Have you ever watched the luggage carousel spin… and spin… and spin… only to realize your bag isn’t coming out? It’s every traveler’s nightmare.
Lost luggage comes with a cost — and not just what you pay to replace your bag. Often, you need to replace the items inside the luggage.
If your bag is declared lost, you’re entitled to some compensation from the airline, under a rule by the Department of Transporation (DOT). But if you have travel insurance, your possessions will have even more protection.
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What’s Included in Lost Luggage Coverage
Lost luggage coverage is designed to help you receive compensation if your bags are missing, stolen, delayed, or damaged.
- Coverage for missing or stolen bags: If your checked or carry-on luggage is permanently missing due to loss or theft, you can get reimbursed for the value of the bags. You might also receive compensation for items in the luggage that you need to replace.
- Compensation for delayed baggage: Even if your luggage isn’t lost, delayed bags can result in costs. For example, you might need to purchase new clothes or toiletries while you wait. In that case, you can get reimbursed for these items.
- Partial coverage for damaged luggage: If the airline damages your bags, you might receive reimbursement to help you purchase new luggage or get your current luggage repaired.
Coverage Limits and Exclusions
While travel insurance can help you get reimbursed for lost, damaged, or delayed bags, there are limitations.
- Many baggage policies won’t pay a claim if you leave your luggage unattended and it's stolen.
- If there’s prior damage to your luggage, you might not receive reimbursement for replacement or repair.
- High-value items like jewelry, electronics, and specialty equipment might not be included in base coverage. For example, if you pack jewelry and your luggage is lost, the insurance might not cover that item. You might need to buy additional coverage. Some airlines also offer additional insurance.
Maximum reimbursement amounts
Typically, lost baggage coverage comes with caps of between $500 and $2,000. Your limit depends on the travel plan you choose.
Additionally, there are usually per-item caps as well as total caps. For example, you might have a policy that reimburses you for up to $1,000 per incident but $500 per item.
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How To File a Claim for Lost Luggage
If your luggage is lost, you need to follow certain steps to increase the chances of being reimbursed quickly. Here’s what to do:
1. Notify the airline or authorities
The DOT requires airlines to reimburse you up to $4,700 for luggage and contents lost on their watch.
Check with the airline’s customer service to learn how to file a claim. Pay attention to time limits when filing and make sure you’re within the timeline.
If your luggage wasn’t lost by the airline but rather stolen after you got to your destination, file a report with the appropriate local authorities.
2. Document your claim
You need the right paper trail. Keep receipts to show what you had to buy to replace necessities in your luggage.
The airline should also provide updates and reports related to your lost or delayed luggage, so keep that handy.
Pro Tip: Take a photo of your luggage before you check it, so that if it ends up damaged, you have proof of its previous state for both the airline and your insurer.
3. Contact your insurer
Check your insurance policy to see how to file your claim. If anything is unclear, contact the customer service team so you don’t miss the timeline or forget anything.
You’ll likely have to submit receipts for items you bought, as well as proof from the airline that your bag was delayed or lost, or photos showing how it was damaged.
Tips to Maximize Your Baggage Coverage
To get the most out of your baggage coverage, understand your policies and what’s available under federal travel regulations.
Combine travel insurance and airline compensation
Airlines are required to reimburse up to $4,700 for lost or damaged luggage and contents.
In many cases, you turn to the airlines first, and then if you’re limited by the airline, travel insurance can cover the rest.
Use credit card benefits
Many credit cards offer lost baggage protection, so if you bought your airline tickets with a credit card, you might have additional protection.
For example, the Chase Sapphire Preferred® Card will reimburse you up to $3,000 per passenger if your luggage is lost by the airline, or up to $100 per day (for up to five days) when your baggage is delayed by at least six hours.
The credit card company might require you to file an insurance claim first, but the benefits can cover your costs once your limits are reached.
Pack smarter to reduce risk
In some cases, packing can make a difference. Spread valuables and essentials across bags so that if one is lost, you don’t lose everything.
Also, know that if you don’t pack carefully and items are broken, the airlines and insurers might not reimburse you.
RELATED: How To Protect Family Valuables While Traveling
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FAQs About Lost Luggage Insurance
Does travel insurance cover items stolen from my carry-on bag?
Yes, if you took proper care to stow your bags and didn’t leave them unattended in the airport, you can usually receive coverage for items stolen from your carry-on bag.
What happens if the airline finds my bag after I’ve filed a claim?
Depending on the airline, you might not be reimbursed until after the bag was lost for 21 days. So, you might have filed a claim early on, but you might not be reimbursed yet.
In that case, your claim will likely be closed without reimbursement. If you’ve already been reimbursed, check whether you’re required to repay the reimbursed amount.
Are high-value items like cameras or laptops included in lost luggage coverage?
In many cases, high-value items aren’t included in basic travel insurance plans. Most coverage has caps, including per-item caps. You might need to purchase additional insurance to cover the value of expensive items.
TL;DR: Do You Need Luggage Insurance?
While airlines must provide some compensation for lost luggage, there are exclusions and limits, and you might not be able to recoup the entire amount.
Travel insurance or a good travel credit card can alleviate the financial and emotional toll of missing or damaged bags.
Make sure you understand your policy’s limits and exclusions, and document everything.
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Disclosure: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
