What is baggage insurance, and do you actually need it?

Joanna Teljeur

By:  Joanna Teljeur

14 minutes read

Last Updated:  June 3, 2026

On any international flight, you're already entitled to up to £1,600 (€1,800) in baggage compensation under international law. No policy required. No premium to pay. Most passengers have no idea this protection exists, and some spend money on baggage insurance to cover something they're already protected for.

Understanding what you're already entitled to changes the calculation entirely.

What baggage insurance actually is

Baggage insurance reimburses you for losses relating to your luggage while travelling. It covers three distinct situations: bags that go missing entirely, bags that arrive late, and bags that come back damaged.

It's rarely sold as a standalone product. Most commonly, it comes as part of a broader travel insurance policy, one of several benefits packaged alongside trip cancellation, medical cover, and travel delay protection. A small number of providers offer standalone baggage cover, typically priced at £15–£25 per trip.

The coverage sounds reassuring on paper. The reality depends heavily on the small print: specifically the sub-limits, exclusions, and documentation requirements that most passengers never read until they need to make a claim.

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What international law already covers

The Montreal Convention is an international treaty signed by over 130 countries, including the UK, all EU nations, the US, Canada, and Australia. It applies automatically to all international flights and makes airlines legally responsible for lost, delayed, and damaged baggage.

For delayed baggage, the airline is liable for the essential expenses you incur while waiting: clothing, toiletries, and medication. You can start claiming from day one, without waiting for the bag to be returned. For lost baggage, the trigger is 21 days without the bag being returned, at which point it is officially classified as lost and you can claim for the contents. 

For damaged baggage, the airline is liable provided you report the damage within 7 days of receiving the bag. After that deadline, your right to claim is gone.

The maximum liability is 1,519 SDR per passenger, approximately £1,600 (€1,800). That figure applies per person, per journey, regardless of ticket price, and was updated by ICAO in December 2024.

This is statutory protection. The airline cannot override it with their own terms and conditions, and it costs you nothing.

Domestic flights are more complicated. The Montreal Convention was written for international journeys, and whether it applies to a domestic route depends on the country. 

• In the UK and across the EU, domestic flights are covered by the same liability rules through retained EU legislation, so a London to Edinburgh flight carries the same £1,600 (€1,800) liability cap as a London to Paris flight. 
• In the US, domestic baggage liability is governed by Department of Transportation regulations under 14 CFR Part 254, which set a minimum airline liability of $3,800 per passenger for loss, damage, or delay, a different framework but meaningful protection nonetheless. 

Other countries have their own domestic regimes, some well-established and some considerably thinner. If you're flying domestically outside the UK, EU, or US, it's worth checking what protection exists in that country before assuming you have none.

Where baggage insurance fills the gap

The £1,600 Montreal Convention cap is per passenger, not per item, so the first gap insurance fills is high-value contents. If you're travelling with camera equipment, specialist sports gear, a laptop, or other valuable belongings, your exposure above that cap is real. Insurance covers it, provided the items are listed correctly in the policy.

Domestic flights in certain countries are the other area where insurance becomes more relevant. UK and EU domestic routes carry the same Montreal Convention protection as international ones. But outside those markets, the picture is patchier. 

US domestic flights have DOT liability protection up to $3,800, while many other countries offer far thinner or less enforced domestic baggage rules. If you regularly fly domestically in markets without established liability frameworks, a travel insurance policy with baggage cover fills that gap.

Some passengers also use insurance for higher delay reimbursement. The Montreal Convention covers essential expenses during a delay but there's no fixed daily limit: claims are assessed case by case. Some policies provide a fixed daily allowance, which can simplify things if you need to replace items quickly and prefer not to manage itemised receipts.

What baggage insurance doesn't cover

Per-item sub-limits

Sub-limits are the most common source of disappointment. A policy with a £3,000 total baggage limit will often cap any single item at £300–£500. A laptop worth £1,200 would only be partially reimbursed. Always check the per-item limit, not just the headline figure.

Electronics, jewellery, and valuables in checked baggage

Electronics and jewellery in checked baggage are commonly excluded entirely. Many policies take the position that these items should travel in your carry-on. If they're in the hold and go missing or arrive damaged, you may have no claim under the insurance, though the Montreal Convention liability still applies up to its cap.

Unattended and unsupervised bags

Unattended baggage is another frequent exclusion. If your bag is stolen and you weren't present, many policies won't pay out, and "unattended" is interpreted broadly.

Undeclared high-value items

Undeclared high-value items present a similar problem. If you're carrying something particularly valuable and haven't declared it to your insurer before travel, the claim is likely to fail. Some policies require specific declaration of items above a certain threshold.

Wear, tear, and minor damage

Broken wheels, scratches, and minor damage that could be attributed to general use rather than airline mishandling are commonly excluded too. Airlines use this argument as well, which is why documenting damage thoroughly at the airport strengthens your claim against both.

Documentation requirements

Documentation is ultimately where most claims fail. Policies require proof of ownership for claimed items: receipts, photographs, valuations. If you can't prove an item existed and was in your bag, the claim won't succeed. This catches passengers out more than almost any other exclusion.

Passengers are often surprised to discover their baggage claim fails not because the loss wasn't genuine, but because the documentation requirements weren't met. Filing a Property Irregularity Report at the airport the moment you notice a problem is the single most important step you can take. It creates an official record that both your insurer and the airline have to take seriously.

