How Are Frequent Flyer Miles, Credit Card Rewards and Other Free Travel Awards Covered?
|Q. Do I insure the real value of the trip if I’m getting my trip through an Award Travel 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. You can insure the taxes you paid to use your frequent flyer fees. Be sure to also include your frequent flyer re-deposit fee in your insured trip cost.
If you’re concerned that you’ll be stuck with having to buy a costly one-way ticket to come home unexpectedly, round your per person trip cost up to the top of the range (usually $500 or $1,000 increments) since the trip interruption benefits are based on your insured trip cost.
In addition, 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 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 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.
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.
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