The Cost of Jewelry Insurance: The Risk and Reward

Diamond jewelry is a pricey investment, but replacing it the event it becomes lost, damaged, or stolen doesn't have to be.
cost of jewelry insurance

Jewelry. It’s not cheap. Nor should it be, right? Especially if we’re talking about diamond jewelry.

We spend serious money on jewelry because it’s beautiful. Because it’s dazzling. Because it’s a carefully crafted work of art. But most important, because it represents lofty ideas and emotions like undying love and eternal sacrifice.

So the average American will spend up to $4,000 on an engagement ring, actually a recent drop from the days of $6,000+. Or lay out a minimum of $3,000 for a diamond tennis bracelet. Or often pay north of $7,000 for a diamond pendant. You get the picture. It’s a pretty, pricey picture.

Yes, diamond jewelry is a pricey investment. And we’re all OK with that. It’s just a fact of life. It’s just the price of love, you might say.

The cost of jewelry insurance

If you’re going to spend this kind of money on jewelry, it only makes sense to invest (a much smaller amount) in jewelry insurance. Yes, engagement ring insurance is very much “a thing” — and you’re wise to learn all you can before you buy. So, just how much does the average jewelry insurance policy cost, anyway? And what about the very best jewelry insurance? There’s no “set in stone” answer to these common question, but there is a rather easy and fairly accurate formula. It goes like this:

For every $100 it would cost to replace your ring (i.e. its appraised value), you should anticipate paying between $1 and $2.

In other words, if you decide to purchase engagement ring insurance for a piece with an appraised value of $10,000, you’re likely to pay between $100 and $200 a year for insurance. This amount is known as your premium. A little later, we’ll talk about your deductible — and show you where Zillion can really give you an advantage here.

What about my…warranty?

You might also be wondering “Why should I purchase jewelry insurance if warranty protection comes with the piece?” Another good question. A jewelry warranty, or “guarantee”, typically covers against manufacturers’ defects and “regular wear and tear” on the piece. It may also cover cleaning and other maintenance, or “service” tasks. While some jewelers offer a warranty as part of the purchase price, others may charge an additional fee.

Oftentimes, however, there is a catch. In order to keep your jewelry warranty current and in effect, you have to abide by your jeweler’s specific (and sometimes strict) rules. This often means regular gemstone or diamond inspection,  usually around every six months. If you miss one of these documented inspections, the jeweler can then choose to void your warranty.

While your warranty can certainly provide a huge lifeline if you purchase a defective piece or it wears down over time, it might not be of much use to you if you simply lose it. Even worse, your house or car could be burglarized and your precious jewelry gets stolen. These are just some of the situations and scenarios that standard jewelry warranty plans aren’t likely to cover.

The best jewelry insurance policies will cover the entire value of your jewelry piece — under a pretty wide and deep umbrella of “loss” or “doomsday” scenarios. These scenarios typically include accidental damage, theft, “acts of God” (natural disasters) and could also encompass mysterious disappearance.

You get what you pay for in jewelry insurance — peace of mind.

So in the example used earlier, we’re talking about paying between $100 and $200 a year to purchase engagement ring insurance that’s “valued” at $10,000. Now, $10,000 in its own right is a considerable amount of money for most people. But when you really talk about the “value” of something like an engagement ring…well, can you even really put a monetary value on such an item? 

Now let’s just say you still decide not to purchase jewelry insurance for your treasured ring. Maybe you live in a neighborhood with a sparkling reputation and nary a whisper of a local crime. Or you’re renowned for your ability to never, ever lose or even misplace anything (even something as small as a ring). With so many bills to pay as it already, why should you add yet another expense like jewelry insurance to the household ledger?

In theory, this all makes solid sense. But we don’t live our lives in theory or “on paper” now, do we? Honestly, nobody knows what the next day (or even hour) holds for us — and most events that occur in our lives are beyond our control. So even if your ring is almost certain not to be stolen, and you know you’ll never misplace or lose it…it could still end up badly damaged. You…just never know. Sounds cliché, but hey, it’s true. And as we noted earlier, your jewelry warranty won’t be of much use to you if it’s stolen or destroyed.

When you really analyze it all, jewelry insurance often amounts to paying for security and peace of mind. And if something does go wrong with your treasured ring, the cost of not insuring it could be far more expensive than your insurance premium. This is where Zillion comes in, to offer you peace of mind. 

Zero worries for…zero cost? And how much is a Zillion?

In addition to your premium, there’s another cost associated with your engagement ring insurance — your deductible. Remember, we told you we’d get to this part.

The deductible is the required payment if you ever need to file a claim for lost, stolen or damaged jewelry. To use the same dollar amount example as earlier, let’s say your deductible is $1,000. So if your jewelry goes missing or is damaged, you’d be responsible for up to $1,000 of the repair or replacement cost. After that, any additional costs within the coverage limit would be paid for by your jewelry insurance policy.

Deductible amounts can vary dramatically, and sometimes you get to set or choose that amount. If you opt to insure your jewelry with Zillion and need to file a jewelry inurance claim, you’ll never need to pay a deductible. In addition to our $0 deductible advantage, Zillion also stands out because of its pain-free, concierge claims experience. 

Don’t just take our word for it. Check out some of the many positive Zillion reviews right now!


Zillion partners with jewelers to offer their customers lower rates on jewelry insurance. If you don’t see your jeweler on our list, we’re sorry, we won’t be able to offer you a quote for insurance. If you purchased from a Preferred Jewelers International retailer please email us at and let us know the name of the retailer. Thank you.