You paid for the item. You paid for shipping. Now the package is somewhere between a warehouse and your door — with no guarantee it arrives intact.
Standard carrier coverage is shockingly low. USPS First Class International: $0. FedEx and UPS basic coverage: $100. For anything valuable, that's not enough.
Here's how the main options compare.
What Shipping Insurance Covers
Shipping insurance typically covers:
- Loss — package declared lost by the carrier after their investigation period
- Theft — package marked delivered but not received (porch piracy)
- Damage — item arrives broken or unusable
What it usually doesn't cover: delays, customs seizure, perishables, prohibited items, and damage from improper packaging.
Best Shipping Insurance Options in 2026
1. Shipsurance
Best for: Individuals and businesses who ship regularly
Cost: ~$0.55 per $100 of declared value
Max coverage: $10,000 per shipment
Shipsurance is the most widely used third-party shipping insurance in the US. It works with USPS, UPS, FedEx, DHL, and most major carriers. Claims process in 5–10 business days — significantly faster than going directly through a carrier.
Strong international coverage including inbound shipments from China and Southeast Asia, which carrier insurance often handles poorly.
2. Route (Package Protection)
Best for: Online shoppers when the merchant offers it at checkout
Cost: ~1–2% of order value
Max coverage: Varies by retailer
Route is the "Package Protection" option at checkout on thousands of stores. If your package is lost, stolen, or damaged, you file directly through the Route app.
Important update: Route was acquired by Global-e Online in 2023 and is in transition. Some merchants that previously used Route have moved to alternatives like Corso or Redo. If you see package protection at checkout, check which provider it actually is before assuming coverage details.
The experience is fast and consumer-friendly when it works. The limitation: you can't buy Route coverage independently — it's only available when the merchant has it installed.
3. UPS Capital (InsureShield)
Best for: Businesses shipping primarily through UPS
Cost: ~$0.65 per $100 of declared value
Max coverage: $70,000 per shipment
Integrates directly with UPS shipping accounts. Good for businesses where UPS is the primary carrier and seamless integration matters more than the slight cost premium over Shipsurance.
4. Carrier-Provided Insurance
Best for: Low-value shipments only
Cost: Included up to $100, then ~$0.80–$2.50 per $100 depending on carrier and service
Every major carrier offers coverage add-ons. The problems: claims take 30–120 days, require extensive documentation, and get denied frequently on grounds buried in the terms of service. Fine for shipments under $100. For anything above that, third-party coverage pays out faster and more reliably.
Cost Comparison
| Provider | Cost per $100 | Max Coverage | International | Claim Speed |
|---|---|---|---|---|
| Shipsurance | ~$0.55 | $10,000 | Yes | 5–10 days |
| Route | ~1–2% of order | Varies | Varies | 3–7 days |
| UPS Capital | ~$0.65 | $70,000 | Yes | 10–20 days |
| USPS Insurance | $0 (up to $100) / ~$2.05+ | $5,000 | Limited | 30–60 days |
| FedEx Declared Value | $0 (up to $100) / ~$0.80+ | $50,000 | Yes | 30–90 days |
Is It Worth It?
Run the math: insuring a $300 international shipment via Shipsurance costs about $1.65. That's a 0.55% premium for full coverage against loss or damage.
On high-risk international routes — China to the US, Southeast Asia to Europe, Latin America — loss and damage rates can run 1–3%. Insurance is almost always worth it above $100 on these routes.
Even on lower-risk domestic routes, the premium is so small relative to typical item values that it rarely makes financial sense to skip it for anything over $50.
How to File a Claim
- Document damage immediately — photograph the box, packaging material, and damaged contents before moving anything
- Keep all original packaging — insurers and carriers often require the original box for inspection
- Get written confirmation from the carrier of loss or damage
- File within the claim window — Shipsurance requires filing within 60 days of ship date for lost packages; damage claims within 30 days of delivery
Bottom Line
For international shipments, Shipsurance is the strongest all-around option — low cost per $100, fast claims, and wide carrier support. Use Route (or whichever checkout protection is offered) if you're buying from a store that provides it. Skip carrier insurance for anything over $100.
Rates and coverage terms as of March 2026. Verify current terms with providers before purchasing.