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Personal Watercraft Insurance, PWC History

Wednesday, Feb. 10th 2016 7:31 AM

Personal watercraft are a type of recreational boat designed for riding entertainment (figure 1–3). Because PWC are powered by an engine and intended for the transport of person(s) on water, they fall within the Coast Guard category for motorboats. Although the Coast Guard tracks statistics on a recreational vessel type (Class A inboard motorboat) that includes personal watercraft, the Coast Guard has no official definition of personal watercraft.11

The first commercially successful personal watercraft, the Jet Ski, was introduced by Kawasaki in 1974. Models from the late 1970s and early 1980s were designed for a one-person, stand-up operation. During the mid-1980s, the sit-down style became popular, and it now accounts for 97 percent of the units sold. Most PWC sales are controlled by five companies12 that actively market between 30 and 40 different models designed for one, two, or three persons. Current PWC sales run about 200,000 units per 10

The Marine Index Bureau Foundation is a nongovernmental 501(c)(3) nonprofit entity. Its work on the Recreational Boating Accident Register was funded by the Coast Guard and by the insurance industry. 11 The Coast Guard boating accident statistics report for 1996 describes personal watercraft in the glossary: “Craft less than 13 feet in length designed to be operated by a person or persons sitting, standing or kneeling on the craft rather than within the confines of a hull.” (U.S. Department of Transportation, U.S. Coast Guard. 1998. Boating statistics 1996. Washington, DC. 39 p.) The Coast Guard has no regulatory definition of personal watercraft. 12 The major manufacturers of personal watercraft are Kawasaki, Yamaha (WaveRunner), Polaris, Bombardier (year, and the 1998 models range in cost from $4,799 to $9,399.

PWC constituted more than one-third (36 percent) of all new recreational boats sold in 1997 and represent $1.2 billion of annual sales.13 Engine power of the 33 different 1998 models of PWC ranges from 62 to 135 hp, engine displacement ranges from 639 to 1131 cc with two or three cylinders, and the vessels range from 87 to 126 inches in length.14 Most models are designed to accommodate two or three riders, but results of a PWC owner survey15 indicate that 68 percent of PWC riding is done alone. The typical personal watercraft sold in 1997 had a dry weight of about 450 pounds and a fuel capacity of 10 gallons.16

With a single rider, PWC operating weight would be about 700 pounds. The PWC owner survey was commissioned by the Personal Watercraft Industry Association (PWIA)17 in early 1996. Owners from all 50 States who purchased their vessels between 1991 and 1995 were surveyed; a total of 11,500 surveys were mailed and 2,800 persons responded. Survey results indicated that PWC owners (a group not synonymous with PWC operators) average 41 years of age and have an average household income of $95,400.

In addition, 71 percent are married, 40 percent are college graduates, 85 percent are male, 68 percent have owned a powerboat prior to their PWC purchase, and 73 percent of the time the owner is the operator. The PWIA survey reported that the average owner uses the vessel about 7 days per month during the boating season, and on a typical riding day an average of three different people operate the vessel. In a different survey, of the readers of Watercraft

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