Engagement Ring Insurance Guide

Proposing is perhaps single most nerve-wracking moment in most people’s lives. With the significant financial commitment that comes with a ring, engagement ring insurance is great for peace of mind. To give you the low-down on exactly what to look for in an insurance policy, Monzi has put together a handy guide that will tell you everything you need to know. Let’s go.

Engagement ring insurance close up of hand holding ring

Engagement ring insurance: what is it?

Popping the question is a moment filled with fear, anxiety, excitement and hopefully, euphoria. Aside from buying a house or a new car, buying an engagement ring will be a major financial commitment.

With values ranging well into the thousands of dollars and its sentimental worth even exceeding this, insuring your engagement ring really is a no-brainer. That way you’ll be covered in the event of damage, loss or theft.

So what is engagement ring insurance?

Well, it’s simply an insurance policy that covers your engagement ring. You can apply for different levels of cover depending on the ring’s value and how much you would like to pay. But there is a bit more to it.

Read on and we’ll run you through all the key details to consider when buying a ring and looking for an insurance policy.

Can you get insurance for your engagement ring?

As you might expect, yes. You can get insurance for engagement ring just like almost any other valuable possession you own.

When it comes to insuring your ring, you’ll generally have two options.

First, you can add it to your additional home and contents insurance. This will provide cover for theft, loss or accidental damage. However, this kind of insurance often limits the amount that is covered. For instance, your ring may be worth $5,000 while you’re only covered for $1,000.

On the other hand, you can apply for specialised jewellery insurance. These policies will include a higher level of cover, however, that comes with the trade-off that your premiums will likely cost more. These policies do often come with additional benefits which may include things such as free annual revaluations.

Is engagement ring insurance worth it?

If for nothing else, insuring your engagement ring provides peace of mind. If something goes wrong (e.g. your ring is stolen), insurance means you can potentially recoup the value of the ring, replace it or have it repaired.

Furthermore, an engagement ring will likely be one of the more valuable items that you own. You insure your car and your home, so there’s no reason you shouldn’t insure your engagement ring too.

Ultimately though, it is your decision. Insurance is surprisingly affordable but ensure you do your research to find the best deal.

Travelling with your engagement ring

So, the wedding’s over and you’re headed away on your honeymoon. While it’s supposed to be the happiest time of your life, losing your ring could turn your trip into a disaster.

Luckily, there are insurers who offer travel insurance for engagement ring. Like with any other valuable item, insurers offering travel insurance can potentially provide you with a range of different policies and cover options. So, try to match the amount of cover with the value of the ring.

For example, for a $10,000 ring you’re going to need a policy that offers up to $10,000 worth of cover. Failing to get adequate cover means that in the event that the ring is lost and you must replace it, you will be required to pay the difference between the policy amount and the ring’s value.

With travel insurance for your engagement ring, you can rest assured knowing that in the event of theft, loss or damage you’re covered. It will take a weight off and ensure you can enjoy your honeymoon without having to worry.

Does travel insurance cover my engagement ring?

While your ring may be covered by your travel insurance, it is typically a good idea to insure expensive items separately.

Your travel insurance will cover you in the event that your luggage is stolen or lost. This payout however, covers all the items you lost. In many cases, the value of your ring will exceed the amount of cover you have.

As such, it is a good idea to insure your ring separately when travelling to ensure you have adequate cover.

If your travel insurance policy exceeds the value on your ring then it may not be necessary to take out a separate policy.

What steps do I need to take to get insurance?

So, you’ve decided you need engagement ring insurance Australia, what now?

Well, it’s relatively simple. Just follow these three steps and you’ll have your engagement ring insured in no time.

  1. Get the ring valued: the value of the ring is the best guide for helping to determine the level of cover you need. Obviously, the more valuable the ring, the more cover you will need.
  2. Find the right policy for you: should you include it as part of your existing contents insurance or should you find a specialised jewellery insurance policy? Shop around, do your research and find the best deal for your circumstances.
  3. Apply: once you’ve found the right policy. Apply for the cover you require.

How much does it cost to insure an engagement ring?

Unfortunately, at Monzi, we are unable to say exactly how much it will cost to insure your engagement ring. Put simply, we don’t offer insurance and as such, we cannot provide you with a cost. Instead, you will need to approach an insurer and request an engagement ring insurance quote.

However, as a loose guide, expect to pay approximately $1 to $2 per $100 of the ring’s value. Doing some quick maths, that means that for a ring worth $10,000, your year premiums will be somewhere between $100-$200. So, surprisingly affordable.

