Premium

If you’re a jewellery lover, you’ll do anything to protect your precious possessions. And what’s the most secure and sensible way to do so? With specialised jewellery insurance.

When researching the many kinds of coverage on offer, understanding insurance premiums can feel overwhelming - but they're just the cost of protecting your valuable collection.

This simple guide will help you understand how premiums work, the factors influencing them, and how to find the best insurance coverage.

What is an Insurance Premium?

Let's start with the basics. When you buy insurance for your precious pieces, your insurance company charges you a fee.

That price is your premium. Think of it as a subscription fee to keep your insurance policy active.

In a nutshell, a premium in insurance is the money you pay to keep your insurance coverage active, safeguarding you from unexpected expenses or losses related to your insured items.

Types of Jewelry Insurance Premiums

When it comes to paying for jewellery insurance, there are two main types of premiums:

• Fixed Premiums: These are simple, regular premiums. You pay the same amount year-round. Dependable and predictable.
  
  
• Variable Premiums: These can change, usually when there's an adjustment in your jewellery's value or other policy changes. Sometimes more, sometimes less.

You often have many payment options to suit your preferences. Pay annually, semi-annually, quarterly, or monthly, depending on what works best for you.

What Factors Affect the Price of Insurance Premiums?

So, what influences the price tag on that premium? Here are the 5 factors you need to know:

• Total Value of Jewellery: It's simple math; the more your jewellery is worth, the higher the premium.
  
  
• Type of Jewellery: Different pieces, stones, and metals may have varying premium costs.
  
  
• Location Matters: Where you keep or wear your jewellery affects the premium. Storing it in a safe? Different cost than wearing it daily.
  
  
• Deductibles: Like an entrance fee for your insurance policy, a deductible is the amount you agree to pay out of your pocket when making a claim.
  
  
• Extra Coverage Options: If you want to add extra coverage that isn’t included in your standard package, this can bump up the premium.

How to Get the Most Value From Your Insurance Premiums

It’s the question everyone wants to know: how do I trim down those premiums while still maintaining the coverage I need? Here are some top tips:

• Secure Your Valuables: Use proper security measures. Safes, alarms, you name it – safer jewellery means lower premiums.
  
  
• Up Your Deductible: A higher deductible means a lower premium. Just make sure you can cover it if something happens.
  
  
• Prove Its Worth: Have your jewellery appraised and document its value. It helps you and your insurer agree on its worth.

Adjusting Your Insurance Premiums Over Time

As life changes, it’s important to make sure your insurance still provides the protection you need.

For instance, if you expand your collection with new pieces, it's likely to raise your premiums, as more value often means a higher premium.

Additionally, the market value of your jewellery plays a crucial role. As your pieces appreciate over time, it can lead to premium adjustments.

So, when your jewellery collection evolves, consider reviewing and updating your insurance policy to ensure you have the right amount of cover in place.

Balance Is Key - Finding the Right Approach To Your Premiums

Locating the sweet spot between the premium and the level of jewellery coverage you need is crucial. 

You never want to be underinsured. But equally, you don't want to overpay your premiums.

Balancing your premium and coverage ensures you protect your precious jewellery without paying for more than necessary. 

Striking this equilibrium guarantees your peace of mind and your wallet are equally secure.

Frequently Asked Questions

Do insurance premiums go up each year? 

Insurance premiums can increase annually, but the extent of the increase depends on various factors, including the insurer, your policy, and your claims history.

Does an insurance premium increase after a claim? 

Filing a claim can sometimes lead to an increase in your insurance premium, as your insurer may view it as a higher risk. However, this isn't always the case, and the impact on your premium varies based on the circumstances and your insurer's policies.

How can I find the best insurance premium for my needs?

Start by assessing your coverage needs, your assets, and potential risks. Conduct thorough research by comparing policies and quotes from various insurers. And remember to read online reviews to gauge customer satisfaction.

Final Words on Jewelry Insurance Premiums

Jewellery insurance premiums are part and parcel of keeping your prized possessions safe. 

Paying attention to the factors that affect premiums, and making informed decisions about your insurance policy, means you can protect your valuables without breaking the bank.

When it comes to safeguarding your precious jewellery, engagement rings, and luxury watches, trust JewelCover, with no impact claims, $0 excess and annual revaluations completed in-house. 

For personalised jewellery insurance and premiums, reach out for a free quote today.