Millennials spending big to pop the big question

New research from Allianz Australia reveals Millennials are spending more on average than any other generation on engagement rings.

Despite spending significant amounts of money on this very important piece of jewellery, one in two (48%) Australians are not thinking to insure one of the biggest purchases they’ll ever make.

While 1 in 5 (22%) Aussies are now spending an average of $5000 on an engagement ring, the research showed that younger Australians are amongst the biggest spenders.

One in 10 millennial Australians (12%) report spending a staggering $10,000 or more to pop the big question, with some even spending over $20,000 on an engagement ring – millennials the only generation to report spending this. This represents a significant increase from baby boomers, of which only 4% invested more than $10,000 in a ring and over a quarter (28%) choosing to spend less than $2000 in total.

“Although millennials are spending more money than ever before, the carefree attitude when it comes to protecting one’s engagement ring is apparent across each generation, with half of all Australians failing to insure their rings,” said Donna Walker, Allianz Australia Chief Technical Officer.

“Regardless of the significant investment, 1 in 3 (31%) Australians admit taking their engagement ring off regularly, leaving it in all sorts of forgettable places – despite not having the ring insured.

“While I’m sure it’s done with only good intentions, our research has shown that 1 in 3 Aussies often take their ring off for daily activities, such as washing dishes or exercise, increasing the chance of losing it,” said Ms Walker.

“Additionally, like any piece of jewellery, sometimes it can slip off while you’re doing anything from chores to running or dancing at a party, so it’s very important to insure our most valued possessions, especially our engagement rings.”

“Many people don’t realise an engagement ring can easily be added to your existing home contents insurance. And for items that you take out of the house regularly – like engagement rings – people should consider portable contents insurance.”

To avoid finding yourself unexpectedly out of pocket due to loss or theft, it’s important to consider whether you need to include your ring in your home and portable contents insurance as ‘specified items’.

Allianz has provided tips and tricks to help protect your engagement ring, including:

• If you take your ring off regularly for work or exercise or even jumping in the shower, have a specific safe place like your jewellery box where you always know where it is when you take it off around the home
• If you have to take off your ring for work or when you are on the run, have a ring satchel you know to put your ring in. Have a safe spot in your bag or in a specific pocket to make sure you always know where to check for your most valuable piece of jewellery
• Contact your insurer and have a conversation about how to add your engagement ring to your existing policy (taking into account portable contents) and ensuring your ring is explicitly listed under ‘specified items’
• Ask questions and be aware of what exactly your insurance policy entails, including claims and excess fees.
• Get an updated valuation of your engagement ring from an Australian jeweller every 3 years to make sure you are covered for its true value at the time of claim.