The company I worked for did the same, everything over $100 value we calculated the price shipped with insurance, charged the customer that then shipped without insurance. They tracked all of the shipments that went out like this with the amount the insurance cost and they found, when packaged correctly, they had very few claims and the money saved not insuring them FAR outweighed the cost to replace the items that were damaged.We spend over $800,000 a year with UPS... abpout 10 years ago we figured out we were paying over $40,000 for insurance and were claiming less than $10K.
We stopped using their insurance and "self insure" without all the hassles.