Baggage Insurance

It rarely happens, but the airlines have been known to lose their passengers’ luggage. When this occurs, it starts a highly anticipated vacation off badly. In some cases, the luggage will arrive on the next flight. In other cases, the baggage is lost for good or is damaged. The items inside may also be damaged, but the airlines’ remedy may be less than satisfying for most people.

The Office of Aviation Consumer Protection and Enforcement states that an airline may offer passengers a settlement (which can be limited to $3,300 per person) if their luggage is lost. However, this amount only applies toward domestic flights. International flights can be treated differently in many cases.

Why Baggage Insurance Is Needed

Trip insurance contains baggage insurance that more accurately covers the value of the travelers’ luggage and the contents inside. If the baggage has been lost, damaged or stolen, the travel insurance policy that people purchase before they leave home is what will reimburse them for the cost of the luggage as well as the contents.

The Cost of Luggage

Baggage insurance is not a small consideration when people think about how much their luggage actually costs. Some people spend a great deal of money on their baggage. For example, just one Louis Vuitton bag can cost $3,500. Even if it is used, it can reach into the $3,000 range. However, the amount of money that people would receive from the airline may not even cover the price of one bag.

The Cost of the Contents

Sometimes, people need to take expensive clothing with them. A bride may have planned a dream wedding in the Caribbean and needs to transport her Vera Wang wedding dress to the location. A used dress can cost as much as $3,000, but it wouldn’t be unheard of for a new dress to cost more than $12,000. The $1,500 that the bride would receive from the airline wouldn’t completely cover even a used Vera Wang dress, so trip insurance is still necessary even if the luggage is not necessarily expensive.

Other Benefits of Purchasing Trip Insurance

When people purchase travel insurance, baggage insurance may cover checked luggage and the contents as well as their carry-on luggage and the contents within. Baggage insurance for carry-on bags is even more important because the airline is not required to reimburse people if something happens to them.

It will be up to travelers to set the limits for their baggage insurance. For example, if they are confident that the value of their luggage and the contents is $5,000, they may be able to purchase travel insurance with baggage insurance that covers them up to this limit. The deductible they will pay for this coverage will last for one single trip or for several trips throughout the year.

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