I believe all the major shipping companies have serious insurance policies. Go for the UPS. If you have problems, they'll handle it. The worst that could happen would be a delay of a couple of weeks, and IMO it's not worth $220 to insure that that doesn't happen.
I actually disagree. Survey was done a few years ago and found that FEDEX and USPS did a better job of protecting electronics shipments than UPS. I don't think it's a big deal, but if I have the option at a competitive price I usually choose a non-UPS method.
But that's only with small cost differences. Sounds like I would use UPS in your case.
Plus, if anything doesn't make it to you in good shape, Newegg will surely help you out in dealing with UPS. I buy almost everything computer related from Amazon or Newegg, and both ship via UPS. As long as it's packaged properly (which they are, retail) it'll get to you fine.
The major reason for the price difference is due to a contract between Newegg and UPS that fedex doesn't have, the reason fedex is listed there is because some people that have issues with their local UPS office or some other personal issue with UPS. With me it doesn't really matter either way as both give good service where I live, but I know some people that have issues with them where they live.
caqde is absolutely correct. I worked for UPS for 15 years, and they do have a contract. A long time ago newegg stuff used to come fedex sometimes. When your stuff comes, take all the boxes just as they came to you, back to UPS, and see how much it would cost you to ship them all back to newegg. I'll bet it would be $70.00 or more..they get quite a discount over the base rate