This is simply a guide, however. For more detailed information contact an insurance company who offers the product you are looking for.

What factors determine the cost of insurance?

As with most products, the cost of engagement insurance won’t be black and white. In fact, there are a number of factors that will be considered in order to calculate your premium.

  • The type of insurance and level of cover that you select: will it be included in your contents insurance or is it insured under a separate policy? Specialised jewellery policies typically come with higher premiums.
  • The ring’s value: the more valuable the ring is, the higher the premiums will be (typically)
  • Your location: if you live in an area that is high in theft, premiums may be higher

What does engagement ring insurance cover?

The exact list of coverage will be outlined in the fine print of your insurance agreement. Furthermore, the extent of your coverage will be determined by the policy you take out.

However, ring insurance will typically cover some or all of the following:

  • Accidental damage
  • Theft
  • Loss
  • Replacement or repairs (will depend on your policy)

What does insurance not cover?

Again, this will come down to your individual insurance policy. In most cases, the following will not be covered:

  • General wear and tear.
  • Intentional damage or destruction: could be by yourself, your spouse or a family member.
  • Alterations or damage incurred during cleaning or repairs.
  • Any damage that occurred prior to taking out the policy.

Finding the best engagement ring insurance

Trying to find the right insurer for your circumstances? Keep the following things in mind when comparing your options:

  • The premium: your annual payment can vary between lenders. Find the best deal for you.
  • Consider your options: contents insurance vs specialised jewellery cover. Understand the difference and which is right for you.
  • Analyse the fine print: know what you will be covered for. What types of damage or loss are accounted for? For example, are you covered if you lose the ring while overseas?
  • Understand the claims process: what does the insurer require from you when making a claim. May include photographs, valuations, receipts, etc.

Engagement ring buying guide

While engagement ring insurance is important, we’ve put the cart before the horse. In order to take out an engagement insurance policy, you first need an engagement ring.

If you have no idea where to begin, that’s okay. Monzi’s here to help. We’ve put together a simple, little guide that covers the key elements to buying the perfect ring. Read on.

How much should I spend on an engagement ring?

Traditionally, the rule of thumb is to spend approximately two months salary on an engagement ring. For example, if you earn $5,000 then you would spend $10,000 on a ring.

However, doing things simply to follow tradition or social protocol is overrated and often foolish. At the end of the day, you should only spend what you can afford. Putting yourself into excessive debt for an engagement ring is likely not wise.

Ultimately, do what you can to save up and only spend a reasonable amount. Try to purchase a nice ring at the right price. Your partner will be thrilled and you don’t have to compromise your financial situation.

Establishing what you can afford to spend

First things first, you need to establish what you can afford to spend.

When it comes to making any large purchase, you should always start by making a budget. Knowing what you can afford to spend is crucial in order to ensure you don’t live above your means.

So, consider the following:

  • Your income
  • Current expenses: food, rent, bills, any outstanding debts, etc.
  • Your savings: how much do you have in the bank? How much of that are you willing to spend?
  • Potential income: is your income relatively stable and secure? Are you in a job where your income could increase in the near future?

Alternatively, the free Moneysmart budget planner makes it easy. Your income and expenses are categorised giving you an easy-to-understand breakdown of your current financial situation.

Find the best deal

Research, research, research.

When you’re hunting an engagement ring, don’t buy from the first place you visit. Shop around and try to find a great ring for a good deal.

If you’re feeling bold, even look online. Online retailers can potentially save you a ton of money compared to jewellery stores and in many cases, they’ll offer you free shipping and returns. Although, admittedly it’s harder to get a feel for the ring from simply viewing pictures then it is from seeing it in person.

Obviously, if you stumble across the perfect ring early in your search, then shopping around might not be worth it. Although, it never hurts to look.

Get the right size

You’ve all dreamed about being a ninja at some point. Getting the right ring size is all about stealth and sneakiness. The last thing you want to do is spoil the surprise by asking for their ring size directly.

The best way to get the right size is to find a ring your partner owns but is not currently wearing. When you go to the jeweller, take it with you. They can measure it and tell you their ring size. Simple.

If you do somehow end up with the wrong size, don’t panic. Jewellers resize rings all the time. This may incur a fee, however, some lenders will offer it for free as part of the purchase. While you want everything to be perfect, an ill-fitting ring is not the end of the world and is an easy fix.

