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Question: Is it necessary to purchase postal insurance with Registered Mail?
Coinhusker1
Posts: 3,560 ✭
When I send a Registered Mail package, I previously thought that postal insurance was included in the cost -- that is, it is not optional.
Recently, a postal clerk informed me that it is optional, and probably a waste of money. I bought the insurance anyway, my thought being if, for example, an "inside job" of coin submission theft occurred at the Newport Beach or Sarasota post office, I would be SOL if my package was not insured. I would think the only instance you would decline postal insurance is if the package were insured by a private company.
Any feedback clarifying this would be appreciated.
Recently, a postal clerk informed me that it is optional, and probably a waste of money. I bought the insurance anyway, my thought being if, for example, an "inside job" of coin submission theft occurred at the Newport Beach or Sarasota post office, I would be SOL if my package was not insured. I would think the only instance you would decline postal insurance is if the package were insured by a private company.
Any feedback clarifying this would be appreciated.
0
Comments
Yes, it is very unlikely that an insured piece will get lost, but hey, anything can happen, and yes, losses HAVE happened.
Jeremy
David
So, what insurance am I buying when I send Registered Mail and insure it for let's say....$3K?
Do I not really need to purchase this?
I always purchase the xtra insurance!
Brian
<< <i>Registered mail comes with free insurance >>
No it does not. You might be thinking of express mail which I think is insured to $500. While it is rare for a registered package to turn up lost or stolen, it does happen. Insurance on registered mail is very cheap due to the high security. Better to have it and not need it than to need it and not have it.
rainbowroosie April 1, 2003
FHG, where are you? You shud try sending a package worth $26K.
If somebody knows please post it.
As far as Express mail as someone said is automatically insured for 500.00.... I believe it is 100.00. Matter fact I'm sure of it.
I think yer right; maybe it used to be $500.
Pay for insurance on anything of high value you send via registered. The odds of loss are minimal but missing/lost registered has been known to happen.
KJ
Yeah the mail truck COULD be in an accident & crash & burn.
And yes, like stman said, Express Mail is automatically insured for $100.
One thing I never understood is the fees for >$25K. They won't insure it for more than that, but they want you to pay more for the Registration fee.
Declared value without postal insurance Fee in addition to postage
$0.00
$7.50
Registered Mail Fee With Insurance
Declared value with postal insurance Fee in addition to postage
$0.01 to $100.00
$8.00
100.01 to 500.00
8.85
500.01 to 1,000.00
9.70
1,000.01 to 2,000.00
10.55
2,000.01 to 3,000.00
11.40
3,000.01 to 4,000.00
12.25
4,000.01 to 5,000.00
13.10
5,000.01 to 6,000.00
13.95
6,000.01 to 7,000.00
14.80
7,000.01 to 8,000.00
15.65
8,000.01 to 9,000.00
16.50
9,000.01 to 10,000.00
17.35
10,000.01 to 11,000.00
18.20
11,000.01 to 12,000.00
19.05
12,000.01 to 13,000.00
19.90
13,000.01 to 14,000.00
20.75
For higher values see the Domestic Rate Calculator or Domestic Mail Manual R900.20 on Postal Explorer.
<< <i>One thing I never understood is the fees for >$25K. They won't insure it for more than that, but they want you to pay more for the Registration fee. >>
As I explained in the past the extra fee is for extra security. For a $75K coin it is pretty tough to send it in 3 packages. So for an extra fee they will give it extra security such as tailing the delivery vehicle in an unmarked car if necessary. Basically they are guaranteeing delivery.
Declare Value with Postal Insurance Fee in Addition to Postage
$0.00
$7.50
0.01 to 100.00
8.00
100.01 to 500.00
8.85
500.01 to 1,000.00
9.70
1,000.01 to 2,000.00
10.55
2,000.01 to 3,000.00
11.40
3,000.01 to 4,000.00
12.25
4,000.01 to 5,000.00
13.10
5,000.01 to 6,000.00
13.95
6,000.01 to 7,000.00
14.80
7,000.01 to 8,000.00
15.65
8,000.01 to 9,000.00
16.50
9,000.01 to 10,000.00
17.35
10,000.01 to 25,000.00
17.35 plus 85 cents extra for every $1,000 or fraction over 10,000.
BTW, the maximum payout on a claim is $25k regardless of how much you insure it for.
Perhaps the following may be useful.
