DOT Baggage Rules: Maximum Compensation Limits Explained

The US Department of Transportation requires airlines to compensate up to $4,700 per passenger for lost, delayed, or damaged baggage on domestic flights. This limit is set by federal regulation 14 CFR Part 254 and was last updated on January 22, 2025. For an overview of all compensation rules including the Montreal Convention, read our comprehensive compensation guide. Here's everything you need to know about the DOT limit.

The $4,700 Limit Explained

Under 14 CFR Part 254 ("Domestic Baggage Liability"):

Airlines must assume liability for up to $4,700 per passenger for checked baggage

This covers the depreciated value of the bag AND its contents

Airlines can set their own limit BELOW $4,700, but NOT above it

The limit is per passenger, per incident — not per bag

This is a minimum liability level that airlines must accept

What the $4,700 Covers

The DOT limit applies to:

Lost bags — the full depreciated value of the bag and contents

Delayed bags — interim expenses plus any permanent loss if the bag is never found

Damaged bags — repair costs or the depreciated value of damaged items

Pilfered bags — items stolen from your checked luggage

What It Does NOT Cover

Airlines exclude certain items from liability:

Cash, securities, and negotiable instruments

Jewelry, watches, and precious metals

Electronics (many airlines exclude these)

Fragile or perishable items

Items prohibited from checked baggage

Artwork, antiques, and irreplaceable items

Check your airline's Contract of Carriage for the specific list of exclusions.

How Depreciation Works

Airlines don't pay the original purchase price. They calculate the current depreciated value:

Clothing: 10-20% depreciation per year

Electronics: 20-33% depreciation per year

Luggage: 10-15% depreciation per year

Books, toiletries: Often not depreciated significantly

Example: A laptop purchased for $1,500 two years ago at 25% annual depreciation would be valued at $843.75 ($1,500 x 0.75 x 0.75).

How to Claim the Full $4,700

To get the maximum compensation:

Itemize every item in your bag with purchase price and date

Provide receipts or credit card statements for as many items as possible

Photograph your packing before future flights (builds a habit of documentation)

Cite 14 CFR Part 254 in your claim letter — shows you know the regulation

Don't accept the first offer — airlines typically offer 30-50% of the actual value

File a DOT complaint if the airline won't cooperate

Follow our step-by-step filing guide to make sure you don't miss anything

History of the DOT Baggage Limit

The DOT periodically adjusts the limit for inflation:

Before 2015: $3,400

2015-2024: $3,800

January 22, 2025 – present: $4,700

The $4,700 figure represents a significant 23.7% increase from the previous limit, reflecting accumulated inflation.

DOT vs. Montreal Convention

Note: For US domestic flights, the DOT limit ($4,700) is actually higher than the Montreal Convention limit (~$2,000). This means you may receive more compensation for a domestic lost bag than an international one.

Frequently Asked Questions

Does the $4,700 limit apply per bag or per passenger?

Per passenger, per incident. Even if you checked multiple bags, the total compensation is capped at $4,700.

Can I get more than $4,700?

Only if you declared excess value at check-in before the flight (airlines charge an additional fee for this). Otherwise, $4,700 is the ceiling for domestic flights.

What if my airline's limit is lower than $4,700?

Airlines can set lower limits in their Contract of Carriage, and some do. However, if you believe the airline's limit is unreasonably low, you can file a DOT complaint.

DOT Limits by Airline

The $4,700 DOT domestic limit applies to all US carriers, but how airlines handle claims within that limit varies. Here's a look at major US airlines:

American Airlines: American sets their domestic liability at the full DOT limit of $4,700. They calculate depreciated value for all items and require receipts or proof of purchase.

Delta Air Lines: Delta also honors the full $4,700 limit. They have a reputation for being relatively fair in their depreciation calculations compared to some competitors.

United Airlines: United applies the full DOT limit. Their online claims portal guides you through the itemization process, which helps ensure you don't miss any items.

Southwest Airlines: Southwest honors the $4,700 limit and is known for a straightforward claims process. Their customer relations team handles claims directly.

JetBlue: JetBlue applies the full DOT limit with a focus on customer satisfaction. They may be more flexible in negotiations than ultra-low-cost carriers.

Spirit Airlines: While Spirit must comply with the $4,700 limit, their documentation requirements are strict. Have every receipt and proof of purchase ready before filing.

Alaska Airlines: Alaska honors the full DOT limit and has a customer-friendly approach to baggage claims.

Frontier Airlines: Frontier complies with the $4,700 limit but, like Spirit, requires thorough documentation for claims.

For the complete claims process, deadlines, and contact information for any US airline, browse our airline directory. Each airline page has the specific liability limits, required documents, and best contact channels.