Nothing is more disappointing than a damaged or missing package when you have been waiting for its arrival. It hurts, even more when the package seems like it took so long to get there.
To get over this feeling, you want a service you can trust, which could be shipping insurance. When you buy a product from a business, they expect their item to arrive on time and damage free. Businesses need reliable shipping methods to give their customers the best experience possible.
If shipping is not on time or damaged, it may not be the business’s fault, and the customer could blame them for bad service. In the long run, costing them a customer. That is why services like fedex insurance are essential. Also, it is important to read about your options. Numerous alternative shipping insurance methods may have better benefits than FedEx.
In this article, you should be able to answer the questions: what is shipping insurance, what’s the cost, what is the declared value, and what are my other options? The first step we have to know is FedEx insurance.
What Is Shipping Insurance?
Shipping insurance is a policy that protects products while they are going out for shipment. It protects a company and yourself when shipping something of value. No one wants to lose a product and not get compensated for it.
Many Americans have some sort of housing or car insurance to protect their assets, and it makes sense to have the packages you ship have some insurance as well. There are numerous ways to ship your package UPS, USPS, and FedEx are all examples, but we will focus on FedEx.
FedEx does not precisely use shipping insurance. Instead, they use a declared value to offset the cost of stolen, damaged, and lost packages. The first 100 dollars of the declared value is free, so you won’t have to do any paperwork for packages declared under $100. If the cost is higher, you will have to pay for extra coverage, which we will discuss in the next section.
It is important to note that if you want to use this declared value on a damaged or lost package, ensure that a FedEx worker has packed your item at a FedEx location. FedEx can deny your claim if you package it yourself.
Also, there are more ways to get insurance on items you ship. Third-party businesses now provide more coverage per package and easier ways to process claims. Consumers want to make sure they get the best service for their money.
What Is the Cost?
One of the most important questions anyone has to ask is how much this will cost me. The price has a considerable role when a customer plans to ship something, especially when they are a business owner and can send hundreds of items simultaneously.
The price of the FedEx insurance will depend on your item’s declared value and the types of FedEx shipment you want. There are five types of FedEx shipping you can try, and you can use the one that caters to your situation.
There is FedEx SameDay and SameDay City, and there is U.S Express package service, U.S ground service, and International Ground service. You can get $300 of coverage for $3 and an extra $100 for an additional $1. Then you can receive $2000 of coverage for $20.
When shipping valuable items, it is in your best interest to ship them separately because the maximum value is for all the items in the shipment. It is better to ship them separately to get full convergence, especially if the total equals more than the $2,000 limit.
What Is Declared Value?
You may be wondering what all this declared value is talking about. The concept may be confusing at first but when broken down it is pretty simple. With the declared value, you must give FedEx an estimate of how much your item is worth.
You may have to show proof of value for your item. This can be a receipt to show that you did not exaggerate the cost of something you sent. You only need to show proof if your item is unfortunately lost or stolen in FedEx’s possession, so you will not need to show it upfront.
As previously stated, the first $100 declared value is free, and you do not have to pay. You can purchase more insurance online or at a physical FedEx location if your item costs more. Some items, though, do have a limitation on how much declared value they can receive.
For the following items, there is a $1,000 limit of declared value for each item, artwork, jewelry, furs, precious metals, antiques, and collectibles.
Other Options and Conclusion
Consumers today are always looking for the best option; whichever has the best prices and dependability will win. Knowing your insurance rates before shipping your item is essential because you do not want any surprise fees popping up.
The UPS and the USPS have their rates and fees that you should consider and base your decision on whichever gives you the best options. Although besides these companies, there are other avenues for receiving shipping insurance.
There are third-party shipping insurance agencies that specialize in valuable shipments. However, shipments can be over $2,000, and insurance limits can be even higher, up to $150,000. Make sure you research before trying any shipping service to get the best coverage.
Hopefully, you will know if FedEx insurance is right for you after this article. A lot of information was given to you about how FedEx shipping insurance works and how it can benefit you.
