Protect Your Stuff: Credit Cards With the Best Baggage Insurance
The recent British Airways lost baggage snafu really caught us off guard. How does an airline just lose thousands of pieces of baggage? And if they get lost permanently, who pays for it?
First, it’s important to know that your baggage is actually covered to a certain extent when you purchase your plane ticket. On domestic flights, liability for loss, delayed, or damaged baggage is covered by your airline and usually limited to $3,400. All the carriers have their own version, but as you can see on American Airlines' liability page, there are various restrictions and rules that determine your actual payout. That $3,400 dollars is not automatic — damage or loss must be proved, and the airlines won't pay if they believe your bag was unsuitably packed. What does that even mean?
So if you want to take the guessing out of your baggage insurance, here are some credit cards and insurance companies with plans that cover your valuables on domestic flights. Sorry, international flights are a whole other bag of chips. (Note: If your flight was booked with miles instead of a credit card, these rules will not apply.)
The lost luggage reimbursement plan by Chase is definitely one to consider as you plan your next trip. In addition to lost baggage reimbursement, it also offers baggage delay insurance. So, basically, if you’re stuck without your stuff for a couple of days, the company will help cover the cost of buying necessities until you’re back in action. Here are the key points:
- If you or your immediate family members’ checked or carry-on bags are damaged or lost by the carrier, you’re covered up to $3,000 per passenger.
- Baggage Delay Insurance: Reimburses you for essential purchases like toiletries and clothing for baggage delays of more than six hours by a passenger carrier. You’ll be reimbursed up to $100 a day for five days.
Annual Fee: $0
Interest: APR 15.99%
American Express Premier Awards Gold Card
American Express has a couple of different credit cards to choose from, but they all seem to have a similar baggage insurance plan. Here are some of the bullet points for its Premier Awards Gold Card: