Tighter Carry-on Rules Ahead? Here’s How Travel Insurance Can Help

 

PETERSBURG, Fla., May 30, 2025 – Airlines are tightening carry-on size limits as they seek to improve the boarding process and boost revenue. This means passengers may face higher fees for carry-ons, and in some cases, be forced to check their bags altogether due to the new requirements.

 

With this comes an increased risk of luggage being lost or delayed by the airline. According to Squaremouth, the nation’s largest travel insurance comparison service, travelers have become more concerned about their luggage and are opting for travel insurance benefits that cover lost or delayed bags. 

 

The number of travelers buying coverage for their luggage this year has more than doubled, increasing by 107% over last year. 

 

Why Travel Insurance May Be the Solution

 

With higher potential for delayed, lost, damaged, or stolen luggage, travelers are at risk of getting stuck without their items and being forced to spend money to buy essentials and replace lost items. 

 

That’s where travel insurance can help. 

 

Baggage Delay: If your luggage is significantly delayed by the airline, Baggage Delay coverage can reimburse you to buy essentials while you wait for your bags to arrive. Most plans can refund you for items such as a change of clothes and essential toiletries, like a toothbrush, toothpaste, and shampoo. 

 

Here are some important considerations: 

• Standard coverage usually kicks in between 12 and 24 hours after a delay
• Reimbursement limits range between $100 and $1,000 per person

Squaremouth Tip: The best plans kick in after just 3 or 6 hours after a delay. Look for a plan with a shortened window to ensure adequate protection for your valuable items. 

 

Baggage Loss: If your luggage is lost by the airline, you may be entitled to reimbursement of the actual cash value of your personal items. That’s where Baggage Loss coverage comes in. 

 

In the event your luggage is lost,  travel insurance can pay up to a certain amount per person and per item to reimburse youIn general, you can expect coverage to fall into the following ranges:

• Per person: $500 – $3,000
• Per item: $50 – $500
• Total limit for valuable items: $250 – $1,000

Squaremouth Tip: Most travel insurance plans aren’t designed to cover expensive items. If you’re traveling with valuable items, it’s always important to look for higher per person and per item coverage limits, ideally those that provide up to $2,500 in total coverage for valuable items. 

About Squaremouth

Squaremouth is a trusted name in the travel insurance industry offering comprehensive, transparent, and competitive coverage to travelers for 20 years through its digital platform. With the largest portfolio of travel insurance carriers and products in the U.S., Squaremouth has insured over 4 million clients.