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Shipping guitars - FedEx caps insurance at $500???

jpage

Senior Member
Messages
9,249
Couldn't believe this--guy at FedEx claimed that guitars were the companies' #1 claim item by a mile and they recently put a policy in place that capped the declared value at $500. The guy also told me all of the other guys were doing the same...wtf?
 

DCAddy

Member
Messages
3,075
I heard this, too. It sucks for me, because I use Fed Ex exclusively, and rarely ship guitars that are under $1000.

Some folks need to brush up on their packing skills, I think. In the past year alone, I've had two high end axes shipped to me, cases flopping aroung in the freaking box, nothing in the case for support, etc...
 

jpage

Senior Member
Messages
9,249
With all the buying and selling that takes place I am astounded that this isn't a huge deal here...especially if the guy was correct and UPS is following suit.
 

ixnay

Member
Messages
4,149
I just looked up their policy online and the only mention of guitars is guitars more than 20 years old are limited to a maximum declared value of $1000. No other mention of any limits otherwise...

I heard a similar rumor many months ago and found the same results. I also contacted FedEx to verify what I had found, and although it took way more effort than it should have, they did verify that was the only limitation at that time.

If anything has changed recently, I couldn't find anything official to verify it.
 

DCAddy

Member
Messages
3,075
About three months ago, I shipped a 335, insured @ $1900. Gwen, the lady behind the counter at the Fed Ex hub where I ship, told me about an imminent cap of "well below $1000". Could be just hearsay, but she usually knows her stuff on such matters... Nothing about age was mentioned...
 

Jon C

Gold Supporting Member
Messages
17,502
another advantage of a musical instrument policy (e.g. Heritage), it will cover shipping damage.
 

esoteric pete

Member
Messages
6,859
that would make NO sense what-so-ever if this was actually true.

maybe these companies should consider handling things with more care if they are noticing a spike in claims.

or not.
 

Guitarworks

Member
Messages
10,660
OK, so what's going to happen every time UPS or Fedex snaps the headstock on a brand new $2500 guitar that was just sent out by MF, GC, or some other online retailer? The retailer is going to eat $2000 every time that happens? Never. Not even once. Whether guitars have the highest number of claims or not, there's no way $500 is going to get a carrier off the hook when they crush a 4-figure guitar.
 

jetydosa

Gold Supporting Member
Messages
3,907
OK, so what's going to happen every time UPS or Fedex snaps the headstock on a brand new $2500 guitar that was just sent out by MF, GC, or some other online retailer? The retailer is going to eat $2000 every time that happens? Never. Not even once. Whether guitars have the highest number of claims or not, there's no way $500 is going to get a carrier off the hook when they crush a 4-figure guitar.
Or how will guitars even get to dealers from manufacturers? Something is not right here.
 

serial

Member
Messages
2,254
This has been FedEx policy for a while now-on vintage guitars tgecmax coverage was $500. Of course, they'd let you pay full freight to insure for whatever value. I found this out the hard way years ago and had to threaten a lawsuit (their policy violates the Carmack Amendment and insurance laws in some states). I eventually got paid, but I had to spend many months and much of my own time dealing with those idiots. I haven't used FedEx for almost ten years as a result and am amazed when people still ship older guitars using them. They break or lose a high percentage of stuff because they sub out so much.
 

ixnay

Member
Messages
4,149
Checked another FedEx--it is true.
Any links to this in writing? They have their policies/customer agreement posted online and there is no mention of limits, other than the $1000 limit on 20+ year old guitars.
 

Tim Plains

Senior Member
Messages
6,121
My guess (and this is only a guess) is they cover a maximum of $500, or whatever, if you don't buy additional insurance. Yes, it does suck, but honestly, I can't say that I blame them. They are a business. Bottom line is how much $$ can we generate.
 

jpage

Senior Member
Messages
9,249
My guess (and this is only a guess) is they cover a maximum of $500, or whatever, if you don't buy additional insurance. Yes, it does suck, but honestly, I can't say that I blame them. They are a business. Bottom line is how much $$ can we generate.
No--they will not pay any more than $500 on a used guitar no matter what you put down as a value. They seem to be instructed to suggest to customers when they ask about the new policy to "check your homeowner's insurance", because both FedEx employees told me the same thing.

This is a big deal for guys who buy and sell a lot of instruments.
 

jpage

Senior Member
Messages
9,249
Any links to this in writing? They have their policies/customer agreement posted online and there is no mention of limits, other than the $1000 limit on 20+ year old guitars.
I asked the second FedEx employee about this and she told me that "this policy is relatively new".
 

fritferret

Member
Messages
2,964
i just shipped an amp via fedex and insured it for 4000. i wonder why they would allow that, but not cover guitars for more.
 

tiktok

Silver Supporting Member
Messages
22,816
Because odds are, the amp will get there fine and then they can keep your extra insurance.
 

fishleehooker

Silver Supporting Member
Messages
7,291
In the past year alone, they have made about $1000 dollars off of insurance in my deals with them. I haven't had a claim, so that is pure profit, much like the insurance $ Enterprise and car companies make on top-that is where the $$$ is. Why wouldn't they just maximize their handling ability and/ or raise insurance rates? This will change things.
 

jpage

Senior Member
Messages
9,249
i just shipped an amp via fedex and insured it for 4000. i wonder why they would allow that, but not cover guitars for more.
The first guy told me that I was lucky he was honest--most stores have been keeping the policy under wraps and letting people pay for the insurance just to get a few bucks extra. Apparently they have no problem letting you PAY for it--they just won't honor it. Not sure about amps though.
 




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