How to Report Fake Shipping Insurance or an Unwanted Shipping Protection Fee
Who to contact, what evidence to send, and a direct link to the insurance department in every state and DC.
Back to the resource centerKey takeaways
- Your state insurance department handles questions about who is licensed to sell insurance. Its complaint link is in the table below.
- Your state attorney general handles deceptive business practices, such as a fee you did not knowingly choose.
- The FTC collects reports for law enforcement but says it "can't resolve cases for individuals."
- Save screenshots of the checkout page, the terms, your receipt and every email before you report.
- If you want a refund, a card dispute is a separate step with its own deadline.
Who should you report fake shipping insurance to?
Pick the agencies that match what happened. You can report to more than one.
| Where to report | Best for | What to expect |
|---|---|---|
| State insurance department | Coverage sold as insurance or "protection" for lost, stolen or damaged packages; a denied claim; a seller you think may not be licensed | The NAIC says to "Start by contacting the department of insurance in your state to submit a formal complaint." Most take complaints online, by mail or by phone. |
| State attorney general | A fee added to your cart that you did not knowingly choose; misleading checkout wording | Find your AG through the National Association of Attorneys General directory. |
| FTC (ReportFraud.ftc.gov) | Fraud, scams and "bad business practices" | Reports go into a database shared with law enforcement. The FTC says it "can't resolve cases for individuals." |
| NAIC Online Fraud Reporting System | Suspected insurance fraud | Linked from the NAIC's complaint page. |
| Your card issuer | Getting a charge reversed | A written billing-error dispute has a 60-day window. See our refund guide. |
| CFPB | Your card issuer or bank mishandled your dispute | Online, or by phone at (855) 411-CFPB (2372). |
Can the insurance department help if the seller isn't licensed?
Sometimes not directly. Regulators have said so plainly in their consumer alerts about package protection:
“…your state's department of insurance (DOI) may not be able to help” (when the seller is not licensed).— NAIC consumer alert, July 18, 2024, content.naic.org
“Unauthorized insurance sales are illegal and happen outside the Department's purview.”— Utah Insurance Department consumer alert, March 20, 2024, insurance.utah.gov
That does not make a report pointless. The insurance department is the agency that looks at licensing questions. Utah's alert lists its Property & Casualty Division (801-957-9305) for questions about unauthorized insurance. Oklahoma's alert gives 800-522-0071 for reports. Just know that a complaint about an unlicensed seller may not end with the department ordering a payout.
Whether a product counts as insurance is decided by state law and regulators, based on what it does, not what it is called. You don't have to prove that. Describe what you were sold and let the department decide.
What evidence should you gather before you report?
The NAIC suggests having names, policy or order details, documents, records of communications and a factual account ready. For shipping protection, that means:
- Checkout screenshots. The cart or payment page showing the protection toggle or checkbox, its label and price, and whether it was already selected.
- The terms. Save the protection terms page as a PDF or screenshot. Make sure the URL and date show. Terms change, so capture them now.
- Receipt and order emails. The order confirmation that lists the fee as its own line.
- Card or bank statement. The line showing the charge and the posting date.
- Claim records. Your claim, the claim number, and any denial message with the stated reason.
- Delivery proof. Tracking history, photos of damage, or a carrier's "delivered" scan for a package you never got.
- The company name. Who runs the protection? Look in the widget, the terms and the claim emails. It may be the store, an app, or an insurance agency.
How do you write an effective complaint?
- Name everyone involved. The store, the protection provider (if different) and any insurer or agency named in the terms.
- Give dates and amounts. Order date, fee amount, claim date, denial date.
- Quote the wording. Copy what the checkout said (for example, "insurance") and what the terms say. Quotes are stronger than summaries.
- Stick to facts. Say what happened, not what you think the company intended.
- Say what you want. A refund of the fee, payment of the claim, or a review of whether the seller is licensed.
- Attach your evidence and keep copies of everything you send.
Where is my state's insurance department complaint page?
Each link goes to the department's complaint page where we could find one. Rows marked "Homepage" link to the department's main site because we could not confirm a specific complaint page. Deep links change often. If one breaks, use the NAIC state insurance department directory.
Frequently Asked Questions
Will reporting a shipping protection fee get me a refund?
Usually not by itself. The FTC says it uses reports to investigate but "can't resolve cases for individuals." To get money back, ask the merchant first, then dispute the charge with your card issuer within the billing-error deadline.
Should I report to my state insurance department or the attorney general?
It depends on the problem. If you were sold coverage for lost, stolen or damaged packages and it did not pay, or you question whether the seller is licensed, start with the insurance department. If a fee was added that you did not choose, or the checkout wording was misleading, the attorney general's consumer protection office is a good fit. You can contact both.
What if ReportFraud.ftc.gov is down?
If ReportFraud.ftc.gov is unavailable, report to your state insurance department and attorney general first, and save your evidence so you can file with the FTC once the site is back.
Do I need to prove the seller is unlicensed?
No. Describe what you bought, what the checkout and terms said, and what happened. Whether a product is insurance, and who must be licensed to sell it, is for the regulator to decide under state law.
Want coverage your customers can verify?
InsureShip is licensed by the California Department of Insurance, license #0G55434, and licensed in all 50 states. Established in 2012. Underwritten by Navigators, a Hartford company, rated A+ by AM Best (Navigators Insurance Company, as of 2024). Shoppers file claims online and InsureShip handles them. Merchants can see how it works before adding it to checkout.
Talk to InsureShipSources
Last checked October 8, 2026. General information, not legal advice. NAIC: How to file a complaint · NAIC consumer alert (Jul 18, 2024) · Utah Insurance Department alert (Mar 20, 2024) · Oklahoma Insurance Department alert (Nov 28, 2023) · FTC contact page · FTC: Reporting fraud 101 · ReportFraud.ftc.gov · NAIC Online Fraud Reporting System · NAAG: Find My AG · CFPB: Getting a refund on a credit card purchase · NAIC state insurance department directory · The Hartford: Navigators fact sheet (Apr 2025)
Written by Kyle Gibson, Compliance Auditor · Updated October 9, 2026