, and then they all come into the state park. But they also tell them, ‘Hey, don’t tell them we’re renting a boat because they require you to show insurance, everything.’ But they sneak in and then we catch them down here doing walk-arounds or trying to show the people,” Patterson said.

Patterson’s required to have a $1 million to $2 million commercial insurance policy, register all work vehicles, boats and trailers and train his employees under the state’s system and provide proof of training, among other requirements, he said. 

“When you see someone just pull up and they’ve rented offline and the guy’s over there, ‘Oh yeah, go get on it, take off,’” Patterson said. “I just think as a rental company that they need to show insurance, proof of insurance and proof of registration and just to keep everybody on the level playing field.”

There’s also a chance for scammers to step in, he said. On a holiday weekend, he said he usually sees about three to four people walk into his shop and tell him the person that listed their boat never showed up, but took their money anyway.

But the platforms say they’re just helping people get on the water and have some fun. Get My Boat and Boatsetter merged in January. Doug Bird, vice president of sales and supply at Get My Boat, said they’re still streamlining processes, including insurance. 

Currently, if you sign up to rent out your boat on Boatsetter, you’re asked to provide documentation such as commercial insurance at the minimum requirement for state and federal chartering of a boat, he said. Or, you can use the company’s insurance policy, called Buoy, available from Markel American Insurance Company. Every trip has an insurance policy, he said. 

Boatsetter verifies the vessel and the operator, if a captain will be driving the boat. In that case, the operator is required to have a captain’s license known as a Merchant Marine Credential through the U.S. Coast Guard. Finally, Boatsetter verifies its members with a fraud check, Bird said. 

However, on Get My Boat, the process is slightly different. The requirement is self-attestation and agreeing to terms and conditions. The insurance feature is yet to be integrated with Get My Boat, Bird said. 

He clarified that because Arizona does not require a boating license, people who book a boat are not required to have any type of license or safety training before they set sail. 

Bird did say personally and as a business, he encourages states to require boater safety or licenses so people are familiar with operating a vessel, including basic navigation and safety. The company isn’t shying away from it, he said. 

He said HB 2398 makes sense, especially in today’s world. If the bill passes, the company’s existing insurance coverage meets the minimum requirements comfortably, he added. 

“I think we live in a litigious world and protection and safety is important,” Bird said. “As a business, we champion safety.”

As peer-to-peer boat rentals become more common, local governments are also grappling with additional questions beyond safety and insurance. 

Anthony Kozlowski, the assistant city manager for Lake Havasu City, said more legislation might be needed in order to capture the taxes from boat rentals. 

Currently, if a boat rental is made through Facebook or platforms like Get My Boat, it’s more of a cash related transaction and the city doesn’t collect tax or revenue on it, he said. 

“I firmly believe that there’s going to be a need for more steps to be taken in order to make sure we’re able to collect the necessary taxes associated with these rentals,” Kozlowski said. 

Currently, the bill awaits a final Senate vote. Sen. J.D. Mesnard, R-Chandler, introduced two floor amendments. The first waives the insurance requirement for people who lend their boats to friends or family fewer than four times a year. The second floor amendment clarifies the type of insurers from which a peer-to-peer watercraft sharing program may obtain a primary commercial boat liability insurance policy.