How much does USPS shipping insurance cost?

USPS insurance fees

Notice 123 prints one insurance table, priced by the coverage you ask for, with no separate online price. Over $600 the fee is $9.05 plus $1.50 for each $100 or fraction of $100 above $600.

The fee for your declared value

If the label already includes $100

“When additional insurance is purchased, it replaces the included insurance.”

So for a $150 item on Priority Mail you buy $150 of coverage ($4.50), not $50; under that rule, buying $50 of coverage on a $150 item would leave it covered for $50. DMM 503.4.2 treats Priority Mail and Ground Advantage the same way, though only USPS's Priority Mail page states the replacement rule. The conditions for the included $100 (a USPS tracking barcode, retail or commercial prices) are on what the included $100 covers.

“Note: Priority Mail Express, Priority Mail, and USPS Ground Advantage include $100.00 of insurance coverage; see 503.4.0.”

USPS's extra services page adds that Priority Mail's included insurance doesn't apply when bought with certain extra services, without listing them: “Priority Mail insurance is not included when you purchase it along with certain extra services.” (USPS extra services page) If you add extra services to a valuable package, buy coverage for its full value.

Worked example: a $350 lens

Media Mail: insure it, or ship Ground Advantage?

Media Mail includes tracking but no insurance, so a $60 book sent by Media Mail is covered only if you buy coverage. Ground Advantage includes $100, so on short trips an online Ground Advantage label can cost less than Media Mail plus $3.50 for the same coverage; the last column shows where at USPS's current prices.

Ground Advantage is also faster: USPS's services page gives 2-8 days for Media Mail and 2-5 days for Ground Advantage. Whether Media Mail includes tracking and what else it can carry: Media Mail tracking and insurance.

Over $500: a signature at delivery

“An item insured for more than $500.00 receives a delivery scan ... and USPS provides a signature as the delivery record to the mailer electronically”

Over $500 you can also add Insurance Restricted Delivery ($8.80) to limit delivery to the named addressee (Restricted Delivery), or a paper return receipt ($4.65). USPS's extra services page says the recipient may have to show ID before delivery. Signature Confirmation can only be combined with insurance of $500 or less (DMM 503 Exhibit 1.4.1).

Rules that affect what you can insure

• One source only: “Postal insurance may be purchased at only one source for each mailpiece; combining postal insurance from multiple sources is not permitted.” (DMM 503.4.3.1)
• No insurance on merchandise sent to people who didn't order it: “Parcels containing matter offered for sale, addressed to prospective purchasers who have not ordered or authorized their sending.” (DMM 503.4.3.2)
• Bought at a Post Office, through Click-N-Ship or a USPS-approved PC Postage provider, insurance covers up to $5,000 (DMM 503.4.3.1). For more, see Registered Mail.
• Insurance fees aren't refunded once USPS accepts the package, even if it's withdrawn (DMM 604.9.2.4).
• USPS encourages handing insured packages to a retail associate (DMM 503.4.3.1).
• Only at mailing: “Insurance may be obtained only at the time of mailing” (PRC Mail Classification Schedule 1505.9.1).
• A scan or a receipt: “In order to be eligible for insurance indemnity, a mailpiece must have received at least one USPS processing scan or the customer must provide proof of insurance” (DMM 503.4.3.1).
• Priority Mail's included $100 without a label file: “Priority Mail pieces meeting the requirements under 4.2 ... but not supported by a Shipping Services file must have a full acceptance scan in order to qualify for automatic insurance coverage.” (DMM 503.4.2)
• Not on Priority Mail Open and Distribute or Premium Forwarding Service, which get no included coverage (DMM 503.4.2; USPS's Priority Mail page).
• Priority Mail Express with the signature waived: “When “signature required” service is not requested or when “waiver of signature” is requested, additional insurance is not available.” (DMM 503.4.1.1)
• Cash and negotiable items: “Except for Registered Mail, the maximum indemnity for negotiable items (defined as instruments that can be converted to cash without resort to forgery), currency, or bullion, is $15.00.” (DMM 609.4.1)
• The $0.80-a-piece bulk insurance discount in Notice 123 is for authorized bulk mailers who meet DMM 503.4.4, including at least 10,000 insured articles a year, and isn't available for insurance bought online (DMM 503.4.3.1).
• Delivery records: “For Insurance articles insured for $500.00 or less, the Postal Service maintains delivery information (not including a signature) for six months.” (PRC Mail Classification Schedule 1505.9.1) Over $500: “For articles insured for more than $500.00, the Postal Service maintains a delivery record (which includes the recipient’s signature) for two years” (PRC Mail Classification Schedule 1505.9.1) (how long USPS keeps signatures).

What insurance cost before