USPS Insurance Cost – What You Need to Know

If you’re sending something valuable, you probably wonder how much extra you’ll pay for insurance. USPS offers a simple way to protect your parcels, but the fees can feel confusing. This guide breaks down the basics, shows you the real numbers, and gives quick tips to avoid surprise charges.

How USPS Calculates Insurance Fees

USPS charges insurance based on the declared value of the item. The first $100 is covered for free when you use Priority Mail or Priority Mail Express. Anything above that costs $0.75 for each additional $1‑$100 of value. For example, a $250 package will cost $1.13 in insurance (the first $100 free, then $0.75 for the next $100, and $0.38 for the remaining $50).

If you ship with First‑Class Package Service, the free coverage is only $50, and the same $0.75 per $100 rule applies after that. The rates stay the same for domestic shipments, but international insurance works a bit differently. For most international services you can add up to $5,000 in coverage, and the fee is calculated on a per‑$100 basis, usually around $2‑$3 per $100 of value.

Remember, the insurance fee is added at the time you create the label. You can’t add it later, so double‑check the value before you print.

Tips to Save on USPS Insurance

First, only insure what you really need. If the item is low‑value, consider using a service with free coverage that matches the value. Second, combine items when possible. Shipping a $150 item together with a $50 item lets you use the free $100 coverage for the higher‑value piece and only pay for the extra $50.

Third, use the USPS online calculator. It shows the exact charge before you buy the label, so you won’t be surprised at checkout. Fourth, keep receipts and photos of the packed goods. If something goes wrong, a clear claim speeds up the payout.

Finally, compare with other carriers. FedEx and UPS often charge a flat percentage of the declared value, which can be higher for low‑value packages but cheaper for high‑value shipments. Knowing the numbers helps you pick the cheapest option for each shipment.

Bottom line: USPS insurance is straightforward—first $100 free, then $0.75 per $100. Check the declared value, use the online calculator, and bundle items when it makes sense. With these steps, you’ll protect your parcels without blowing your budget.