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Shipping Insurance Calculator — Parcel & Freight Coverage Cost

Calculate the cost of shipping insurance for parcels and freight. Compare carrier declared value charges to third-party cargo insurance and find your best coverage option.

Quick answer: Carrier declared value: typically $0.85–$1.10 per $100 declared (FedEx/UPS). Third-party cargo insurance: $0.35–$0.75 per $100. For shipments over $500, third-party insurance is almost always cheaper.

🛡️ Shipping Insurance Calculator

FedEx/UPS: ~$0.90/100. LTL: varies by carrier.
FedEx/UPS: $100. LTL: weight × released rate.
Typical: $0.35–$0.75 per $100 value
Best Option Savings
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Carrier DV Cost
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3rd Party Insurance
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How to Use This Calculator

  1. Enter shipment value — full replacement value of the goods being shipped.
  2. Enter carrier DV rate — FedEx/UPS charge about $0.90 per $100 declared above their free $100 liability.
  3. Enter 3rd party rate — get quotes from InsureShip, U-Pic, Shipsurance, or a cargo broker.
  4. Compare and choose — for most shipments over $300, third-party insurance is cheaper and often provides broader coverage.

Worked Example

$2,500 shipment via FedEx. Carrier DV: $0.90/100, $100 free liability. 3rd party: $0.55/100. 50 shipments/month.

  1. Carrier DV: ($2,500 − $100) ÷ 100 × $0.90 = $21.60
  2. 3rd party: $2,500 ÷ 100 × $0.55 = $13.75
  3. Savings per shipment: $7.85
  4. Annual savings: $7.85 × 50 × 12 = $4,710

Frequently Asked Questions

No. Declared value increases the carrier's liability limit but does not create an insurance policy. The carrier can still deny or reduce claims based on their tariff rules (packaging, inherent vice, etc.). Third-party cargo insurance is a true insurance policy with broader coverage and a separate claims process.

All-risk cargo insurance covers physical loss or damage from external causes during transit. It does not cover: delay, market loss, inherent vice, improper packaging, or war/terrorism (unless added by endorsement). Read the policy carefully — some exclude electronics, fine art, or high-value items without specific endorsement.