Parcel insurance reimburses you when a shipment is lost, stolen, or damaged. Most e-commerce sellers buy it through a shipping platform or a standalone insurer — and most overpay by insuring orders their carrier already covers.
What parcel insurance costs (2026)
| Provider | Typical rate | Note |
|---|---|---|
| Route | ~2.5% (1.5–5%) | Customer-paid at checkout |
| Shippo (XCover) | 1.25% | 1.50% international |
| ShipStation (ParcelGuard) | ~1% | $0.99–1.09 / $100 |
| EasyPost | 1% flat | $1 minimum |
| Shipsurance | ~0.9% (varies) | Volume/commodity based |
| U-PIC | ~0.6% | Strong on high-value |
| Carrier liability | ~$100 included | Loss only; not post-delivery theft |
The mistake most sellers make
USPS Priority, UPS, and FedEx include ~$100 of built-in liability. If you insure every order through one provider, you're paying to re-cover value the carrier already protects — on a big share of shipments.
The smarter approach: use carrier coverage first, then insure only the orders that truly need more — routed to the cheapest valid provider. That's what Insurrl does automatically.
Coverage gaps to watch
- Jewelry & watches — excluded or capped by most standard providers. See jewelry insurance.
- High-value orders — carrier caps ~$100; standard providers often cap at $5K. See high-value insurance.
- Electronics — high-theft, high-density. See electronics insurance.
FAQ
Is parcel insurance worth it?
For high-value or high-theft orders, yes. For low-value orders your carrier already covers, usually not — which is exactly what carrier-first routing avoids.
What's the cheapest parcel insurance?
Rates run from ~0.6% (U-PIC) to ~2.5% (Route). But the cheapest option is often not insuring what the carrier already covers. See cheapest parcel insurance.
Compare providers: EasyPost vs InsureShield · Shipsurance alternatives