Travelers often book portions of their trips using reward points, frequent flyer miles, or other similar programs. When purchasing travel insurance with trip cancellation and interruption coverage, travelers sometimes ask if they can insure the points or miles as part of their total trip cost. Unfortunately, because the points or miles have no cash value they cannot be insured.
However, any re-booking fees or taxes may be insured as part of the total trip cost. In the event of a cancellation, the travel insurance provider would be able to reimburse those fees. Some travel insurance carriers provide an allowance for re-booking fees. Others only cover trip costs listed in the policy, which means travelers should include any anticipated fees when calculating trip costs.
While trip costs should not include the cash value of points or miles, they should include any pre-paid, non-refundable costs. These may include airfare, lodging, cruises, tours, or other expenses related to the trip. Travelers should refer to their certificate of insurance to verify trip cancellation and interruption benefits.