The main USPS - Rates & Fees web page with links to all the various costs:
http://www.usps.com/all/ratesandfees/welcome.htm
The USPS - Registered Mail web page:
http://www.usps.com/send/waystosendmail/extraservices/registeredmailservice.htm
The detailed Features & Fees of Registered Mail:
http://www.usps.com/send/waystosendmail/extraservices/optionalserviceandfeaturefees.htm#RegisteredMail
Keith
<< <i>BTW, the maximum payout on a claim is $25k regardless of how much you insure it for. >>
A point to remember. If you send a package with a value of MORE than $25K and DO NOT declare the extra value and pay the extra fee AND the package gets LOST you will be SOL and get nothing. Your claim will be denied on the basis that had they KNOWN the true value they would have handled it differently. I was told this by the person in charge of registered mail at the local P.O. who said that in over 25 years on the job that he has never had a package get lost or fail to be delivered.
There is a sign, over the counter, in our PO. It shows the various services. Next to registered it says "includes insurance."
I have had a talk with all of the clerks over that sign. It bothers me that some people are given the impression that you do have some insurance with the registration fee. NOT!
<< <i>Well you should come to my P.O. registered mail is $9.95 and they always insure it too for same >>
Registered mail is not one price it depends on weight and amount of insurance wanted
My Complete PROOF Lincoln Cent with Major Varieties(1909-2015)Set Registry
Registered mail can be used to send things that are important not to get lost, yet still have no value (documents for example)
So insurance is optional (and extra)
My posts viewed
since 8/1/6
Time to update this thread on registered mail and insurance. It appears from postal form 3806 that up to $50,000 coverage is included if you declare actual value. For about a $22 registered fee for a $4,000 coin, this is much cheaper than buying $4,000 of postal insurance on a non-registered, priority mail package. Any differing opinions?
He who knows he has enough is rich.
Something doesn't compute. I mailed a $20k parcel via Registered a few months back and the cost was about $50. I doubt there were $28 in fees outside of the fee for Registration (which you surmise includes the cost of insurance).
I think there is going to be lots of confusion in this thread by folks who don't realize a 15-year dormant thread was pulled to the top...
In honor of the memory of Cpl. Michael E. Thompson
Believe it or not, if you search Google for "Do you need to buy insurance for registered mail", this thread is the 6th result. So might as well set it straight.
I priced out Priority Mail small box ($8.50) and insurance coverage for $3,950 which came to $57.15. Total cost $65.45.
I also priced Priority mail small box ($8.50) and registered mail. declared full value. Registered cost is $22.05. Total cost is $30.35.
Form 3806 for registered mail states that "Domestic insurance up to $50,000 is included based upon the declared value."
I just wanted to make sure I'm not missing something.
He who knows he has enough is rich.
Copied directly from USPS Domestic Mail Manual:
2.2.1 Declaring Full Value
The mailer must always declare the item’s full value (see chart below) to the USPS (by stating it to the USPS clerk or entering it on the firm sheet if a firm mailer) when presenting it for registration and mailing. Private insurance carried on Registered Mail does not modify the requirements for declaring the full value. The accepting USPS employee may ask the mailer to show that the full value of the matter presented is declared, and may refuse to accept the matter as Registered Mail if a satisfactory declaration of value is not provided. Only articles of no value may be mailed as Registered Mail without insurance.
Registered mail PS Form 3806 was revised in 2015 and since this thread began. Insurance is no longer optional, it is included in the price for the declared value on the form. The higher the declared value the more the postage will cost. I find that any insured value of $800 or more is cheaper if sent registered. Sent one this morning, Registered First Class (under the weight limit that requires the registered priority rate) with electronic return receipt. Declared (insured) value was 2,280.00. Total shipping cost was 27.40. I do however always specify "registered first class, insured, electronic return receipt" to make sure the clerk is aware that I have declared a value on the form and inputs into his computer. Your receipt will show the declared/insured value if the clerk correctly did his job.
I remind all that registered is the only class of mail that will pay insured value if there is a claim for loss of bullion. File a claim for a loss of bullion sent with any other class of mail and your reimbursement is capped at $15.
No Way Out: Stimulus and Money Printing Are the Only Path Left
Thanks for the clarification. The way @philographer worded his post from earlier today made it sound (to me) like insurance (up to $50k) was now included in the (flat) Registration fee.
