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Deal of the Day by Kelli B. Grant (Author Archive)
A Guide to Recouping Costs for Lost Baggage
Updated on December 18, 2007.
PICKING OUT YOUR 22-inch black, wheeled suitcase amid the sea of black luggage riding on the airport baggage claim carousel has never been easy. But with lost baggage rates skyrocketing, the chances of reuniting with your bag just got even slimmer.
More than one million pieces of checked baggage were lost, delayed or damaged while in the care of U.S. airlines between the months of May and July — among the worst such period in 20 years, according to the Bureau of Transportation Statistics, a division of the Department of Transportation. It hasn’t improved much. In October, the latest figures available, roughly six bags were lost for every 1,000 checked.
"Lost baggage is a symptom of an industry strained to capacity — and there's no end in sight," says Tom Parsons, CEO of BestFares.com. Like this summer's widespread flight delays and cancellations, lost baggage woes are caused in part by airlines operating more heavily-loaded planes with less staff. Adding to the problem are thousands of extra checked suitcases, spurred by the Transportation Safety Authority's ban on liquids in carry-ons.
The airlines' policies for lost baggage are notoriously consumer-unfriendly, adds Parsons. If an airline loses your bag permanently, you're entitled to up to $3,000 in compensation for domestic flights, or up to $9 per pound of baggage on international ones. The catch: You'll be paid only fair-market value for your belongings instead of the replacement value (meaning what it would cost to buy the items new), and you must provide receipts for pricey items of roughly $100 or more. Even worse: There's an extensive list of exclusions such as electronics, jewelry, fragile items, perishables and business-related materials that you won't even get paid a dime for.
That doesn't mean all hope is lost for recouping your missing items — or at least, what you paid for them. Savvy travelers can get more compensation for a bag gone astray, although you'll still need to cough up proof of purchase for any big-ticket items within. Here's how:
Exercise Your Rights
You can get more from the airline if you know what to ask for when reporting a missing bag. "The major airlines are silent on their contracts of carriage about what they owe you for a delayed bag," says Ed Perkins, a contributing editor for travel web site SmarterTravel.com. "They're full of weasel words like 'We'll use our best effort to get it back to you within 24 hours.'"The one thing you'll probably get right off the bat is a toiletry kit. If you push a little harder and ask for money to cover your immediate needs, you may be furnished with cash, gift cards or airport concession vouchers.
Here's a rundown of what some of the major airlines offer:
Airline Liability on Domestic Travel | |
Airline | Reimbursement |
When you report your bag missing, up to $25. (One-time only.) | |
After 24 hours, up to $50. Get $25 per day thereafter, for up to five days. | |
After 24 hours, up to $25 per day for up to five days. | |
After 24 hours, up to $50 in necessary expenses. (One-time only.) | |
After 24 hours, up to $25 per day for up to five days. | |
* Data from individual airlines. |
Be Loyal
"There's no question that airlines treat their elite frequent-flier members better," says Perkins. Not only do these fliers' bags receive special handling instructions (see sidebar), but they also have more leverage when requesting reimbursement for expenses. "You might be able to get $50 a day instead of $25," he says.Pay With Plastic That Pays You Back
Book with the right credit card and your issuer can provide both financial and logistical aid. "Baggage assistance has gone under the radar, but with the current problems, people are paying more attention to it now," says Curtis Arnold, founder of CardRatings.com.At minimum, cards offer a toll-free number you can call, where representatives will keep you apprised of the airline's process in hunting down your bag. With gold- or platinum-level cards, there are more tangible complimentary benefits. The Chase Freedom card, for example, reimburses you for up to $300 in immediate needs should your bags be delayed. American Express's Baggage Insurance Plan covers another $500 of your checked-bag value, above and beyond what the airline pays, plus $1,250 of your carry-on bags' value should its contents be damaged or lost (i.e. stolen) in transit.
Two cards Arnold likes:
Benefits for Delayed and Lost Baggage | |||
Credit Card | APR | Annual Fee | Benefits |
11.49% to 22.49% variable | None | Baggage Delay: Get up to $300 for immediate expenses for delayed bags.
Lost Luggage Insurance: Up to $3,000 in additional coverage for checked bags. | |
13.24% variable | None | Lost luggage Coverage: Up to $3,000 in additional coverage for checked bags. | |
Look Homeward, Traveler
Chances are, your homeowners' insurance will pick up at least some of what the airline won't, says Parsons. Most policies cover your possessions outside the home, which usually includes baggage. Contact your insurance agency as soon as your bag is declared missing, to see what you're entitled to. Just don't expect an immediate response: Most insurers won't make a move until your claim with the airline is settled, he warns.Consider Extra Coverage
Still don't feel like your travel gear is adequately covered? Insurance for delayed or lost baggage is dirt cheap — and you have plenty of options, says Perkins. But keep in mind that these policies won't kick in until after airline claims are settled. "It pays you the gap between what you got from the airline and what you really lost," he says.Where to look:
Credit cards. Some credit cards will bump up your benefits for a small fee. For $5.75 per trip, American Express provides "Baggage Delay and Loss Protection" that kicks in when your bags are delayed by more than six hours. You'll get up to $200 for immediate expenses, and an additional $500 coverage on checked and carry-on baggage (above and beyond the card's usual coverage).
Independent insurers. Delayed, damaged and lost baggage is included in most standard policies. Or you might buy it separately. An annual Bag Trak plan from AIG Travel Guard, for example, costs just $30 — and provides you with up to $300 for immediate expenses after a bag has been delayed for 24 hours, and $500 in additional coverage for lost bags.
Airlines. Ask at the check-in counter about so-called excess valuation coverage, which increases the airlines' maximum liability for damaged or lost baggage. American, for example, charges $2 per each $100 of additional coverage.
Limiting Your Risk
Short of fitting everything in your carry-on bag, there's nothing you can do to entirely eliminate the risk of delayed or lost baggage. But you can reduce your odds with these four tips:Arrive early
"If you show up 20 minutes before your flight, your bag is not making it with you," says Susan Foster, author of "Smart Packing for Today's Traveler." Most airlines have cut-off deadlines of about 40 minutes before takeoff for a piece of checked baggage to make it onto the aircraft, and TSA security checks can also delay a bag. Aim for the standard two hours before your flight.
Fly nonstop
"If you're making a connection, all bets are off," says Parsons.
Trade up
One more reason to go for the better, more expensive seat — airlines have special baggage handling rules for first- and business-class passengers that make it less likely their luggage will be mishandled. Continental, for example, places "Priority Baggage" tags on those fliers' checked items.
Give your bag ID
Tuck your contact information — or better yet, an itinerary — into an exterior pocket, and another inside the bag's main compartment, says Foster. That way, a stray bag can get to you during your trip even if its exterior tag falls off.
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