Why Engagement Ring Insurance is a Scam

21 Dec

According to Glamour/TheKnot, hubbys-to-be spent an average of $5,392 on engagement rings in 2010.  When you’re dropping that much dough on a single, shiny item, it’s only natural to assume that it should be insured.  During my wedding planning process, I read several articles urging brides to get an engagement ring insurance quote as soon as possible. Heck, The Knot goes so far as to include insuring your ring as a “to do” on their wedding planning checklists.

Per The Knot, you can expect to pay a replacement cost premium between $1 and $2 per every $100 of the ring’s value.  If the ring costs $5,392, you’re looking at a payment somewhere between $53.92 and $107.84/year.  That may seem like a pretty good deal – paying roughly $100/year to replace your $5K engagement ring.  But if you lose your ring (or it suffers some traumatic injury courtesy of the garbage disposal), is a replacement ring going to be satisfactory?

There are certain things that can be easily replaced if damaged (a car).  And there are others for which insurance is a no brainer (your life, your home).  But an engagement ring?

Your engagement ring can never really be replaced.  Sure, you can get another ring, but the sentimental value associated with that significant moment in your life is limited to the original.  This is not as simple trading one Honda CR-V for another (even if it’s a newer model). Once the ring is gone, there is no substitute.

And if you lose your engagement ring, why would you even want a replacement? I guess you could be greedy and use this as an excuse to upgrade if you weren’t totally satisfied with your first one…but it’s not the ring your fiancé/husband got down on one knee to give to you, and it’s never going to be. 

As with most policies, engagement ring insurance is fear mongering at its finest.  And, if you asked my husband to weigh in, he’d say that purchasing an engagement ring policy creates a moral hazard (i.e. that women with insurance aren’t as careful with their rings as those without). My advice is to save your money and just take care of the ring you’ve got.

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