Is baggage insurance worth it?

Find out what baggage insurance means, what it does and doesn’t cover and how it can help you get compensation if your luggage is delayed, lost, stolen or damaged.

Patrick Ikhena

From the Travel team

minute read

posted 30 JANUARY 2020

What is baggage cover?

Baggage cover (also called baggage insurance and luggage insurance) covers you if your bag gets lost, stolen, or damaged. It’s usually included with standard travel insurance, but it’s always a good idea to check that the level of cover suits your needs (and your bags).

CORONAVIRUS UPDATE

As of 23rd Match 2020, the UK Government announced a series of restrictions to travel, public spaces and gatherings. For a minimum of three weeks, people are being instructed to stay at home whenever possible. For this reason, travel insurance policies purchased from this date, for trips within the UK with a start date before 13th April 2020, will not be valid.

The UK Government also instructed all British tourists and travellers, that are currently abroad, to return to the UK as soon as possible.

As of 17th March 2020, the Foreign and Commonwealth Office (FCO) have advised against all non-essential travel abroad for an initial period of 30 days. This means that any travel insurance purchased from this date, for trips outside of the UK with a start date before 16th April 2020, will not be covered by the provider.

Coronavirus was declared a pandemic on 11th March 2020, so this may also affect your policy, particularly those taken out on or after that date. Please check any existing policies carefully, to find out what you’re covered for.

For more information please see our coronavirus and travel insurance page.

What if the airline damages my bags?

Your travel insurance should cover this.

If you find that your bag(s) have been damaged as you come to take your them off the carousel, make sure you report the damage before you leave the airport, and fill out any necessary forms. You’ll very likely need that paperwork to make a claim on your policy.

What if my bags are stolen?

Your travel insurance should cover this too.

If your bags are stolen, make sure you report the theft to the police as soon as you’re aware. You’ll need to get a crime reference number from them to complete your claim.

It’s really important you report the theft promptly, as some policies have exclusions if a theft is not reported within a certain time limit.

Is there such a thing as delayed bag compensation?

Yes, but not on your travel insurance. Travel insurance won’t cover delayed bags, but if your bags are temporarily lost by your airline, they may pay to replace items like clothes and toiletries. Check before you leave the airport though, as not all airlines will do this.

Are there situations my luggage insurance won’t cover?

Yes. Most travel policies have exclusions when it comes to dealing with your baggage cover.

For example, if you leave your luggage unattended and something happens to it, you may find your insurance won’t cover it.

This is why you should always take a moment to read through your insurance provider’s policy very carefully.

What amount of coverage can I expect?

Insurance providers usually set a cap on the amount that they will pay out if your baggage is lost, stolen or damaged. This is typically between £750 and £2,000 but does vary. There are some providers who cover up to £4,000 so if you are taking lots of valuables or you paid a lot for designer luggage, then you may want to look for a policy with this kind of top limit.

Be careful of single-item limits though. A single-item limit is the maximum an insurance provider will pay towards any single item. So if you have an expensive piece of kit, like a laptop or a camera, and your bag gets stolen, you might find yourself out of pocket if the limit is set at an amount lower than what your tech is worth.

If you’re travelling with a set of golf clubs for example, or on a business trip with your company laptop, always check carefully what cover is provided.

What does “policy excess” mean on my baggage coverage?

The excess on an insurance policy is the amount that you’ll have to pay per claim for each insured person before the insurance provider will pay out anything towards your claim. On baggage cover this is usually between £50 and £200, but it does vary and can be higher.

When comparing travel cover, there’s always a trade-off to consider between the cost of the insurance cover and the amount of the excess. Often, the greater the excess, the lower the cost of cover may be.

Because of this, be wary of simply buying the cheapest cover – it could well mean a higher excess, which could be more than your baggage is actually worth!

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