ShipCover is a flat rate per $100. USPS is a stepped fee that changes at value boundaries.
The price side, at the values sellers actually ship
USPS Ground Advantage and Priority Mail both include $100 of coverage in the label price, so there is no out-of-pocket line on either provider under that. Above $100, the two providers price on different shapes: ShipCover is a per-$100 rate, USPS is a stepped tier that jumps at value boundaries.
| Declared value tier | ShipCover | USPS added fee |
|---|---|---|
| Up to $100 | Priced at eBay’s per-$100 rate | Included on Priority/Ground Advantage |
| Above $100 through $200 | Same per-$100 rate applied to declared value | $4.50 |
| Above $200 through $300 | Same per-$100 rate applied to declared value | $4.55 |
| Above $300 through $400 | Same per-$100 rate applied to declared value | $6.05 |
| Above $400 through $500 | Same per-$100 rate applied to declared value | $7.55 |
| Above $500 through $600 | Same per-$100 rate applied to declared value | $9.05 |
| Above $600 | Same per-$100 rate keeps stepping | Adds $1.50 per $100 of additional value |
The lines cross around the mid hundreds. USPS's stepped structure means a $500 tier is one flat fee, not five per-$100 units, and above $600 USPS charges $1.50 per additional $100. Under $200, USPS is cheaper for anyone on Priority Mail or Ground Advantage because coverage is bundled. Live per-$100 ShipCover rates show on the eBay label screen; USPS Notice 123 above is the source of the stepped USPS column.
The claim mechanics differ more than the price does
| Question | ShipCover (via PIP) | USPS insurance |
|---|---|---|
| Underwriter | Parcel Insurance Plan, underwritten by Arch Specialty Insurance | US Postal Service |
| Which carriers | USPS, UPS or FedEx labels bought through eBay | USPS labels only |
| Maximum coverage | $15,000 domestic, $10,000 international per parcel | $5,000 per package under DMM 503 |
| Damaged-item claim window opens | “At least 7 days after the date the transaction ends” | Immediately on delivery |
| Lost-item claim window opens | “At least 30 days after the estimated delivery date” | Typically 15 days for Ground Advantage/Priority Mail; longer for other classes |
| Who files | The seller initiates; the buyer may verify by email | Mailer or addressee |
The 30-day wait on ShipCover is the sharpest edge for a seller whose buyer wants a resolution now. USPS's 15-day mark on Priority Mail lets a case open two weeks earlier, and payment can flow before the ShipCover window even opens.
When each one wins on a typical eBay parcel
Under $100 on Priority or Ground Advantage
USPS is free at this tier because coverage is built into the label. Buying ShipCover here means paying eBay's per-$100 rate for something the Postal Service already covers. On a non-USPS label such as UPS or FedEx through eBay, ShipCover is the only route.
$100 to $500 on any USPS label
USPS wins on price by a few dollars because a stepped fee undercuts a per-$100 rate. It wins on time too, since the lost claim opens weeks earlier. A seller shipping under $500 on USPS labels rarely needs ShipCover.
Above $500, or on a UPS or FedEx label
Above $500 the numbers are close and the underwriter picture matters. ShipCover is the practical choice on UPS or FedEx labels bought through eBay because USPS insurance does not attach. On USPS labels well above $600, USPS's $1.50-per-$100 step is often cheapest again.
Two rules that catch first-time claimants
- USPS caps coverage at $5,000 per package. ShipCover caps at $15,000 domestic. A $6,000 collectible has no USPS path on a single parcel, and a seller who insures at $5,000 with USPS is uncovered above that.
- ShipCover excludes many categories (currency, jewellery over a stated limit, unmounted gems, electronics above a limit and more) that USPS accepts under its general terms. Read the eBay ShipCover exclusions before assuming a category is covered.
Where these rates and rules come from
- eBay, Shipping Insurance (ShipCover) — per-$100 rate, coverage caps, carriers, claim window, filer. Read 2026-08-11.
- USPS, Notice 123 Price List — insured mail fee schedule effective 2026-07-12. Read 2026-08-11.
- USPS, Insurance FAQ — included $100 on Ground Advantage and Priority Mail, $5,000 maximum coverage. Read 2026-08-11.
Common questions
Is ShipCover cheaper than USPS insurance?
Above roughly $200, ShipCover can undercut USPS on stepped tiers. USPS is a stepped fee that reaches $7.55 at $500. Below $100 USPS's built-in coverage on Ground Advantage and Priority Mail makes it the free option. The eBay label screen prints both live prices side by side, which is the reliable comparison.
Who underwrites ShipCover?
eBay names Parcel Insurance Plan (PIP), underwritten by Arch Specialty Insurance Company, as the ShipCover provider. USPS insurance is issued by the Postal Service itself under DMM 503.
Can ShipCover be used on a UPS or FedEx label?
Yes. ShipCover is offered on USPS, UPS and FedEx labels purchased through eBay. USPS insurance rides only on USPS labels because it is a Postal Service extra service.
How long is the ShipCover claim window?
eBay writes that a lost-item claim can be filed at least 30 days after the estimated delivery date and a damaged-item claim at least 7 days after the transaction ends. USPS lost claims open at 15 days for most services, and USPS damaged claims open on delivery.
Does the buyer or the seller file the ShipCover claim?
The seller initiates the claim with Parcel Insurance Plan; the buyer may need to verify the claim by responding to a PIP email. USPS accepts filings from the mailer or the addressee under Domestic Mail Manual 609.