How to self insure packages
MULLINS5
Posts: 4,517 ✭✭✭
There's been some discussion on USPS ripping people off, and how insurance can be a ripoff as well, so I just wanted to share what I do when I sell items online. I realize this isn't going to work with everyone, but it works out great for me.
I charge a small amount of money, which is built into the shipping cost of an item (about half the going rate of USPS insurance on that particular item). This money goes into a separate account through my bank monthly and I let it buildup until it's needed (if ever).
Since I started this about half-way through 2013 I've saved 1600 in my insurance account. Only if I sell something really, really big (that could bankrupt this account) will I actually buy the USPS insurance.
Anybody else do something like this?
I charge a small amount of money, which is built into the shipping cost of an item (about half the going rate of USPS insurance on that particular item). This money goes into a separate account through my bank monthly and I let it buildup until it's needed (if ever).
Since I started this about half-way through 2013 I've saved 1600 in my insurance account. Only if I sell something really, really big (that could bankrupt this account) will I actually buy the USPS insurance.
Anybody else do something like this?
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Comments
basically you just ship without insurance, anything ever breaks, gets lost or spoils we file a claim and get a check in about a week.
just guesstimating here, but it probably only runs 40% what the fedex insurance rate charges.
Very interesting concept. I absolutely love the discipline it takes to do that. It reminds me of our household budget. We do the envelope system for any expenses that are not monthly or weekly. It works out great because we always have the money for certain things and we dont have to worry about it. However, it takes discipline to put money in our envelopes every week.
Shane