I’ve Booked My Flights Using Miles, How Does This Affect My Travel Insurance?

I’ve Booked My Flights Using Miles, How Does This Affect My Travel Insurance?

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When purchasing Trip Cancellation travel insurance, determining which trip costs to include and which to exclude can often cause confusion for travelers. If travelers are using frequent flyer miles or rewards points to fund a portion of their trip, it can even further complicate the process.

Travel insurance comparison site, Squaremouth, explains frequent flyer mile travel insurance, including what is covered and what is not.

What is Not Covered by Travel Insurance?

Unfortunately, frequent flyer miles or reward points are not insurable under travel insurance. This means travelers who use miles or points are not able to be reimburse for the face value of their tickets or rooms booked using points. Therefore, to make their travel insurance policy less expensive, Squaremouth recommends travelers do not include the face value of their miles or points.

Travel insurance is designed to reimburse the prepaid and nonrefundable trip expenses that travelers incur before their trip departure. Since the traveler does not pay the cash value out of pocket for the reward points or frequent flyer miles, they are not considered a reimbursable expense.

What Can Be Covered by Travel Insurance?

Travelers can insure all taxes and fees that have paid and are associated with air miles or reward points. Some companies also provide coverage to rebank or redeposit the air miles. It is important to read the policy certificate or contact the insurance provider to confirm if they will provide coverage for rebanking fees.

What Should I Use As My Deposit Date? 

Even though the value of reward points or miles can not be insured, if travelers use points or miles to make their first travel arrangement, this date will be considered the original booking or deposit date. The initial booking date is considered the first time the traveler shows intent to travel. This includes any purchase or reservation made toward their trip.