How Much is FedEx insurance per $100? Ever need to ship something valuable? FedEx offers insurance for your packages to provide financial protection in case of loss or damage during shipping. The cost of this insurance depends on the value of your item, but not at a flat rate per $100 of value. This guide will break down how FedEx calculates insurance costs and what you can expect to pay.
FedEx offers a standard coverage of $100 for free. If your package exceeds that value, you’ll need to pay additional fees for declared value which acts as additional insurance. The cost for this declared value depends on the total value of your package and the type of shipping service you choose.
FedEx Included Coverage: The First $100 is Free
Most FedEx shipping services come with a complimentary $100 worth of coverage. This means that if your package is lost or damaged during transit, FedEx will reimburse you for up to $100 without any additional fees.
Exceeding $100? Here’s How Much FedEx Insurance Costs
If your shipment’s value exceeds $100, you can purchase declared value coverage to increase your financial protection. FedEx offers tiered pricing for declared value:
- Up to $300: A flat fee of $3.90 applies.
- Over $300: The fee is $3.90 plus an additional $1.00 per every $100 of declared value (or $1.40 per $100 for FedEx Freight).
Here’s a table summarizing the cost structure:
| Declared Value | Insurance Cost |
| Up to $100 | Included (Free) |
| $100.01 to $300.00 | $3.90 |
| $300.01 to $400.00 | $4.90 |
| $400.01 to $500.00 | $5.90 |
| (and so on, adding $1.00 per additional $100 increment) |
Understanding Declared Value and Why It Matters
The declared value represents the estimated value of your shipped items. It’s crucial to declare an accurate value for several reasons:
- Accurate Reimbursement: In case of loss or damage, FedEx will only reimburse you up to the declared value. Under-declaring the value could result in a lower payout than the actual cost of your items.
- Coverage Eligibility: Certain high-value items might have limitations or exclusions from coverage unless you declare their full value.
What Does FedEx Insurance Cover?
FedEx insurance generally covers:
- Loss: If your package goes missing during transit.
- Damage: If your package is physically damaged during transportation.
Important Limitations and Exclusions to Consider
While FedEx insurance offers valuable protection, there are some limitations and exclusions to be aware of:
- Specific Items: Certain items like currency, artwork, or perishable goods might have limited coverage or require additional steps for insurance.
- Indirect Losses: FedEx insurance doesn’t cover consequential damages or lost profits due to a shipping issue.
- Intentional Acts: Loss or damage caused by intentional acts (theft by the sender/recipient) is not covered.
For a complete list of exclusions and limitations, refer to the FedEx insurance terms and conditions on their official website.
Do You Need FedEx Insurance?
Here are some factors to consider when deciding if FedEx insurance is right for you:
- Value of Your Shipment: If your package contents are valuable, insurance provides financial protection in case of unforeseen circumstances.
- Peace of Mind: For important or irreplaceable items, insurance can offer peace of mind during the shipping process.
- Risk Tolerance: If you’re comfortable absorbing the potential loss if something happens, you might decide to forgo insurance for lower-value shipments.
Getting a Quote and Purchasing FedEx Insurance
You can easily get a quote and purchase declared value coverage during the FedEx shipping process. Simply enter the declared value of your shipment, and the corresponding insurance cost will be automatically calculated and added to your total shipping charges.
FedEx Insurance: A Valuable Tool for Secure Shipping
By understanding the cost structure, coverage details, and limitations of FedEx insurance, you can make informed decisions about protecting your valuable shipments. For important items or peace of mind, FedEx insurance offers a reliable and cost-effective way to safeguard your package during its journey.
FAQs
Is FedEx insurance mandatory?
No, FedEx insurance is entirely optional. You can choose to ship without additional coverage, but you’ll be limited to the standard $100 liability if your package is lost or damaged.
What does FedEx insurance cover?
FedEx insurance covers the declared value of your shipment in case of loss, damage, or theft during transit. It may also cover some additional costs associated with the incident.
Are there any declared value limits?
Yes, declared value limits vary depending on the FedEx service you choose. Refer to the FedEx website for specific limits.
How do I file a claim with FedEx insurance?
If your shipment is lost, damaged, or stolen, you can initiate a claim process through the FedEx website or by contacting customer service.
By understanding the cost structure of FedEx insurance per $100 of declared value, you can make informed decisions about protecting your valuable shipments.