Postal Vehicles: Insured?

The United States Postal Service (USPS) is a federal government entity and is therefore not required to adhere to traditional auto insurance laws. Consequently, the USPS is self-insured, meaning it pays out of pocket for any damages that occur in a traffic accident if its employee is at fault. This self-insured status applies only to USPS-owned vehicles and not to employees using their personal vehicles for mail delivery. In such cases, employees are required to obtain specialty coverage, often referred to as rural carrier car insurance, as most USPS carriers who drive their own vehicles work in rural areas.

USPS insurance for personal vehicles

The USPS is a federal entity and is exempt from the vehicle insurance laws of each state. The United States Postal Service is self-insured and does not carry private insurance on any of its vehicles. The USPS self-insured status only applies to its cars and does not extend to employees who use their vehicles to deliver mail.

USPS coverage only protects agency-owned postal trucks. This means that if you are a USPS employee using your own car to make deliveries, you will need to get specialty coverage. This is because using your car for work purposes means your personal coverage is no longer sufficient. This type of insurance is known as rural carrier car insurance.

Rural carrier car insurance is essentially identical to commercial insurance coverage, but your premium payments may be lower because you work exclusively in a rural area. There are several insurance companies that offer specialty coverage for USPS employees, including GEICO and State Farm.

If you are a USPS employee and you get into an accident while driving your own vehicle, the legal process can be particularly complex. The USPS may still bear some liability, depending on the specific circumstances. Determining fault and the applicable auto insurance policy may require extensive investigation.

USPS insurance for rural carriers

The United States Postal Service (USPS) is a federal government entity and is therefore not required to adhere to traditional auto insurance laws. Instead, the USPS is self-insured, meaning it pays out of pocket for any damages that occur in a traffic crash if its employee is at fault. However, this self-insured status only applies to USPS-owned vehicles and does not extend to employees using their vehicles for mail delivery.

Rural carriers who drive their personal vehicles for work are advised to purchase specialty coverage or commercial insurance. The National Rural Letter Carrier Association (NRLCA) offers a Vehicle Insurance Plan tailored to route vehicle drivers. This plan is underwritten by National General, the only company endorsed by the NRLCA for over 65 years. The plan includes on-route and off-route protection and works with the Federal Tort Claims Act (FTCA) to provide coverage for rural carriers.

The FTCA is a federal statute that provides a government-administered protection plan for federal employees and the government authority if any of its employees or agents incur liability while performing their official duties. This includes protection against liability resulting from operating a motor vehicle within the scope of their official employment. However, it's important to note that the FTCA has limitations, such as being applicable only for on-route protection, and it does not cover damage to your vehicle.

USPS also offers paid driver training, which may qualify rural carriers for insurance discounts. Additionally, after one year of continuous service, rural carriers may have the opportunity to purchase group health insurance.

Insurance for Priority Mail Express

The United States Postal Service (USPS) is a federal government entity and is therefore not required to adhere to traditional auto insurance laws. The USPS is self-insured, meaning it pays out of pocket for any damages that occur in a traffic crash if its employee is at fault. However, this self-insured status only applies to USPS-owned vehicles and does not extend to employees using their vehicles for mail delivery.

USPS Priority Mail Express includes up to $100 of insurance coverage in the price. This insurance covers loss, damage, or missing contents. If the value of the shipment exceeds $100, you may purchase additional coverage. The cost of additional insurance depends on the declared value of the package. For example, the price for insurance for items valued between $50.01 and $100 is $2.80.

To file a claim with USPS, you must do so within 60 days of the mailing date. The process can be completed online and requires you to provide details about the package, the reason for the claim, proof of value, and evidence of insurance purchase. It is important to note that USPS does not keep records of insurance purchases, so you must keep your receipt.

Insurance for Registered Mail

The United States Postal Service (USPS) offers insurance for registered mail items of up to $50,000 at your Post Office location. The insurance fees are based on the item's declared value, starting at $2.75. This insurance provides peace of mind and protection for your valuable shipments.

To purchase insurance for registered mail, you can visit your local Post Office or use the services of your Rural Carrier. Regardless of how you purchase the insurance, you must present the registered mail items to a Postal employee for mailing. You will receive a mailing receipt, and upon request, electronic verification of delivery or delivery attempts.

The recipient of registered mail may be required to show an acceptable primary ID before the USPS will deliver the mailpiece. It is important to keep your postmarked mailing receipt and proof of value in case you need to file a claim. If your mail item is lost, you should file a claim no later than 60 days from the date of mailing. For damaged or missing contents, a claim must be filed immediately but no later than 60 days from the date of mailing.

USPS also offers other extra services for registered mail, such as Signature Confirmation, which adds security by requiring a signature. You can also request Return Receipts, which provide information on the date and time of delivery or delivery attempts, as well as the recipient's signature and address.

It is worth noting that the USPS itself is self-insured, meaning it covers damages out of pocket for any accidents involving their vehicles. However, this insurance does not extend to employees using their personal vehicles for mail delivery.

Insurance for Return Receipt

The United States Postal Service (USPS) offers a Return Receipt service that provides senders with proof of delivery. This service can be purchased for an additional fee and is available for mail sent via COD, Express Mail, Insured for more than $50, or Registered or Certified. The return receipt includes the date of delivery and the signature of the recipient.

The Return Receipt service can also be combined with other services to provide additional protection for valuable or important mail. For example, Registered Mail is the most secure option offered by USPS, providing tight security for mail from the point of mailing to the delivery office. Insurance of up to $25,000 can be purchased on domestic Registered Mail, while Registered Mail to Canada has a $1,000 indemnity limit, and the limit for all other foreign countries is $42.30.

For standard mail, Priority Mail, or First-Class Mail, insurance coverage of up to $5,000 can be purchased. For articles insured for more than $50, a receipt of delivery is signed by the recipient and filed at the delivery post office.

It is important to note that the insurance coverage for loss will only cover the actual value of the mail contents, less depreciation, and that packages should not be insured for more than their value.

USPS also offers Priority Mail Express and Priority Mail services, which include up to $100 of insurance in the price. For more valuable shipments, additional coverage is usually available.

In terms of vehicle insurance, USPS is a federal entity and is therefore exempt from state vehicle insurance laws. As such, USPS is self-insured and does not carry private insurance on its vehicles. This self-insured status only applies to USPS-owned vehicles and does not extend to employees using their vehicles for mail delivery.

Frequently asked questions