Things I learned buying a ring for my finance: Insurance vs Warranty

When I was in the process of evaluating rings to buy for my finance, I noticed I kept getting pitched the following: 

“Our ring comes with a lifetime warranty.” 

I asked myself, what does this mean? And if a ring has a warranty, do I really need insurance?

This got me digging through websites and a dictionary to figure out the legalese. 

Legal ConceptDefinitionWhy it matters to you
WarrantyA written guarantee of the integrity of a product and of the maker’s responsibility for the repair or replacement of defective parts.If something breaks, who pays for it? Ideally not you. Rings sometimes break: the clasp on the diamond loosens, the jewels get chipped during sports, prongs open up, or something else happens. 
If a ring has a comprehensive warranty, you are covered.
InsuranceAn insurance policy providing coverage in the event of loss, theft or damage to one’s jewelry.If your partner loses the ring (it falls off while swimming), or is stolen you will want to have insurance cover the cost of the ring.
If a ring is uninsured you will have to replace the cost of the ring yourself. 

In general you will want both a warranty and insurance if the ring is greater than 3 months of your wave. This is because the ring is fairly expensive relative to your income and net worth.

In summary, a warranty covers damage and insurance covers accidents and theft. Ring insurance is cheap (usually 1/100th the price of the ring per year) and certainly worth purchasing for peace of mind.

A warranty is something that you should demand from the manufacturer. If they won’t stand by the integrity of their ring over time, your wife shouldn’t either.

They say a diamond is forever, but we all know that shit happens. People fall off horses, get stuck in deep powder while skiing, and remove rings during pregnancy. Rings fall, drop, break, get misplaced, and are sometimes stolen. Forces of God (hurricanes, tornados, fires, and earthquakes) are also added risks. 

Life is easy until it’s not!

Not all rings are forever, which is why having a safety net behind your ring makes so much sense. Insurance is part of the safety net. A warranty is the second layer.

If you are buying a rock for the future, make sure to protect your investment. Outside of your house and car this ring might be your 3rd most expensive asset. And you have car and home insurance, right?

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