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Posted by on Apr 29, 2013 in Ring | 0 comments

My Thoughts on Ring Insurance

The other day, a friend asked about tips regarding ring insurance. Admittedly, I am far from an insurance expert, but I do have an opinion. It’s a personal preference, but I would advise NOT to get ring insurance. Now some of you might be thinking, “That’s crazy. Rings can cost more than cars or medical procedures, and you would never skip buying car or medical insurance.” That’s a fair thought and besides the fact that car insurance is legally required, I believe many arguments can be made for why ring insurance is unnecessary.


Ring Insurance

First of all, some homeowners or renters insurance may already cover rings. Often, there might be a $ limit on how much is covered or you may have to pay extra to increase the $ limit. You may, however, already be paying this extra amount to cover other valuables and if that’s the case, your ring could already be insured. In any case, if you already have homeowners or renters insurance, you should call your insurance agent to find out more.

The main reason to not buy ring insurance, however, is because losing a ring is a non-disastrous event in my opinion. Essentially, you’re capped at what you can lose. With a car accident or a medical emergency, the sky’s the limit on how much you can lose, and that’s why I consider those possible disastrous events. If you don’t have car insurance and you hit someone with your car and something really unfortunate happens, you could be facing a multi-million dollar lawsuit. Similarly, if you don’t have medical insurance but need costly surgery all of a sudden, you’re kind of screwed. With a lost ring, you’re out the original money you paid for the ring, which is a bummer, but you’ll be ok and you may decide to not even buy a replacement ring. On the other hand, you sometimes don’t have a choice to undergo surgery or skip surgery!

I think people sometimes associate insurance with the value of an item but in reality, they should associate insurance with how much they can lose. After all, you don’t buy the add-on warranty for your TV when the pushy cashier at Best Buy tries to convince you to buy it, do you? Treat ring insurance in the same manner and just ask yourself if you want to buy insurance for a few TVs (or a few hundred TVs for you Rich Uncle Pennybags out there)! Ultimately, insurance is a very profitable business so no point in contributing to an insurer’s bottom line if you don’t really need the insurance.


The Main Point

Ultimately, neither buying ring insurance nor not buying ring insurance is the “right” move. The “right” move can only be assessed on a person-by-person basis. I do argue, however, that ring insurance is unnecessary and I would not recommend purchasing it. Keep in mind, I don’t even know how much ring insurance costs. My entire reasoning is based on other factors. In the end, I just hope my thoughts and insight will help you make the best decision for you.



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