TravelSafe Answers a Question About Frequent Flyer Miles

Published by October 20, 2010

Travel insurance can reimburse trip expenses that are not refunded if the trip is cancelled for a covered reason.  Before the trip begins, this is trip cancellation.  A delayed departure, missed time during the trip or an early return home would be trip interruption.

Trip costs can include lodging, transportation, cruises, tours or other expenses related to the trip, so long as they are pre-paid and non-refundable.  But what about frequent flyer miles?  TravelSafe answered this question in the FAQ section of their website.

Frequent flyer miles are not covered if you must cancel or interrupt your trip. If you cancel your trip for a covered reason, you will only be reimbursed the money actually paid for the trip. However, TravelSafe does reimburse up to $150 toward the cost of an airline-imposed change or reissue fee if your trip is cancelled by your travel supplier, plus up to $150 toward fees to re-bank frequent flyer miles.

This is consistent with most travel insurance carriers.  The cash value of the miles are not able to be insured.  However, taxes and fees associated with frequent flyer miles can be insured.  Some carriers provide a set amount of coverage for fees, like TravelSafe explained.  Other carriers only cover trip costs listed on the policy, which means a travel insurance quote should include potential fees in the trip cost.  Always refer to the certificate of insurance for details.

Source:  TravelSafe FAQ