Know their style – engagement ring insurance

When it comes to buying an engagement ring, the sheer range of choices available can overwhelm anyone. That’s why it’s important to go in with at least some idea of what you want.

The best way to do this is to understand the preferences of your partner. This is where it pays to be observant.

Look at the jewellery they own and more importantly, the jewellery that they wear on a regular basis.

Consider a few of the following factors:

  • What colour does your partner like? Some people prefer silver, others gold. Maybe even rose gold. This is IMPORTANT.
  • Do they prefer big, glitzy jewellery or are they more low-key and understated?
  • Do they wear a lot of jewellery or very little?
  • Are there certain gems they prefer or ones that carry special meaning (e.g. birthstone)?

Nail those four questions and you’ll be on the way to buying the ring your partner has always dreamed of.

The four C’s of diamonds

First of all, buying a diamond ring isn’t mandatory. There are plenty of other precious gems that can make for beautiful engagement rings.

However, if you decide that a diamond ring is the choice for you (no judgment, perfectly reasonable), then make sure you have at least a brief knowledge of the 4 C’s.

Diamonds are graded according to four criteria: caret, cut, clarity and colour. From this, the jeweller can calculate the diamond’s quality and cost.

Here’s a brief overview of which each:

  • Caret: refers to the weight. The heavier the diamond, the higher the cost
  • Cut: the cut determines how the diamond looks. The way the light passes through it can set it apart and make it shimmer and sparkle.
  • Colour: diamonds range from colourless (most valuable) to light yellow. White diamonds are the most popular.
  • Clarity: the fewer the imperfections, the more valuable the diamond.

There’s plenty more information available online. Do your research to determine what diamond is right for you.

How to save money on an engagement ring

As you’re going to find out, engagement rings can be really expensive. With the significant financial commitment you’re going to be making, you don’t want to be paying more than you have to.

Luckily, it is possible to save money. Tips to ensure you get the best possible deal include:

  • Buy outside of peak times: engagements are at their peak around Christmas and Valentines Day and prices are too. Plan to buy your ring outside of these periods when prices may be lower.
  • Don’t get hung up on quality: unless you’re a professional jeweller, factors such as clarity and color won’t mean much to you. Above all, the cut is most important.
  • Get just under a caret: If you buy a fraction under a caret (0.9 vs 1.0) you can save as much as 20%. Best of all, to the naked eye the difference is indistinguishable.
  • Do your research: understanding the 4 C’s gives you the best chance to negotiate the right deal.

Engagement ring insurance: make your life easier

Want to ensure your application process is as simple as can be? There are a few things you can do to ensure the process runs smoothly. See below:

  • Keep the receipt: the purchase price is integral to the value. Knowing how much you paid ensures you can take out a policy that can sufficiently cover the costs.
  • Get the diamond certified: get the value of your diamond certified. Leave no doubt as to its worth.
  • Get a valuation: jewellery can change in value. Regular valuations can ensure you know its worth which is useful when it comes time to make a claim.
  • Keep your insurer in the loop: if the value of your ring changes, your premium may need to be changed. Let your insurer know if anything changes.

What happens if you lose and then find an insured ring?

Obviously, your first step after you lose an item will be to contact your insurer. If the item is lost or stolen, you can claim it and the insurer will pay out a cash amount based on your coverage which you can use to replace the item.

However, what happens if, after receiving a payout, you find the ring?

Firstly, and most importantly, you’ll need to let the insurer know. You then must return the cash or the item, depending on what you did with the payout.

If you don’t inform the insurer after you’ve received a payout, you can be charged with insurance fraud.

Should I borrow money to buy an engagement ring?

At Monzi, we cannot say if borrowing money is the right choice for you. It simply comes down to your financial situation.

Typically, it is wise to avoid relying on credit unless you absolutely must.

If you are seeking a loan, Monzi may be able to help. As a lender-finder service, we match borrowers and lenders. Just submit one simple application and we can potentially match you with an available lender who may be able to offer personal loans of up to $10,000. Check them out:

Loan amountLoan termSecurity required?
$300 to $2,000Up to 12 monthsNo
$2,001 to $4,60013 to 24 monthsYes
$5,000 to $10,00013 to 24 monthsYes

Lenders may vary in their terms. The actual terms of your loan may not reflect the above table.

Get engagement ring insurance today

So, you’ve decided to insure your ring. While we’ve given you some handy tips, it’s important that you do your own research. Investigate a range of insurers and policies and find the one that works for you.

Insure your engagement ring today.

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