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Carrier Declared Value Coverage (Shipping Insurance)

By Last updated on: November 11, 2016

Are you insuring against lost or damaged FedEx and UPS packages? When you use the carrier’s declared value program, you’re most likely grossly overpaying. Let’s look at declared value fees and what you can do about it.

Declared value of $101 for shipment, means you will pay for the first $100. FedEx and UPS insure shipments valued at less than $100 for no charge, it’s free. But for any value declared above $100, the standard rates apply.  UPS will charge $2.70 and FedEx $3.00 at minimum.  Even if the declared value is $1 over $100, you will be charged.

Say you ship a box valued at $102. When declaring the full $102 value, you are waiving the free $100 of coverage and are required to pay the minimum insurance cost of $2.70 (UPS) or $3.00 (FedEx). for the extra $2 above $100. The carrier gets paid $2.70 to insure $2.

The cost of coverage increases.

Over the past 5 years (2013-2017), the minimum for UPS/FedEx declared value insurance has increased while the cost of additional coverage has increased.

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UPS and FedEx don’t actually sell insurance coverage on the packages you ship.  UPS even states in terms of service, “When a Shipper declares a value in excess of $100, it does not receive any form of insurance. Shippers desiring cargo insurance, all risk insurance, or another form of insurance should purchase such insurance from a third party.”

Declared value coverage is not shipping insurance. Declared value coverage allows the shipper to make a claim for the full declared value of the package, so long as the packaging meets carrier packaging and shipping standards.

How do you get the same coverage at a reduced price?

Carrier-provided shipping insurance will eat away at your bottom line every year, it might be time to look at third party insurance with U-Pic.  Not only can you reduce your costs by up to 85%, but your whole damaged package process will be much easier.


Found in 1989, U-PIC has no minimum requirement and can insure most any UPS, FedEx, DHL or USPS package.  U-PIC clients can file a claim online by logging into their website.  You will receive a claim number instantly with the ability to upload any additional required documents. You may file a claim for a damaged parcel immediately and claims are resolved in 7-10 business days!

If you are looking to reduce your shipping costs anymore fill out the form and get a personalized rate quote immediately.   Refund Retriever’s late package and billing mistake refund technology can reduce your UPS and FedEx small parcel and freight costs.  Late package refund logistics is complicated and ever-changing, Refund Retriever is your trusted partner for guaranteed service failure and billing mistake refunds.

Brian Gibbs

Author Brian Gibbs

More posts by Brian Gibbs

Brian Gibbs | President of Refund Retriever

Brian Gibbs founded Refund Retriever in 2006 while running his first eBay based business and seeing the shortcomings of other shipment auditing companies. Refund Retriever's primary focus is FedEx and UPS parcel invoice auditing. After graduating from Texas A&M University in 2001, he then graduated from the University of Houston in 2004 with a JD and MBA. Gibbs has been featured in Forbes, Entrepreneur and other publications discussing parcel auditing, shipping, e-commerce and more. Learn more at or call (800) 441-8085 for more information.

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