Why are insurance premiums so high?

Now may be the ideal time to sell unwanted valuables.


With the UK experiencing the highest annual rate of inflation in over thirty years, many are looking to make lifestyle changes to reduce costs, in order to help their income stretch further. Whether it be trying to keep energy bills down, saving money on food, conserving petrol, or generally cutting out unnecessary expenditure, looking for ways to save money where possible is a common theme. 



Financial Commitments

Financial commitment to non-essential insurance policies has become a serious consideration for many. Insurance premiums on valuables such as jewellery, can cost thousands of pounds, depending on the value of the item, and spending money on hypothetical risks does not necessarily agree with the current financial climate. 

An insurance premium is the amount paid to an insurance company for coverage, typically against potential loss, theft, or damage. In the case of most insurance policies whether it be life, health or car insurance, they operate on a hypothetical basis, in the unfortunate event that you need to claim following an incident.



Insurance Premiums

Let’s consider why insurance premiums are so high.

Firstly, and perhaps most obviously, art, antiques, jewellery and watches may be rare, or have been very expensive to buy. This means that the replacement cost will be significant, and this replacement cost will dictate the insurance cover level that needs to be held. The higher the estimate, the higher the insurance premium charged.

Secondly, as well as monetary value, some items can be particularly rare or hard to replace, so the owner will need suitable cover in place which takes into account the scarcity factor. For example, a rare vintage car or a rare classic watch that is hard to find, this factor will only increase insurance premiums.

Lastly, it is often the case that valuable items have a higher 'risk factor' associated with them. Jewellery is considered particularly high risk; necklaces, rings and watches are often targeted by theives and can also be lost or misplaced, antique jewellery can be very delicate (gemstones can become loose in their settings and fall out), whilst jewellery is often high in value; all the characteristics that typically push up insurance premiums.



Selling at Auction

Whilst insurance cover is of course vital, the current economic climate is leading many people to consider saving money by cutting back on non-essential insurance premiums.

Do you have any expensive jewellery that is no longer to your taste? Have you got a premium brand or luxury watch tucked away in a bedside drawer that is never worn? Is there a valuable oil painting hanging in a spare room that is rarely seen? 

If you have any Jewellery, Watches, Art or Antiques that you are considering selling, why not promote those items within a global shop window?  

The team at Dawsons can help you to achieve the best possible sale price at auction.



With clients in over 120 countries around the world, and record results being achieved at auction, there has never been a better time to sell with Dawsons. Our in-house marketing reaches millions of known buyers each month, generating highly competitive bidding that ensures the best possible sale prices for our clients.


If you are thinking of selling any Art, Antiques or Jewellery, why not arrange to speak with one of our friendly Experts?

We can provide you with an auction estimate from the comfort of your own home via video call, you can book a face-to-face appointment at one of our salerooms in London or Berkshire, or alternatively, we can arrange to come and visit you at home.

Please do get in touch with us with any enquiries you may have.

We would love to hear from you.

0207 431 9445 / info@DawsonsAuctions.co.uk