January 15th, 2023 at 05:58 am
Baggage Insurance as an Insurance Coverage Type
Although it rarely occurs, airlines have been known to misplace passengers’ bags. When this happens, it ruins an eagerly anticipated vacation. Sometimes, the luggage will show up on the next flight. Other times, the luggage is permanently damaged or lost. The stuff inside the bag might also be harmed, but most consumers might not be satisfied with the airlines’ resolution.
The Office of Aviation Consumer Protection and Enforcement says that if a passenger’s luggage gets lost, the airline can offer them a settlement of up to $3,300 per person. But this amount only works for flights within the United States. Different things can happen with international flights in many situations.
Why you need baggage insurance
The value of a traveler’s luggage and the things inside it are more accurately covered by the baggage insurance that comes with their trip insurance. People buy travel insurance before they leave home. If their luggage gets lost, damaged, or stolen, the policy will pay for the cost of the luggage and the things inside it.
The Cost of Luggage
When people think about how much their luggage costs, baggage insurance is not a small thing to think about. Some people put a lot of money in their bags. For example, just one Louis Vuitton bag can cost $3,500. Even if it is used, the price can be around $3,000 or more. But the money people would get from the airline might not even be enough to pay for one bag.
The Cost of the Contents
People have to bring expensive clothes with them sometimes. A bride might want to have her dream wedding in the Caribbean, but she needs to get her Vera Wang dress there. A used dress can cost as much as $3,000, but a new dress could easily cost more than $12,000. Even a used Vera Wang dress would cost more than the $1,500 the bride would get from the airline. Even if the bride’s luggage isn’t very expensive, she should still get trip insurance.
Other Good Reasons to Buy Trip Insurance
When consumers buy travel insurance, their checked luggage and its contents, as well as their carry-on luggage and its contents, may be covered by baggage insurance. The fact that airlines are not required to pay passengers if something goes wrong makes it more important to have insurance for carry-on bags.
It will be up to the traveler to decide how much insurance to buy for their bags. For example, if they are sure that their luggage and its contents are worth $5,000, they may be able to buy travel insurance that covers their luggage up to this limit. For this coverage, they will have to pay a deductible that will last for one trip or for multiple trips throughout the year.
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