When your travel insurance is third-party insurance and separate from the airline, you might wonder why the insurance company asks for confirmation of airline reimbursement for a lost bag.
Here’s why: when the airlines lose your bag, the loss of the bag is their responsibility and the company should pay some restitution for your loss.
Some travelers assume that their travel insurance plan will pay a benefit for lost baggage separate from the airline’s restitution, but that would amount to ‘double-dipping’ and that’s not how insurance works.
Once the matter is settled with the airline, your travel insurance company will take over and examine what you lost, what you received from the airline (in the form of a check or vouchers) and then subtract that amount from their payout, sending you the remainder. The amount you receive still may not equal what you lost, but it’s usually more than you get from the airline alone.
If you’re wondering if having lost baggage coverage with your travel insurance plan is worth it given this information, consider the following facts:
The lost baggage coverage you get with a travel insurance plan is intended to reimburse you at replacement value (not depreciated value), including the bag you lost.
Damian Tysdal is the founder of CoverTrip, and is a licensed agent for travel insurance (MA 1883287). He believes travel insurance should be easier to understand, and started the first travel insurance blog in 2006.