Shipping Insurance
What shipping insurance is, what it covers, and when you should buy it.
What Is Shipping Insurance?
Most carriers include a base level of insurance with their services -- for example, USPS Priority Mail includes $100 and FedEx/UPS include $100 of declared value coverage. For items worth more than the included amount, you can purchase additional insurance at the time of shipping. The cost is typically $1-3 per $100 of declared value. Third-party shipping insurance providers like Shipsurance and InsureShip often offer lower rates than carrier insurance. To file a claim, you'll need proof of value (receipt or invoice), proof of damage (photos), and the tracking number showing delivery status.
Why It Matters
How Each Carrier Handles Shipping Insurance
USPS
USPS includes $100 of insurance with Priority Mail and Priority Mail Express. Ground Advantage includes $100 of coverage. Additional insurance can be purchased up to $5,000. Claims are filed at usps.com within 60 days of the mailing date.
FedEx
FedEx includes $100 of declared value coverage on most domestic services at no extra charge. Additional declared value coverage can be purchased at approximately $3.00 per $100 of value. Claims must be filed within 60 days at fedex.com.
UPS
UPS includes $100 of declared value coverage on most domestic services. Additional coverage costs approximately $2.70 per $100 of declared value. Claims must be filed within 60 days of delivery (or scheduled delivery for lost packages) at ups.com.
Tips
Related Terms
Signature Confirmation • Tracking Number • Package Tracking
Frequently Asked Questions
Carrier insurance typically costs $1-3 per $100 of declared value above the included coverage. Third-party insurance providers may offer rates as low as $0.50-$1.00 per $100. The exact cost depends on the carrier, service level, and value of the item.
Shipping insurance covers loss (package never delivered), theft (package stolen after carrier confirms delivery in some cases), and damage during transit. It does not cover items that were improperly packed, perishable goods that spoil, or prohibited items.
File a claim through the carrier's website (usps.com, fedex.com, or ups.com) or your third-party insurance provider. You'll need the tracking number, proof of the item's value (invoice or receipt), and photos of damage if applicable. Claims must typically be filed within 60 days.
For items worth more than the included coverage ($100 for most services), insurance is usually worth the small cost. A $2-3 insurance fee on a $500 item is a wise investment. For low-value items already covered by the carrier's included insurance, additional coverage is unnecessary.
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