My water pump is installed with 14ga wire from the factory, probably about 18 feet as a loop, and I wish it were heavier gauge. Measured at the pump there's quite a voltage drop on that circuit while it's running.
I almost had myself talked into replacing it with 10ga but that'd involve cutting the underbelly.
My thought is, since it's an electric motor, lower voltage does it no favors.
As far as using a chassis ground for the pump, I don't like using one for anything more than a few amps. Don't have any evidence that its a problem, just my preference.