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UPS provides all packages automatically with $100 worth of liability for loss or damage. A shipper can declare a higher value for the shipment with an additional charge. With this in mind, UPS specifically states that UPS declared value is not insurance.
What does UPS declared value cost?
As mentioned before, the first $100 of your UPS declared value is free of charge. But anything from $100.01 to $300 incurs a fee of $4.35. After $300, there is a $1.45 charge for each $100 worth of declared value.
Any declaration of value from $100.01 to $300 is subject to a cost of $3.90. Indications of value
over $300 incur a charge per $100 (or a portion of $100) of the total value declared. The calculation also includes the first $100. For example, a declaration of $1050 value incurs a charge of $12.30 (11 multiplied by $1.30).
| The declared value of the package | 2024 Cost |
| Value from $0 to $100 | Free |
| Value from $100.01 to $300 | $4.35 |
| Value over $300, charge for each $100 | $1.45 per $100 declared |
What is the maximum UPS declared value?
- $50,000 for a package shipped when a UPS account number is provided or from a UPS Store.
- $5,000 for a container using a payment card as the payment method via UPS Internet Shipping.
- $1,000 for packages returned via UPS Print Return Label, UPS Print and Mail Return Label, Electronic Return Label, or 1 UPS Pickup Attempt, Return Services, and UPS Returns on the Web.
- $1,000 for a package shipped via a third-party retailer.
- $500 for a package shipped at aUPS Drop Box.
- $500 for an international shipment containing jewelry.
- Additionally, shippers cannot declare a value for UPS Prepaid Letters.
- $999 for packages shipped usingShipper Release.
Page 171 of the UPS Tariff/Terms and Conditions of Service indicates that UPS does not offer insurance on any item with a declared value over $100, and insurance should be obtained elsewhere. Whenever a shipper declares less than $100 of value, UPS will pay out the lowest of $100, the declared value, the depreciated price of the item, or the repair cost.
UPS is not liable for loss or damage resulting from:
- Articles of Unusual Value
- Prepaid Letters
- Insects or vermin, deterioration, dampness of atmosphere, extreme temperature, ordinary wear
- Improper packaging
- Perishable Commodities
- Human remains
- Checks: UPS will not pay for the face value of the check
- Fluorescent tubes or bulbs
- Data stored on any media
- Acts of God, natural disasters, war risks, acts of terrorism, nuclear damage, acts of public authorities, riots, strikes, civil unrest, disruptions in air or ground transportation networks, or adverse weather conditions;
- Finally, any package or shipment without a scan
Declared value fees can truly add up without a shipper ever noticing, and small costs on each package can go unnoticed. In conclusion, if you are not sure how much you spend on these fees, you need to look at Refund Retriever’s full suite of reports and analytics.
This information highlights the areas our clients have problems with; therefore, refer to the UPS service guide for the complete list of limitations and exclusions. In conclusion, if you are interested in learning more about lowering your UPS declared value fees contact us at Refund Retriever.
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Author Brian Gibbs
Brian Gibbs | President of Refund Retriever
Brian Gibbs founded Refund Retriever in 2006 while running his first eBay-based business and seeing the shortcomings of other shipment auditing companies. Refund Retriever's primary focus is FedEx and UPS parcel invoice auditing. After graduating from Texas A&M University in 2001, he graduated from the University of Houston in 2004 with a JD and MBA. Gibbs has been featured in Forbes, Entrepreneur, and other publications discussing parcel auditing, shipping, e-commerce, and more. Learn more at www.refundretriever.com or call (800) 441-8085 for more information.
I'm Brian Gibbs, the President of Refund Retriever, and I've been deeply involved in the logistics and shipping industry for many years. My expertise in this field stems from founding Refund Retriever in 2006, a company focused on FedEx and UPS parcel invoice auditing. Over the years, I've gained firsthand experience and insights into the intricacies of shipping, declared values, and related cost structures.
Now, let's delve into the key concepts discussed in the article about UPS declared value:
UPS Declared Value Overview:
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Automatic Coverage:
- UPS provides automatic liability coverage of $100 for all packages against loss or damage.
-
Declared Value vs. Insurance:
- UPS declared value is not considered insurance, but shippers can declare a higher value for a shipment with an additional charge.
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Cost Structure:
- The first $100 of declared value is free.
- $4.35 fee for values from $100.01 to $300.
- $1.45 charge for each additional $100 (or portion) for values over $300.
- Example: A $1050 declaration incurs a $12.30 charge (11 multiplied by $1.45).
-
Maximum Declared Value:
- $50,000 for a package with a UPS account number or from a UPS Store.
- Varying limits for different scenarios, such as containers, returns, third-party retailers, international shipments, and UPS Drop Box.
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Insurance Limitation:
- UPS does not offer insurance on items with a declared value over $100.
- Shippers declaring less than $100 may receive the lowest of $100, declared value, depreciated item price, or repair cost.
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Exclusions from Liability:
- UPS is not liable for various factors, including articles of unusual value, prepaid letters, insects, improper packaging, perishable commodities, and more.
-
Declared Value Fees:
- Fees can accumulate, and shippers are advised to be aware of costs associated with declared value.
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Refund Retriever's Perspective:
- The article suggests referring to Refund Retriever's suite of reports and analytics for a comprehensive understanding of declared value fees.
In conclusion, understanding UPS declared value is crucial for shippers to manage costs effectively. For more in-depth information or assistance in lowering declared value fees, the article recommends contacting Refund Retriever.
For further details or questions, feel free to ask.
