How Are Frequent Flyer Miles, Credit Card Rewards and Other Travel Awards Covered?
|Q. Do I insure the real value of the trip if I’m getting my trip through a Frequent Flyer program? Are credit card mileage points I redeem to get a plane ticket insurable?
No. Count frequent flyer tickets, award travel, vouchers, reward points, credit card points & credit card miles as a $0 trip cost. The value you insure is not the retail cost, but it’s what you paid out of pocket for the ticket, which is free and therefore has no insurable cost.
Travel insurance itself doesn’t re-deposit your frequent flyer miles
Many (not all) frequent flyer programs have a re-deposit fee to put the miles back into your account. If you want your travel insurance to reimburse you for the re-deposit fee to put the miles back into your account you must include the frequent flyer re-deposit fee in your insured trip cost.
You are still eligible for all the other coverages like Medical, Travel Delay, Missed Connection, Baggage, Baggage Delay, etc, even if you are using free airline tickets or free travel arrangements as any part of your trip cost.
Note: It’s your responsibility to find out if 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. Travel insurance will not cover award travel, vouchers, reward points or credit card miles at all.
Q. Which travel insurance plans reimburse the fee to re-deposit the miles into my airline’s frequent flyer account if the claim is for a covered reason?
A. If you cancel or interrupt your trip for a covered reason, all our Insurance Providers will reimburse you for the frequent flyer re-deposit fee of putting the miles back in the same account they were removed from if you insure both the taxes paid on the free tickets and the re-deposit fee in the insured trip cost. Most plans cover a maximum fee of $150.
Q. Which travel insurance plans reimburse any fees associated with a non-airline’s award travel program?
A. None. Travel insurance will not cover any fees associated with award travel, vouchers, reward points or credit card miles at all.
If you cancel your trip not for a covered reason using the “Cancel for Any Reason“, no plans will reimburse you for the frequent flyer re-deposit fees.
PPS - Even though TripInsuranceStore.com is the world's most informative travel insurance website, you are still responsible to know the coverage terms, conditions, limitations, and exclusions of your plan. No comments or explanations confirm or deny coverage. You need to refer to each plan's policy wording.
PPPS - The Trip Cancellation coverage begins at 12:01 a.m. on the day after the date the policy is purchased. All other coverages begin when you leave home for your trip when your departure date is in the future.
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