I was buying insurance for my $10,000 engagement ring.
Option A: $1,000 Deductible = $100/year.
Option B: $0 Deductible = $130/year.
I chose Option A to save $30.
A year later, a side stone fell out. Repair cost: $400. Because my deductible was $1,000, insurance paid nothing. I saved $30 to lose $400.
Key Takeaways
- Jewelry Claims are Often Small: While theft is a total loss, the most common claims are lost stones, bent prongs, or chipped gems. These repairs cost
200−200−800. - High Deductibles Kill Coverage: A $1,000 deductible effectively voids your insurance for 90% of the things that go wrong with jewelry.
- The Premium Spread is Low: Unlike car insurance, where a low deductible costs hundreds more, on jewelry, the difference is often the price of a pizza.
- Psychological Benefit: With $0 deductible, you don’t hesitate to fix a loose prong. This prevents the total loss of the stone later.
The “Why” (The Trap)
The trap is “False Economy.”
People are trained by Auto Insurance to pick high deductibles (1000).
But Auto claims are usually $5,000+.
Jewelry repair claims are small.
If you pick a deductible higher than the cost of a typical repair (re-tipping, stone replacement), you are self-insuring everything except total theft.
The Investigation (My Analysis of the Math)
I ran quotes for a $10,000 ring in Chicago.
Jewelers Mutual
- $1,000 Ded: $120/year.
- $500 Ded: $135/year.
- $0 Ded: $160/year.
- Analysis: For
40extraayear,Igetcoverageforeverysmallrepair.IfIloseonemeleediamond(40extraayear,Igetcoverageforeverysmallrepair.IfIloseonemeleediamond(300 repair) in 7 years, the $0 deductible pays for itself.
Lavalier
- The Verdict: Similar spread. They encourage lower deductibles because they want you to fix minor damage before it becomes major damage.
[IMAGE: Infographic chart comparing “Out of Pocket Repair Cost” vs “Premium Savings” over 5 years]
Comparison Table
| Deductible | Annual Premium | You Pay (Repair $400) | Insurer Pays |
| $0 | $160 | $0 | $400 |
| $500 | $135 | $400 | $0 |
| $1,000 | $120 | $400 | $0 |
Step-by-Step Action Plan
- Check Your Deductible: Log in. Is it $1,000? Change it.
- Quote $0: Call and ask: “What is the premium difference for zero deductible?” It will surprise you.
- Use the Policy: With $0 deductible, if you scratch the gold, get it polished. If a prong snags, get it fixed. Keep the ring in perfect condition on their dime.
- Don’t Fear Rate Hikes (on Standalone): Specialized insurers (JM) are less likely to hike rates for small repair claims than homeowners policies are.
FAQ
Does a $0 deductible encourage claims?
Yes, that’s the point. It keeps the jewelry maintained.
Can I have different deductibles for different items?
Usually, the deductible applies per policy or per item. Check with the agent.
Is there a minimum claim?
Technically no, but filing for a $20 repair is a waste of paperwork.