Insuring Arrangements Obtained With Frequent Flyer Milas OrOther Rewards Points

You got your air tickets by using frequent flyer miles or credit card points. If you had paid cash that ticket would have cost you $800. If that the amount you should insure? Unfortunately, no insurer we're aware of will insure that $800. Their position is that frequent flyer miles or credit card points have no value so neither do trip arrangements obtained with them.

You can certainly insure any booking fees and/or taxes associated with the tickets. And if you used miles for the base ticket but used cash to upgrade to business or first class that cost can also be insured. But otherwise, in the case of a cancellation you're going to have to get those miles or points "re-banked" into your account which most of these programs will do for a fee ranging from about $50 to $150 or more.

What about getting reimbursed for that "re-bank" fee? With some insurers, under some circumstances it's possible to claim that amount. Here's some examples:

Frequent traveler/Loyalty plan coverage

When it applies

You have to re-deposit points in your frequent traveler or loyalty program because your trip is canceled for one of the covered reasons listed under trip cancellation coverage.

What it covers

Please refer to your letter of confirmation to confirm your coverage and limits.

Redeposit fees
Fees for re-depositing frequent traveler or loyalty program awards into your account,


Trip Cancellation : Benefits will be paid, up to the Maximum Benefit Amount shown in the Schedule of Benefits, to cover You for the unused non-refundable prepaid expenses for Travel Arrangements, including up to $150 for the cost of airline-imposed fees to rebank frequent flyer miles for air flights to join Your Trip


If the travel supplier cancels your Covered Trip, you are covered up to $200 for the reissue fee charged by the airline for the tickets or up to $200 for the cost charged to retain your frequent flyer miles/points if you had used them to purchase the airline ticket in conjunction with this Covered Trip. You must have covered the entire cost of the Covered Trip including the airfare.

The biggest difference here is that the insurer in example #3 will only cover you if your travel supplier cancels your trip, not if YOU cancel the trip. While that's better than nothing it's not as useful as covering this cost if you have to cancel for a covered reason.

travel insurance basics