It is but only up to the value declared on the form not to exceed $50K. Registered fee is not a flat fee, it is based on the declared (automatically insured) value. The higher the declared value, the higher the fee (postage) will be. There is a flat fee (either first class or priority) that is added to the registered fee to give you a total mailing fee.
Note that while insurance isn't actually optional with registered mail, one can declare a zero contents value to get the cheapest registered rate that would include no insurance.
No Way Out: Stimulus and Money Printing Are the Only Path Left
This seems quite clear:
The mailer must always declare the item’s full value to the USPS when presenting it for registration and mailing. Only articles of no value may be mailed as Registered Mail without insurance.
Of course, that doesn't mean people won't try to declare a value of $0.00 in order to get a cheaper rate anyway. But then again, if a seller is willing to misrepresent his shipment to the post office to save a little money on postage, what else might he be willing to do in order to get a couple of extra bucks out of you?
You make it sound as if postal insurance should be mandatory. If someone declares a valuable item as worth $0 on the form, they have no recourse for compensation in the event of loss or damage. It's not like they are pulling a scam on the USPS.
Those with third party insurance do not need to buy additional usps insurance for their registered shipments.
No Way Out: Stimulus and Money Printing Are the Only Path Left
What I think "should be" is irrelevant. The post office says that insurance is mandatory for anything that has value.
The post office disagrees with you:
The mailer must always declare the item’s full value to the USPS when presenting it for registration and mailing. Private insurance carried on Registered Mail does not modify the requirements for declaring the full value.
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double post
No Way Out: Stimulus and Money Printing Are the Only Path Left
No Way Out: Stimulus and Money Printing Are the Only Path Left
You really should read what I copied from the USPS DMM:
" The accepting USPS employee may ask the mailer to show that the full value of the matter presented is declared, and may refuse to accept the matter as Registered Mail if a satisfactory declaration of value is not provided."
I'm talking about what the rule IS, not about what third party insurers say to do or how you imagine things should be. So- no. USPS rule is that they determine whether or not the full value is properly declared, not the shipper.
"The accepting USPS employee may ask the mailer to show that the full value of the matter presented is declared, and may refuse to accept the matter as Registered Mail if a satisfactory declaration of value is not provided."
And it is declared on postal Form 3806 by the person presenting the SEALED package. The clerk will ensure that a value is entered on the form. Clerks are not tasked with determining value nor or they qualified to do so. They are not authorized to open the package unless it is media mail or they are a postal inspector. They are tasked with making sure a dollar amount is entered on the form because they need it to proceed with determining the postage.
$0.00 is a dollar amount, I declare it a few times a month. Note the postal rule does not say "actual value."
No one is questioning the "rule." I am however questioning your ability to accept reality. Or maybe you just like to argue because you have nothing better to do. I on the other hand do have better things to do so I'll leave you to argue with yourself while those who use registered mail and third party insurance chuckle at your determination.
No Way Out: Stimulus and Money Printing Are the Only Path Left
No, it doesn't say "actual value", I never said it did. It does says "full value", however.
Of course, if $0.00 is the value of the package, there'd be no need for third party insurance, would there? Which leads to the conclusion that someone who uses third party insurance for his shipment and claims a value of $0.00 is lying to the post office. But I guess trusting people to do the right thing is something to chuckle at. Pity.
And who do you think determines full value, the postal clerk or the person submitting the item for shipment?
I consider it as not being forced by USPS to buy insurance that I don't need. Probably not even legal for them to do so.
However, as soon as I get out of jail for using a paypal a fee free payment, I've got a reservation at ebay jail for earning bonus bux on a bullion coin. When I'm all caught up I'll turn myself in to the post office. By then they might even have me on one of their posters.
Admit it, you just like to argue. lol
No Way Out: Stimulus and Money Printing Are the Only Path Left
what you "declare" the value to be on the postal form will be the amount of insurance coverage on the shipment. The more you declare, the more the postage will cost.
Regardless of all the jiving and shucking above, the sender determines and declares what the full value is to him and to him alone. The postal clerk's job is to ensure you include a declared value on the form and to price your postage accordingly.
No Way Out: Stimulus and Money Printing Are the Only Path Left
@derryb.... Thanks for the explanation.... I will be shipping some pieces of value in the near future - registered. This makes it quite clear. Cheers, RickO
USPS's policy is perfectly clear to anybody who is willing to read it. I wonder why some feel the need to torture the meaning of the words in order to obtain their desired outcome. Is saving a couple of bucks worth compromising your integrity? I guess for some people, the answer is "Yes".