Most people who are into shipping goods usually do it through FedEx. During the shipment, some products may not arrive at their delivery points in perfect shape. Here, FedEx provides insurance cover.
However, FedEx over the cause of time has made some changes to its insurance rates for shipping goods.
Meanwhile, FedEx and other shipping companies, offer this declared value coverage. You can only get this offer if the carrier is responsible for any damage that occurs to your package.
To get this insurance cover, you will need to understand how it works and the new rates involved. This is because not many persons are aware that there have been some changes to the previous rates.
This article will explain in detail how FedEx insurance works, what it covers, and the current rates for shipment.
About FedEx Insurance
FedEx offers an insurance cover if the company is responsible for any damage done to any package on shipment. The damage can occur from stealing, misplacement, or total damage to the parcel.
If this happens, the shipper can lodge a complaint to the company so as to recover up to $100 in value.
Whenever the value of the parcel you want to ship is over $100, you will have to obtain extra insurance by declaring the worth of your package.
Below are the previous shipment insurance rates:
- FedEx Ground charges $1 for every $100 of declared value for shipments worth over $300.
- FedEx U.S. Express charges $3 for coverage of shipments with declared values ranging from $100 to $300. For parcels that are more than $300, the coverage is $1 for every additional $100 in value.
- FedEx International Express charges $1 for every $100 of declared value for shipments worth more than $100. (Coverage of a parcel with a declared value of $250 cost $2).
Once you declare the value of a parcel for shipment and any damage happens to it, FedEx will pay you the value of the parcel if you file a claim.
In filling the claims form, you will have to get the receipt for the goods and the proof of loss (such as an invoice showing that FedEx shipped the parcel).
You have only but sixty (60) days to fill the FedEx Express claims form. For FedEx Ground claims form, you will have to fill it within 60 days if the parcel is lost and nine (9) months if it is damaged.
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How does FedEx Shipping Insurance work?
Like FedEx, most third-party shipping companies always add a declared value coverage in their shipping contracts. In other words, the declared value coverage is the maximum amount of money that the shipping company will pay the shipper if they are responsible for any damage that occurs to the parcel.
For FedEx, their declared value coverage is $100. If the worth of the parcel you want to ship is above $100, you will have to purchase additional coverage for that parcel.
FedEx’s declared value always sets the maximum liability claim for any damage or loss that may happen to any package. Whenever shippers pay for additional coverage, it always increases FedEx’s financial liability.
With the purchase of the additional coverage, shippers can recover more of the cost of their parcels once they show evidence of value and proof that FedEx was responsible for the shipment.
However, shippers cannot get the declared value coverage if the parcel misplaces or damages while being delivered at the doorstep of the receiver.
NOTE: For shippers, the declared value coverage is not the same thing as insurance.
What does the insurance cover?
Like we said earlier, FedEx declared value coverage offers payment to shippers for any parcel that gets missing or damaged.
If your parcel is worth up to $100, FedEx offers insurance for it. For parcels that are worth over $100, you must declare their value and pay for additional coverage before FedEx ships it. If the declared value of your parcel is more than $500, you must provide your signature to FedEx.
On the other hand, FedEx shipping insurance does not protect goods from any damage resulting from fire or natural disasters. The insurance does not cover goods that get missing or damaged upon arrival at the receiver’s doorstep. If you ever experience this situation and you need coverage, you will need a third-party insurance policy.
What are the shipping rate changes to the FedEx insurance?
There has been a lot of changes to FedEx shipping insurance rates. The previous insurance rates that FedEx charges shippers no longer apply.
Starting from January 2022, FedEx will charge a 6% late fee to U.S. FedEx Express and FedEx Ground customers who do not pay their invoice in line with their agreed terms for payment.
From the 4th of January 2022, the rates for FedEx Express, FedEx Ground, FedEx Home Delivery, FedEx SmartPost, and FedEx Freight will increase. There will be changes to shipping surcharges and fees that may apply to your shipment and affect your total shipping rate. Click here to see the changes in the surcharge fee.
From the 18th of January 2022:
- There will be changes to how Additional Handling Surcharge is assessed for FedEx Express and FedEx Ground packages.
- FedEx Freight will introduce a High-Cost Service Area Surcharge that applies to certain shipments.
- Certain U.S. locations will be assessed as an International Out-of-Delivery-Area Surcharge or an International Out-of-Pickup-Area Surcharge for FedEx International Express Freight® services. Click here to see more details on this.
From February 1, 2022; how fuel is accessed will change for U.S FedEx Express Freight shipments. Click here to see more details.
FedEx Express and FedEx Ground Rates
From January 4, 2022:
- There will be a 4.9% average increase of FedEx Express package and freight standard list rates for the U.S., U.S. export, and U.S. import services. The 4.9% increase will also affect FedEx Ground and FedEx Home Delivery standard list rates. Click here to download the rates.
- FedEx SmartPost, FedEx Ground Multiweight, and FedEx International Premium rates will increase. There will also be an increase in the minimum rates for FedEx Express services.
- There will be changes in Service Guiding Pricing for FedEx One Rate.
- FedEx Retail Rates will change.
FedEx Freight Rates
From January 4, 2022:
- FedEx Freight rates will increase an average of 5.9%, applicable to the FXF 1000, FXF 501, Offshore (includes FXF 300, FXF 303, FXF 352, and FXF 370 series) and Commodity rates. See the changes in the optional and additional service charges. There will be an average increase of 4.9% in FXF PZONE and FXF EZONE rates.
- FedEx Freight rates will also increase for FXFC 1100 (Intra Canada) rates, FXFM DD (Mexico Door-to-Door) rates, and FXFM IMS (Intra Mexico Shipment) rates.
- The rates for the FedEx Freight box will not increase.
FedEx offers insurance cover for parcels that are worth $100. If the value of the parcel is worth more than $100, you will have to declare its value and pay for additional coverage before FedEx ships it. All these are the previous FedEx insurance rates.
If you wish to ship any parcel via FedEx, it is important that you get to know about the new changes in their shipping insurance rates so that you keep enough budget.