Anton Radchenko, Aviation Lawyer, AirAdvisor.

What about credit card baggage cover?

If you bought your flights on a premium travel credit card, you may already have baggage protection included, often with higher limits than a standard travel insurance policy and at no extra cost beyond the card's annual fee.

Cards like American Express Platinum and some premium Barclaycard and HSBC products include baggage delay and loss cover as a built-in benefit. Check your card benefits before buying separate insurance. Doubling up on the same coverage is a common and unnecessary expense.

Is baggage insurance worth buying?

For most travellers on international trips, buying standalone baggage insurance is probably not necessary. The Montreal Convention already covers you for up to £1,600 (€1,800) per person. If the total value of your checked bags falls below that figure, you're already protected under international law, and insurance primarily helps with the claims process rather than the outcome.

Travellers carrying high-value items are in a different position. If the total value of your checked baggage significantly exceeds £1,600, and the policy's per-item sub-limits actually cover what you're carrying, insurance fills the gap above the statutory cap. Check the electronics and jewellery exclusions carefully before buying, since those are the categories most likely to be excluded or heavily sub-limited.

• For domestic travel outside the UK and EU, insurance becomes more worthwhile. UK and EU domestic flights carry full Montreal Convention protection, but other markets are patchier: US domestic routes have DOT liability rules, and many other countries offer considerably less. If you're flying domestically somewhere without established baggage liability frameworks, insurance fills that gap.
• If your travel insurance already includes baggage cover, or if your credit card provides it as a built-in benefit, check what you have before spending more. Most comprehensive travel insurance policies include baggage protection as standard, and standalone cover is redundant if you already have it.

Before you fly

The most common mistake is buying insurance without first checking what's already there.

The Montreal Convention covers virtually every international route between 130-plus signatory countries, up to £1,600 (€1,800) per person, at no cost. If the total value of what you're checking falls below that, if your travel insurance already includes baggage cover, or if your credit card provides it as a built-in benefit, additional insurance is unlikely to add much.

The case for buying gets stronger when you're travelling with high-value contents above the statutory cap, when you're flying domestically in a country where liability protection is thin or inconsistently enforced (outside the UK, EU, and US), or when you're travelling without any existing baggage protection at all.

If something has already gone wrong on an international flight, the Montreal Convention entitles you to claim directly against the airline without needing a policy.

Claim with AirAdvisor and get up to €600 compensationFind out how much you’re owed today.Check Your Flight

Frequently asked questions about baggage insurance

My bag was damaged but I didn't notice until I reached the hotel. Can I still claim? 

Yes, provided you act within the time limits. Under the Montreal Convention you have 7 days from the date you received the bag to file a written complaint with the airline. Late discovery is common, and the window accommodates it, but you can't wait longer. Photograph the damage before unpacking, note the date, and submit the report to the airline straight away. Your travel insurance policy will also have its own reporting deadline, which may be tighter, so check both at the same time.

What counts as "essential expenses" under the Montreal Convention for a delayed bag? 

There's no fixed daily amount. Claims are assessed against what was reasonable given your circumstances: where you were, how long the delay lasted, and what you genuinely needed. Clothing, toiletries, and medication typically qualify. Replacing your entire wardrobe at a designer retailer does not. The standard is what a sensible person would spend in that situation, and you need receipts to prove every item.

What if the airline rejects my baggage claim? 

A rejection is not the end. Under the Montreal Convention, airlines have strict legal obligations and cannot simply refuse valid claims. If your claim is rejected without clear grounds, you can escalate through the airline's internal complaints process, through the Civil Aviation Authority, or through a specialist claims service that handles baggage claims on a no win, no fee basis.

Can I claim under the Montreal Convention and travel insurance for the same incident? 

Yes, for different amounts. The Montreal Convention covers up to the £1,600 (€1,800) liability cap. Travel insurance can cover losses above that cap, provided the items fall within the policy's terms. Insurers will ask you to disclose any amount already recovered from the airline. You can't recover the same loss twice, but you can use both to cover the full extent of what you lost.

Does the Montreal Convention apply if my bag was mishandled by a connecting carrier? 

Yes. Under the Montreal Convention, the airline that issued your ticket for the entire journey, known as the contracting carrier, is legally responsible for your checked baggage throughout the itinerary, even if the damage or loss happened on a segment flown by a different airline. Claim from the carrier you booked with.

Are carry-on bags covered under the Montreal Convention or travel insurance? 

Hand luggage is not checked into the hold, so airline liability under the Montreal Convention is lower for cabin bags. Airlines can argue that items in the cabin were under your supervision. Travel insurance cover for carry-on varies by policy. High-value items that must travel as carry-on, such as laptops and cameras, are often better covered by home contents insurance extended for travel than by standard travel insurance.

Sources:

• IATA — The Montreal Convention 1999 (MC99)
• US Department of Transportation — Lost, Delayed, or Damaged Baggage
• Upgraded Points — Is Baggage Insurance Worth It in 2026?
• NerdWallet — Baggage Delay, Loss Insurance: What to Know

Author:

Joanna Teljeur

Job/Position: Senior Editor & Content Lead

Joanna Teljeur is a senior editor and writer with 15+ years of experience in editorial leadership, journalism, and content development, specialising in consumer rights, aviation law, and public-interest reporting. Her work focuses on transforming complex regulatory and legal topics into clear, accurate, and accessible content for international audiences.

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