Insurance routing is the practice of deciding, per order, how it should be covered — instead of blindly insuring everything through one provider. The right answer varies by order value, item type, destination, and what the carrier already includes.
The three routing outcomes
Skip
Low value and the carrier already covers it — insure nothing, keep the fee.
Carrier
Built-in carrier liability is enough — use coverage you already paid for.
Route
Needs real coverage — send it to the cheapest valid provider for that order.
What routing decisions consider
- Declared value vs. carrier coverage — is paid insurance even needed?
- Line items — jewelry, electronics, and fragile goods that many insurers exclude.
- Destination risk — high-theft ZIPs and porch-piracy patterns.
- Provider fit & price — cheapest rate that actually covers this order, with the fastest claim for that loss type.
Why it beats insure-everything: going direct to any insurer means every order gets insured at one flat rate. Routing skips what's already covered and shops the rest — often cutting insurance spend substantially.
FAQ
How is this different from a shipping insurance API?
A single insurance API covers orders through one provider. Insurance routing decides whether and where to insure across many — including using free carrier coverage.
Can I set my own routing rules?
Yes — by value, SKU, category, or destination. Or let Insurrl's AI recommend rules from your order patterns.
See the unified insurance API · developer docs