Are Frequent Flyer Miles & Other Free Travel Awards Covered The Same Way?

by Steve Dasseos on December 3, 2007

This question was asked in December 2007. All my advice was correct until the Coronavis crisis that started in early 2020. Click here to see how future travel credits can be insured.

We’re buying a trip with our credit card award points and frequent flyer miles for the airline portion. If we cancel the trip for a covered reason how will the travel insurance pay us? Ruth & David

This is a complicated question, but that’s OK ’cause I like complicated questions.

While it may seem like all free travel’s the same (since you’re getting the trip for free), the fact is that travel insurance plans don’t cover them the same way. Here are some tips so you can be prepared:

  • For trip cost purposes, count frequent flyer tickets, award travel, vouchers, reward points & credit card miles as a $0 trip cost. The value is not equal to the money you save by using them. Your trip cost is only the taxes you pay when you exercise them.
  • Many (not all) frequent flyer programs have a re-deposit fee to put the miles back into your account.
  • Does your award travel, vouchers, reward points or credit card miles allow you to re-use them if you don’t use the travel you get with them?

You can get more information here:
https://tripinsurancestore.com/frequent-flyer-and-free-travel-award-coverage/

I hope this makes sense.

And, if you have any questions about travel insurance, call us Toll-Free at 1-888-407-3854 or email Steve (me), The Travel Insurance Guru, here or using steve [at] tripinsurancestore dot com.

I hope this makes sense. If you want the right travel insurance advice, call us at 1-888-407-3854 and we'll help you figure it all out.

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