How Does Lost or Delayed Baggage Insurance on Credit Cards Work?

Jan 30, 2024 By Susan Kelly

Even though it seldom happens, having an airline or other carrier misplace or delay your luggage can be tremendously annoying. According to the U.S. Department of Travel, four out of every 1,000 pieces of luggage taken onboard aircraft were either misplaced, harmed, delayed, or stolen in December 2020.

What Is Insurance for Lost or Delayed Baggage?

Two different credit card safeguards are available: compensation for lost luggage and insurance against delayed baggage. Some Visa, Mastercard, and American Express cards give insurance for delayed baggage, while some Visa and Mastercard cards provide coverage for lost or damaged luggage. Several cards, including the following, offer both.

The Method of Lost Luggage Coverage by Credit Card

When you pay for your airline or other popular travel carrier using a credit card activated (such as a cruise line or train operator).

If a common carrier loses or damages your luggage, you are entitled to compensation for the costs incurred to repair or replace your possessions up to the maximum coverage amount.

For instance, the Chase Sapphire Preferred offers up to $3,000 in coverage for you, your spouse or partner, and your dependents. Still, the Marriott Bonvoy American Express offers up to $1,250 per person in range.

All credit cards may not cover checked baggage lost or damaged while in or traveling to or from a terminal. It's crucial to study your credit card's benefits guide to determine what is qualified because policies might range in terms of how much coverage different cards offer and what is and isn't included.

How to Make a Claim for Lost Luggage

If your luggage is lost or damaged, you must common other insurance policy you might have. You can submit your credit card claim with the insurance company if none of those choices are accessible. Check your card's rules and submit the claim as soon as possible because you usually have 30 days to alert the benefits administrator.

The following information is usually required when filing a claim:

evidence that you paid for the trip with your card

a list of the things that were damaged or destroyed, along with their replacement cost

A confirmation that you submitted a claim to the carrier, a settlement, check, or denial from the common carrier. The benefits administrator needs additional papers. Depending on the card, you may have up to 90 days to give this information.

The Workings of Credit Card Insurance Against Delayed Baggage

When your luggage is delayed, usually by at least six hours, delayed luggage insurance kicks in, much like lost luggage insurance. This coverage is intended to cover the cost of essentials like clothing and hygiene products that you would require due to the delay.

Depending on the card, your coverage will be limited to a specific amount every day for up to five days rather than covering the expense of replacing existing things.

Again, some things, like contact lenses, glasses, or hearing aids, could not be covered. The same is true for papers, tickets, cash, and other comparable goods.

How to Make an Insurance Claim for Delayed Baggage

You must file a claim for delayed baggage, like handling a lost or damaged bag. Usually, you have a few weeks to submit the claim. Then, similar to lost baggage insurance rules, you'll have up to 90 days following the incidence date to furnish whatever documents the benefits administrator requests.

Carrier Compensation

If the carrier mishandles your luggage, it will usually offer some compensation. To begin the process, you must report the missing, broken, or delayed products as soon as possible. Each carrier, however, has its methods for determining the value of your goods and how much to pay you back for delayed baggage.

As a result, you might want extra insurance just in case the airline or another travel company gives a settlement that is less than what it would cost to replace your belongings.

Travel Protection

A wide range of problems you run into while traveling can be covered by travel insurance coverage, including delayed, damaged, or lost luggage. Check the advantages of any travel insurance you may have purchased to see what is and is not covered.

Does My Credit Card Need Lost Luggage Insurance?

The Balance thinks delayed baggage and lost luggage insurance are fantastic benefits for credit card users.

You won't have to worry about relying exclusively on the carrier's reimbursement policies if you can obtain a credit card that provides one or both of these coverages. Additionally, you might not need to buy a new travel insurance policy each time you go on a trip.

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