Everyone wants to save a little money when they can, right?

As with any insurance, there are certain safety precautions you can take to pay a lower jewelry insurance cost.

Insurance can be confusing. The insurance industry uses a lot of specific jargon that you likely do not use on a regular basis. (Deductibles, and premiums, and claims! Oh, my!)

Don't let these unknowns steer you in the wrong direction. Let's clear up some of these gray areas - right here, right now. We want you to feel as confident as possible that you're choosing the best insurance plan for you.

Think about all the jewelry you own. Maybe you only have one high-value piece you consider worth insuring, like an engagement ring. The rest might be worth less than $500 apiece. No big deal, right?

We don’t claim to be math experts, but that charm bracelet you’ve been adding to over the years? That baby could be worth a couple grand by the time you complete it.

Jewelry insurance is often forgotten and when it is thought of, it’s often misunderstood. We’re debunking five of the biggest myths around jewelry insurance.

First things first. There should be no difference between a "jewelry appraisal for insurance" and any other type of jewelry appraisal.

All too often, jewelers hear, "I don't want to pay a lot for an appraisal. I only need it to get my jewelry insured."

Shelling out your hard-earned cash for something intangible, that you will hopefully never use, is never fun. However, there is no point in paying for your insurance if it will leave you hanging when you actually need it - all because you didn't want to pay more than the minimum to get an accurate, thorough appraisal.

Picture these scenarios: You purchase a new home. What is one of the first things your realtor recommends? Homeowners insurance. How about a new car? Car insurance.

Other than these two major purchases, what is quite possibly your next most valuable possession? Look no further than your ring finger. Bingo.

In most cases, insuring an engagement ring is much more affordable than you think. Which is great, since protecting your jewelry is one of the best things you can do to safeguard yourself from unnecessary heartache (and financial hardship).

So, how much does it cost to insure an engagement ring?

Finding out your homeowners or renters insurance falls short after you’ve already lost your ring leaves you wondering what to do next. Do you pay for a replacement out of your own pocket? Or go without a ring?

Rock. Hard place.

So how do you know which insurance option won't leave you empty-handed when the unexpected happens? The first step is understanding exactly which situations are covered and for how much.

"How much is my jewelry worth and is it covered for current value?"

You’re not alone if you don’t know the answer. The most important thing is that you find out and keep your jewelry covered for current value before it’s too late. 

Look up the definition of insurance and you'll find words like "reimbursement" and "compensation." That makes sense, since most insurance policies rectify losses by cutting you a check.

In the case of jewelry insurance, a cash payout isn't always your best option.

Read on for a comparison of how jewelry insurance works for a replacement policy versus a traditional reimbursement.