Extra cost of USPS insurance Question

[lanight_3]

I sold an item at $200.  USPS includes $100 free insurance for priority mail if purchased through eBay.  Why then, if you want to purchase insurance up to the value of the item, you have to pay full price and not get the benefit of the free $100 value anymore.  Why isn't the cost the difference between the $100 and the $200.  On the USPS website, insurance up to $100 is $2.85.  Insurance with an item valued between $100.01 and $200 is $3.55.  Shouldn't the additional cost be $3.55 - $2.85 = 0.70.  It's like they are punishing you for selling an item over $100. 

And if USPS through eBay gives the free insurance up to $100, who pockets the $2.85 if you pay for more? 

[johnrj1226]

The standard insurance for USPS Priority Mail is $50.00 (whether you buy thru eBay or otherwise) not $100.

  Sellers have to qualify for the $100 coverage  and buy the label thru eBay- see below.

"USPS Priority Mail automatically covers packages that are damaged or lost up to a value of $50 for all eBay sellers.

Top Rated sellers, as well as sellers with at least 300 transactions during the previous month, will receive $100 of insurance coverage with each USPS Priority Mail purchased using eBay labels."

[lja440]

Take advantage of the included insurance be that at the $50 or $100 level. Then self insure for the rest. 

I pretty much always self insure, calculating 3-5% of the trending price and dropping that into my risk fund (aka coffee can on top of my roll top desk). A few cents or a dollar or two is not missed from my wallet and as I have very few returns and have yet in 16 years gotten an INR or SNAD over time this really adds up. This is money that I retain that if I had purchased carrier or third party insurance would be long gone.

[nobody*s_perfect]

As noted in another post, only Top Rated Sellers (and some high-volume sellers) get $100 of insurance coverage with Priority Mail postage that they purchase through eBay. Everybody else gets $50.

It's a moot point in this case, because if you want more coverage than the included coverage, you must pay for the whole amount. If you want $200 of coverage, then you have to purchase $200 of coverage.

I agree with the poster who advised you to not purchase   insurance, but to "self insure" for the excess value above the included insurance.

[toysaver]

Is the item fragile, liable to break if not packed properly? Double boxing is recommended.  If I have an expensive item that's not fragile I add a signature required instead.  

[queenbuttercup]

Not sure why USPS doesn't make customers pay just for the extra insurance. 

I use Shipsurance to insure all of my packages. It is cheaper and easier to get claims processed. I have never had an issue getting paid for a claim with USPS, but I've seen in this forum it has become more difficult to get damage claims processed. Especially if the buyer is uncooperative. 

Self insurance is also an option, but you have to be willing to accept that risk.