How Much Does USPS Insurance Cost? A Detailed Review

Choosing the right shipping carrier involves crucial decisions.

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How Much Does USPS Insurance Cost? A Detailed Review

This guide focuses on USPS, a trusted option for many, and delves into the often-overlooked aspect of shipping insurance costs.

USPS is a popular shipping option, handling billions of packages in 2022.

Major carriers like FedEx and UPS trust USPS for efficient “last leg” deliveries.

The Importance of Shipping Insurance

Shipping mishaps can happen, with USPS experiencing a 10% damage rate.

This article emphasizes the significance of insurance to safeguard against unexpected costs and maintain customer satisfaction.

Understanding USPS Shipping Insurance

Service Included Insurance Additional Coverage Available
Priority Mail Express Up to $100 Extra insurance for values beyond $100
Priority Mail Up to $50 Consider additional insurance for values surpassing $50

A guide on USPS’s site aids in comparing insurance options.

Knowing the carrier’s rules, especially for services like first-class mail, media mail, and parcel select, is crucial.

Pricing for USPS Insurance

The cost of insurance is minimal per package but accumulates for businesses shipping in volume. Pricing is tied to the declared value, as outlined below:

Declared Value Insurance Cost
Up to $50 $2.20
$50.01 to $100 $2.80
$100.01 to $200 $3.50
$200.01 to $300 $4.60
$300.01 to $400 $5.80

Services like Express Mail include the first $100 of coverage at no extra cost.

Filing a Claim with USPS

  1. Online Process: Easy and quick claim filing online, requiring package details.
  2. Claim Details: Provide USPS tracking number, shipping date, address information, and specifics on the claim.
  3. Reason for Claim: Clearly state whether the package is missing, stolen, or damaged.
  4. Proof of Value: Upload relevant receipt or invoice as proof of declared value.
  5. Evidence of Insurance: Keep and upload the receipt showing insurance purchase.

Note: Keep damaged items until the claim is resolved. USPS commits to swift payment, usually within 7 to 10 business days.

Additional Considerations for Shipping Insurance

Depreciation Risk: Payouts may be based on the depreciated value of items.

Photo Requirement: Photos of damaged items may be needed during the claims process.

Proper Packing Matters: USPS may link improper packing to damages, affecting claim payment.

Quick Claims Filing: Claims for insured mail must be filed within 60 days, and there’s a waiting period for some services.

Fragile Items Exclusion: Some fragile items might not be covered, so it’s crucial to check.

Moving Forward with Secure Shipping

Prioritize the customer experience, but also establish clear policies for handling unexpected issues.

Insurance is a valuable tool, often sufficient for covering losses.

Consistency in processes ensures customer satisfaction and long-term business success.


In conclusion, understanding USPS insurance costs is a vital step in securing your shipments.

By weighing the benefits, pricing, and additional considerations, businesses can navigate the shipping landscape with confidence, ensuring both customer satisfaction and financial stability.


Q: Why is USPS a popular choice for shipping?

A: USPS handles billions of packages and is the preferred “last leg” carrier for major players like FedEx and UPS.

Q: Why consider shipping insurance with USPS?

A: Mishaps occur; USPS sees a 10% damage rate. Insurance is vital for cost recovery and maintaining customer satisfaction.

Q: How much does USPS insurance cost?

A: Pricing is minimal per package, ranging from $2.20 to $5.80 based on declared value. Express Mail includes the first $100 coverage.


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