USPS Insurance: What You Need to Know Before You Ship

Shipping a valuable item? Adding insurance can give you peace of mind, but the rules can feel confusing. USPS offers built‑in insurance for most services, and you only pay for the coverage you need. This guide breaks down the basics, shows you how to calculate the cost, and shares smart ways to keep the price down.

How USPS Calculates Insurance Costs

USPS insurance is charged per ounce of coverage, not per package weight. The first $100 of coverage is free for many services like Priority Mail and Priority Mail Express. After that, you pay about $0.83 for every additional $100 of value. If you ship a $500 item, you’ll pay roughly $3.32 for insurance. Keep in mind that some services, such as First‑Class Package, start charging right away, so check the specific rate chart for the service you choose.

Tips to Save on USPS Insurance

First, only insure what matters. If the item’s replacement cost is low, consider using the free $100 coverage and avoid extra fees. Second, bundle items of similar value in one package; that way you only pay one insurance fee instead of multiple small ones. Third, use USPS’s online shipping tools—adding insurance during checkout automatically shows the exact cost, so you don’t get surprised at the counter.

When you’re ready to add insurance, you can do it at the post office or online. Online is quicker: just enter the package weight, dimensions, and declared value, and the system will apply the insurance charge instantly. At the counter, ask the clerk to “add insurance” and confirm the total before you pay.

Remember that insurance only covers loss or damage while the package is in USPS’s hands. If the item is already damaged before you hand it over, the claim won’t be honored. Pack your items securely—use bubble wrap, sturdy boxes, and tape the seams well. A well‑packed parcel not only reduces the risk of damage but also strengthens your claim if something does go wrong.

If you need to file a claim, start within 60 days of the shipment date. Keep the original receipt, tracking number, and any photos of the damaged goods. You’ll fill out a claim form online or at the post office, and USPS will investigate. Most approved claims are paid by check or direct deposit within a few weeks.

For high‑value shipments—think electronics, jewelry, or collectibles—consider adding extra documentation. A purchase receipt, appraised value, or even a video of the item before shipping can speed up the claim process. It also helps you prove the exact amount you’re claiming.

Finally, compare USPS insurance with third‑party providers. Companies like Shippo or ParcelGuard sometimes offer lower rates for the same coverage, especially for bulk shippers. If you ship frequently, a third‑party plan might save you more money in the long run.

Bottom line: USPS insurance is straightforward once you know the free limit and the per‑$100 cost. Use the free coverage when you can, add insurance online for speed, and pack smart to avoid claims. With these tips, you’ll protect your parcels without blowing your budget.