Best Shipping Insurance Options Compared

Every major carrier gives you some protection, but it isn’t the same kind:

USPS includes up to $100 of insurance with Priority Mail Express, Priority Mail and Ground Advantage.
UPS and FedEx limit their liability to $100 per package unless you declare a higher value and pay for it. FedEx’s Service Guide describes declared value as a limit of liability, “not insurance coverage.”

To cover more than $100, the published prices as of fall 2026 are:

USPS insurance: $4.50 for coverage up to $200, rising to $7.55 for $500, up to $5,000 of coverage.
FedEx declared value: $4.95 for values of $100.01 to $300, then $1.65 per $100.
UPS declared value (retail rate guide): $5.10 for values of $100.01 to $300, then $1.70 for each $100 of the total value.

Shipping platforms and marketplaces also sell third-party coverage, sometimes at higher limits.

This guide compares the built-in coverage, the cost of adding more, the value limits that catch shippers out, and how claims work. Prices are as published in USPS’s Notice 123 (effective Oct. 4, 2026), FedEx’s 2026 Service Guide (updated Sept. 11, 2026) and UPS’s 2026 retail rate guide (updated Sept. 7, 2026).

Included Coverage by Carrier

Carrier and service	Included protection	Conditions
USPS Priority Mail Express, Priority Mail	Up to $100 insurance	Needs a USPS Tracking barcode. USPS says Priority Mail insurance “is not included when you purchase it along with certain extra services.”
USPS Ground Advantage	Up to $100 insurance	Needs a USPS Tracking barcode
USPS Media Mail, First-Class Mail	None	You can buy insurance for eligible mail
UPS (most services)	$100 liability per package	Higher value must be declared and paid for
FedEx (Express, Ground, Home Delivery)	$100 liability per package	Higher value must be declared and paid for

Pirate Ship notes one exception for its users: UPS Ground Saver labels come with $50 of carrier liability rather than $100.

What Extra Coverage Costs

USPS Insurance

USPS sells merchandise insurance by the amount of coverage you want, up to $5,000. As of October 2026:

Coverage desired	Fee
$0.01-$50	$2.80
$50.01-$100	$3.50
$100.01-$200	$4.50
$200.01-$300	$4.55
$300.01-$400	$6.05
$400.01-$500	$7.55
$500.01-$600	$9.05
$600.01-$5,000	$9.05 plus $1.50 per $100 over $600

These amounts are as published in Notice 123. USPS adds that items insured for more than $500 get a delivery scan and a signature record. You may buy postal insurance from only one source per mailpiece, so you can’t combine USPS insurance bought through two channels. For truly high-value items, Registered Mail can be insured for up to $50,000 at a Post Office.

FedEx Declared Value

FedEx’s 2026 Service Guide charges $4.95 for U.S. package shipments valued at $100.01 to $300, and $1.65 per $100 of declared value for shipments valued above $300. Most U.S. package services accept declared values up to $50,000. FedEx limits a list of categories to $1,000 of declared value, including:

artwork and antiques
glassware, ceramics and china
jewelry and furs
collectibles
plasma screens
musical instruments more than 20 years old

If you ship these, a higher declared value won’t buy more protection.

UPS Declared Value

UPS’s 2026 retail rate guide charges nothing up to $100 and $5.10 for declarations of $100.01 to $300. Above $300, the charge is $1.70 for each $100 of the total value, counting the first $100. UPS gives the example of a $950 declaration costing $17 (10 x $1.70). UPS caps declared value at $50,000 per package, with an enhanced $70,000 maximum for some eligible packages. Its terms set lower caps for some ways of tendering a package, including:

$500 for packages left in a UPS Drop Box.
$1,000 for packages prepared in a UPS shipping system and handed to a driver or UPS Customer Center without a signed high-value shipment summary.

UPS’s rate guide also describes UPS Package Shield, which it lists with an estimated release in fall 2026. It’s priced at $1.70 per $100 of total value and adds two features. With “Porch Protection,” UPS is responsible if it doesn’t get a signature and the package is stolen before the recipient takes possession. UPS also uses the invoice amount when it determines its maximum liability.

Example: Covering a $500 Item

As of fall 2026, USPS insurance for $500 costs $7.55. A $500 UPS declaration at retail costs $8.50 (5 x $1.70). FedEx charges $1.65 per $100 of declared value for a $500 shipment. Remember that FedEx’s $1,000 cap applies if the item is, say, a vase or a painting, and UPS’s caps depend on how you tender the package.

Third-Party and Marketplace Insurance

You can also buy coverage from an insurer instead of the carrier, often inside the software you already use:

Pirate Ship sells InsureShield coverage. It says you can declare “up to $10,000 in coverage for UPS shipments and up to $5,000 for USPS.” Only the shipper can file an InsureShield claim, through the InsureShield claims portal.
eBay sells ShipCover insurance through eBay Labels. eBay says USPS shipments “can be covered for up to $15,000.”
Other insurers sell policies directly or through shipping platforms.

Before you switch from carrier coverage, compare:

The premium at your typical values.
Excluded items and any deductible.
Who can file, and the filing deadline.
Whether you must file a carrier claim first.
What proof of value and delivery the policy requires.

Private insurance labels also have to stay off the address side of USPS mail, according to DMM 503.

What Insurance Won’t Cover

Coverage is only as good as its exclusions. USPS’s claim rules (DMM 609) list cases it won’t pay, including:

loss after delivery
sentimental rather than actual value
consequential losses
spoiled perishables
abrasion to items that weren’t properly wrapped
fragile items that couldn’t survive the mail “regardless of packaging”

USPS also pays only an item’s actual value, and it depreciates used items. UPS and FedEx look at packaging adequacy too, and both ask to inspect damaged boxes. Good packing is part of being insured. See how to ship fragile items.

Filing a Claim: Deadlines at a Glance

USPS: File damage claims within 60 days of mailing. USPS says it usually sends decisions within 5-10 days and pays approved claims within 7-10 business days, and you can appeal twice, each within 30 days.
UPS: Start a claim within 60 days of the scheduled delivery date. UPS says resolution typically takes 8 to 10 business days unless more investigation is needed.
FedEx: For U.S. packages, file damage or missing-contents claims within 60 calendar days of the ship date, and lost-package claims within nine months. International damage claims are due within 21 days.

Keep the box, the packing and the contents until the claim is settled. For step-by-step instructions, see how to file a shipping claim and how to file a USPS insurance claim.

When to Buy More Coverage

Built-in coverage is enough when an item is worth $100 or less and ships by a service that includes it. Consider more coverage when:

The item is worth more than $100.
The item is hard to replace.
You’re shipping by a service without included insurance, such as Media Mail.

For valuable items, also add a signature. USPS won’t pay for a loss after delivery, and UPS’s Package Shield is built around exactly that gap. Sellers on marketplaces should check the platform’s own coverage. Our eBay and Etsy seller guide explains the options, and our Stamps.com vs. Pirate Ship vs. ShipStation comparison covers the platforms.