Do You Need Parcel Insurance?
Most couriers include some cover for free. Here is what you get, when to upgrade, and when third-party insurance is the smarter move.
Quick Price Check
Enter your postcodes to see live prices from 20+ couriers.
Every major UK courier includes compensation cover as standard, but the limits vary wildly — and the conditions are often more restrictive than buyers realise. Before you pay for an insurance upgrade, check what you already have.
Default cover by courier
| Courier | Standard cover | Max upgrade | Upgrade cost (typical) |
|---|---|---|---|
| Royal Mail Tracked 24/48 | £150 | £150 | Not upgradable |
| Royal Mail Special Delivery | £750 | £2,500 | £3.00 |
| DPD | £50 | £2,500 | £3.50–£6.00 |
| Evri | £20 | £1,000 | £1.00–£5.00 |
| Yodel | £50 | £1,000 | £2.50–£5.00 |
| Parcelforce | £100 | £2,500 | £4.00 |
When it is worth upgrading
Upgrade cover when the replacement cost of the item exceeds the standard limit, and the premium is less than 3% of the item's value. Paying £3.50 to insure a £400 laptop is a no-brainer. Paying £5 to insure a £60 pair of trainers is wasted money.
How claims actually work
Every courier's claims process follows a similar pattern. You need proof of postage, proof of value (receipt or listing), evidence of the issue (damaged item photos, non-delivery confirmation) and you must submit within the claim window — usually 14–28 days from the dispatch date.
- Raise the issue via the courier tracking page.
- Wait 5–7 working days for the courier to investigate.
- Submit full claim documentation once the parcel is declared lost or damage is confirmed.
- Payout typically arrives 21–45 days after claim submission.
Claims are denied when the restricted items list is breached. This is the single biggest cause of failed claims. Phones, jewellery, collectibles, tickets and cash are commonly excluded or capped at tiny amounts regardless of the cover level you paid for.
Third-party alternatives
Services like Secursus and ParcelProtect offer independent parcel insurance that covers items couriers exclude. Premiums are typically 1–3% of declared value. For high-value electronics, collectibles or irregular items, third-party cover is often the only way to get real protection.
Household contents insurance sometimes extends to items in transit — check your policy's "personal possessions away from home" clause before paying for courier upgrades on personal sends.
Decision framework
- Under £20: standard cover is fine.
- £20–£100: check the courier's default — Royal Mail Tracked and DPD are usually adequate.
- £100–£500: upgrade courier insurance and check the restricted items list.
- Over £500: use Special Delivery for small items, or third-party cover for anything on the restricted list.
Compare couriers and factor the true cost of insurance into your decision.