How Much Is UPS Insurance per $100? Declared Value Guide

UPS insurance is priced per $100 of declared value: every package includes $100 of UPS liability at no charge, and if you declare a higher value, UPS adds a declared value charge for each additional $100 (or part of $100), with a minimum charge on the first increment. The exact charge for each $100 of declared value is set in UPS’s current rates and changes each year, so check it for your package in a rate calculator before you ship.

Technically, UPS doesn’t sell insurance. Declared value raises UPS’s maximum liability under its tariff, up to $50,000 for most packages, and claims are paid under UPS’s terms, not an insurance policy.

How Is UPS Insurance Priced per $100?

UPS calculates the declared value charge in steps of $100 of value. Here’s how a declaration works out:

1. First $100 of liability: included with every package at no charge.
2. Above $100: UPS charges for each additional $100 of declared value, or any part of $100.
3. Minimum charge: the first paid increment carries a minimum charge, so even a small amount of extra coverage costs at least that minimum.

Because the charge is per $100, the cost of coverage rises steadily with the value you declare. The current amounts are published in UPS’s daily rates and change with each annual rate update. To see the declared value charge for your package next to the shipping charge, enter the value in the ParcelPath rate calculator.

How Much Coverage Does UPS Include for Free?

Every UPS package includes liability up to $100 at no extra charge. If you don’t declare a value, $100 is the most UPS will pay for loss or damage, even if the item was worth more.

That makes the $100 liability limit the main decision point. For an item worth $100 or less, extra coverage adds nothing. For anything worth more, the gap between the $100 liability limit and the real value is what you’d absorb if the package were lost. The UPS frequently asked questions guide covers other common liability questions.

What Is the Maximum Declared Value UPS Accepts?

UPS’s 2026 tariff sets the declared value limit at $50,000 on each package and $100,000 on each pallet. A narrow set of packages qualifies for an enhanced declared value limit of $70,000 on a single package, such as some domestic Next Day Air shipments tendered on a scheduled pickup.

Where you hand the package over matters too. Drop boxes won’t take a package valued over $500, and retail drop-off points can set their own value caps, so take high-value parcels to staff at The UPS Store or a UPS Customer Center.

Is UPS Declared Value the Same as Insurance?

No. Declared value raises the limit of UPS’s liability as a carrier; it is not an insurance policy. A claim is paid under UPS’s tariff, which means UPS reviews whether the loss or damage is covered and whether packaging met its standards.

Third-party shipping insurance is a separate policy, often with different exclusions and claims handling. UPS’s own affiliate, UPS Capital, offers coverage this way, and ParcelPath offers Shipsurance insurance when you buy USPS or UPS labels. Other carriers use similar declared value systems; the USPS shipping guide and FedEx shipping guide cover their versions.

What Does UPS Declared Value Not Cover?

Declaring a value doesn’t make every loss payable. Common reasons a claim is reduced or denied include:

• Prohibited or restricted contents: items UPS doesn’t accept, such as cash and other excluded articles listed in the tariff.
• Inadequate packaging: damage caused by packing that doesn’t meet UPS’s packaging guidelines.
• Perishables and temperature-sensitive goods: spoilage from delay is generally not covered.
• Over-declaration: UPS pays no more than the actual value or repair cost, whichever is less, even if you declared more.
• Value above the cap: packages worth more than the maximum declared value shouldn’t be shipped with UPS at all.

Read the tariff’s liability section before you ship fine art, collectibles or jewelry, which have special limits.

How Do You File a UPS Declared Value Claim?

File online through UPS’s claims page or by calling 1-800-PICK-UPS. Under the 2026 tariff, notice of a claim must reach UPS within 60 days of delivery, or within 60 days of the scheduled delivery date if the package never arrived. UPS treats claims that miss the window as waived.

• Keep the box, packing material and damaged item until the claim is resolved, since UPS may inspect them.
• Gather proof of value, such as an invoice or receipt, plus photos of the damage.
• Have the tracking number ready. Tracking history is your evidence of handoff and delivery attempts, and the overview of package tracking services explains what each record shows.

Coverage only starts once UPS actually has the package. If tracking shows UPS Voided Information Received, the label was cancelled before UPS took the package, so there is nothing to claim. After filing, follow progress with UPS claim tracking, and the UPS claims and support guide covers disputes and appeals.

When Is UPS Insurance Worth It?

Declare a value whenever the item is worth more than $100 and you couldn’t comfortably absorb the loss. Below $100 the included liability already covers it.

• Worth $100 or less: no declaration needed.
• Somewhat over $100: compare the minimum declared value charge with how much uncovered value you’re risking.
• High-value items: declare the full value, use a staffed drop-off, and consider a signature option so there’s proof of delivery.
• Frequent sellers: sellers who ship daily on marketplaces like Etsy or stores built on Shopify often compare per-package declared value with a third-party policy.

Coverage is only one part of the cost of a shipment. The UPS shipping cost breakdown shows where declared value sits among other charges, and UPS shipping rates by weight explains the base rate it’s added to.

Frequently Asked Questions

How much is UPS insurance per $100?

UPS bills its declared value charge in increments of $100 of declared value, counting any part of an increment as a full one, above the first $100 of liability, which is included on every package. The first paid increment has a minimum charge. The exact charge for each $100 of declared value is set in UPS’s current rates and changes yearly, so check it for your package in a rate calculator before shipping.

Does UPS automatically insure packages?

Every UPS package includes carrier liability up to $100 at no extra charge. That isn’t insurance, and if the contents are worth more, UPS won’t pay above $100 unless you declared a higher value when creating the label. Declared value can be raised to $50,000 for most packages, with a charge for each additional $100 of declared value.

What is the maximum UPS insurance coverage?

UPS’s 2026 tariff allows a declared value of up to $50,000 on each package and $100,000 on each pallet. Some packages qualify for an enhanced $70,000 declared value limit under specific service and pickup conditions. UPS Drop Boxes won’t accept packages valued over $500, so take high-value packages to a staffed UPS location instead.

How long do I have to file a UPS insurance claim?

Under UPS’s 2026 tariff, notice of loss or damage must reach UPS within 60 days of delivery, or within 60 days of the scheduled delivery date for a package that never arrived. Claims that miss the deadline are treated as waived. File online or by phone and keep the packaging and proof of value.

Sources

• 2026 UPS Tariff/Terms and Conditions of Service (United States), ups.com
• 2026 UPS Tariff: Claims and Legal Actions, ups.com
• File a Claim, ups.com

Part of our UPS Claims and Support guide. Related: UPS Shipping, UPS Claim Tracking, UPS Claims Forms.