I don't really want to continue in a politcal vein, and I don't know what New Jersey requires in the way of insurance, but my state only requires liability insurance--as opposed to collision and comprehensive. I'm not sure I think that is even the business of government, but there is a huge difference between forcing one to be accountable for the damage they do to others as opposed to requiring insurance for damage to ones self.
As far as making people pay for being rescued; I think that would depend on the nature of the activity that triggers the rescue and what resources are consumed in the process. I know that in extreme cases, people are held liable for expenses. I have doubts about how many of those bills get paid.
My prime point is that I don't want government involved in regulating things that don't need to be regulated. I can only see negative results for kayaking and personal liberty for government to involve itself where it is not needed.