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Watch Insurance Premiums are on the Rise
If you own a watch, or a watch collection, you’ll notice premiums have been on the rise in the UK, right? (To discern current rates, we have written an online guide to help). What has brought about the increase in premiums?
Let us break it down for you:
- Fancy watches are in demand: The popularity of high-end and luxury watches has soared in recent years. People are rocking flashy timepieces, which means the overall value of watches being insured has gone up. When there’s more value at stake, insurers tend to charge higher premiums to cover potential losses.
- Rising costs of repairs and replacements: Fixing or replacing a pricey watch can be a wallet-draining experience. Insurance companies take this into account when determining premiums. If the cost of repairing or replacing watches has increased, insurers need to charge more to cover those expenses.
- Risk of theft and loss: Unfortunately, thefts and losses of watches have become more common. These incidents can be costly for insurance companies, so they adjust their premiums accordingly. If there’s a higher risk of watches being stolen or lost, the premiums will reflect that increased risk. LBC report that more than £30mil worth of luxury watches are stolen every year in London alone. Thinking about buying a safe to help, find out which safe to purchase.
- Expensive claims history: Insurers keep track of the claims they pay out, and if they’ve been shelling out big bucks for watch-related claims, they’ll likely raise the premiums for everyone. If there’s been an increase in claims or the value of claims, the insurers need to make up for it by charging more across the board.
Remember, these are just a few informal reasons why watch insurance premiums have increased in the UK. The actual factors might be more complex, but this should give you a general idea.
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