My one and only concern is that of the careful packing of your unit. All the insurance in the word will not replace your unit. Think you can get money from the insurance if your unit is damaged? You'd be lucky to get anything if your package is lost. If it's damaged and is insured, they will give you such a run-a-round that you'll pull your hair out and forget about it. Best to pack it right, so there won't be a need for insurance!
First things first: You'll need to find or purchase a box that allows AT LEAST 1" of extra room for the front, rear, and bottom of the unit. The top and both sides only require ½" of foam/ packing. Of course, more is always better - it all depends on the size of the box chosen. The box can be a single wall box, but must have a crush test value of at least 75lbs, but 200lbs or double walled boxes are always best if you can find them. A common size that works well for most VHS & DVD Combo units is either 20x14x6 or 20x18x6. Do remember that the larger the box, the higher the cost of shipping.
You can use kraft paper - but you have to remember that the VCR has some weight and during transit, the paper will crush and the VCR will be allowed to move around inside the box - which will then cause it to become damaged. Best to use either large bubble bubble wrap, or some type of foam. Air bags don't work well, because the corners of the machine will burst the bubble bags - and then the unit will be damaged - guaranteed. Don'e use air bags, unless they are tubular and thick. If you do use kraft paper, you have to seriously over-stuff the box, paying special attention to all 4 corners of the box, as this is the most common area that gets damaged - the corners of the unit.
A better way to pack that will take you some time is to head down to Lowes or Home Depot and they should have some boxes. While there, pickup a 4' x 8' sheet of exterior sheathing - it's white styrofoam, 1" thick, and has a thin aluminum film on one side and white plastic with writing on the other, the cost is about $30 or so for one sheet and it's light as a feather. This is the stuff you see on outsides of homes when being built - it’s called exterior sheathing. There are other types and colors of sheathing, but they are too stiff and will not absorb impacts like the sheet I’m describing.
You can cut the sheet to fit it in your back seat - AFTER you buy it, that is. Best knife to use is the Stanley Xtreme Snap-off Knife, which you can buy there as well for $15. I always use mine with the blade fully extended. It works the best to cut this stuff, period. You’ll need to line the bottom of the box with two inches of this styrofoam. BE SURE TO CUT HOLES FOR THE FEET because if the box is shoulder dropped by UPS (it's what they do...) the feet will be shoved up so far inside your unit that it will be damaged - permanently. Ask me how I know?? So, either cut holes for the feet, or just remove the feet altogether. I do not need them, keep them at home. I have plenty of feet that I use here for this very purpose. You only need 1 inch of styrofoam for the sides and top of the box. It will take some time to make the box and no doubt you’ll make a few mistakes. It’s well worth the time, trust me. Be sure that the unit will NOT move around inside the box, when shaken! Also, be sure to tape the box closed in a H pattern, both sides- cover all the seams and make sure to tape the BOTTOM of the box as well. Best to use three strips of tape to close the seam on the top and the bottom of the box. Now, if the bottom of the box is already taped - TAPE IT AGAIN – with three strips. All the insurance in the world will not replace this unit. Best to pack it well!
Shipping
As for choice of shipping carrier, it’s always best to use UPS. The mail (USPS) is getting more and more expensive, not to mention THE slowest service these days. If you do use USPS, do not fall for their ‘extras’ – tracking, special handling, etc. If you wish to purchase insurance, it would be best to use UPS, as regular UPS Ground comes with $100 of insurance, at no extra cost.
I recommend ShipStation. You'lll have to sign up, but they do not require a credit/ debit card. It's free for 30 days, so just cancel after you ship your package – or if you ship a bit each month, keep it for $10 a month. Heck, you'll save that amount each time you ship! - I kid you not. Once you create and then print the shipping label, just tape it to the outside of the box. You can then drop the box off at any Pack-n-Ship place or any CVS or even UPS Drop Off locations. They cannot charge you extra just because you used your own pre-paid label. Ask for the manager or blow them a raspberry and go somewhere's else.
I don't make anything from this referral - I'm just trying save you some hard earned cash.