Here’s something most travelers never know until it’s too late: airlines can’t just offer you whatever they feel like when your luggage gets lost or wrecked. Federal rules set a floor on what they’re required to cover — and it’s not nothing.
According to federal regulations covering domestic baggage liability, airlines operating large aircraft on domestic flights cannot cap their liability at less than $4,700 per passenger for loss, damage, or delay of your personal property and baggage. That’s the current number. The topic headline mentions $3,800 — that was a previous limit before it was updated. As of the current regulations, $4,700 is the floor.
Important note: this $4,700 rule applies to domestic flights. If you’re flying internationally, different rules apply under an international agreement called the Montreal Convention, which sets its own separate limits. Check with your airline or the DOT for details on international claims.
So if an airline tries to hand you a $50 voucher and call it a day, that’s not how this works.
The U.S. Department of Transportation is clear that if your bags are declared lost or significantly delayed, you’re also entitled to a refund of any baggage fees you paid. So even before you get into the bigger claim, that checked bag fee comes back to you.
Now, a few things worth knowing. Airlines don’t always make this easy. According to the DOT, it typically takes anywhere from four weeks to three months for an airline to actually pay out on a lost luggage claim. When they do make an offer, they might give you the choice between a cash payment and a higher-value travel voucher. If you go the voucher route, ask about every restriction — blackout dates, expiration, whether it’s transferable — before you agree to anything.
Also: airlines do assert liability limits, meaning they’re not automatically writing you a check for the full $4,700. What that floor means is they can’t legally set their limit *lower* than that number. Your actual payout depends on what you lost and what you can document. Keep receipts. Know what you packed. The better your records, the stronger your claim.
If your bags are just delayed — not lost, just late — you may still be able to get reimbursed for essential items you had to buy while waiting. That’s worth asking about directly with the airline.
Bottom line: if your luggage goes missing or comes back destroyed on a domestic flight, don’t accept the first low offer without knowing your rights. Federal law has your back here more than airlines might let on.