How Much Does it Cost to Insure an Engagement Ring?
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?
The Quick Answer
Rates usually depend on where you live. But for most people, insuring your jewelry will cost 1-2% of its value.
For example, a $5,000 ring may cost as little as $50 per year to protect.
The Detailed Answer
Simple Rate Calculation
At Jewelers Mutual, our insurance rate calculation is simple. Our coverage costs 1-2% of the retail replacement value of the jewelry item.
Whether it's 1%, 2% or somewhere in between is based on our historical losses for the residential location of the jewelry wearer.
The other factor that can affect your premium is the deductible option you choose. (Remember, a deductible is the amount of money you have to pay out-of-pocket when you file a claim.)
The higher your deductible, the lower your total annual premium will be. Need help deciding which deductible is best for you? We've got a blog for that.
Often, we get asked, "At what value should I start to insure jewelry?"
One factor to consider is the minimum annual policy premium, which is $25 or $30 depending on your state. ($50 in Canada.)
If the rate calculation for the entire policy premium is less than the minimum, your premium will be the minimum for the residential state of the jewelry wearer.
We also offer four different discounts to our policyholders:
- Security System Discount
- Vault Discount
- Gemprint® Discount
- Valued Policyholder Discount
Feel free to hit us with any questions you may have in the comments below.