The most important factor in determining the cost of watch insurance is the value of your watch.
For instance, the cost of insurance for a $300 watch is significantly lower than the cost of insurance for a $10,000 watch. The cost will also be determined by the provider you select, your coverage limit, and location.
Jewelers Mutual says that its policies typically cost between 1% and 2% of the watch’s value to give you an idea of what you might pay.
This means that insuring a $10,000 watch could cost anywhere from $100 to $200, whereas insuring a $4,500 watch could cost anywhere from $45 to $90 per year.
When the cost of repairing or replacing the watch is greater than the cost of the insurance over several years, it makes sense to purchase watch insurance. Take, for instance, the aforementioned $5,000 watch.
If insurance costs $50 to $100 per year, it would take 50 to 100 years before you paid back the watch’s full value. In contrast, if something were to happen and you didn’t have insurance, you might have to pay the full price tomorrow.
