Today, just about every traveler is collecting frequent-flyer miles. International tourism grew 8% in 2016, so this comes as no surprise. As travelers head to more destinations, they search for ways to stretch their dollar to its greatest value.
Using frequent flyer miles can help everything go right – until it goes wrong. Most travelers don't know if travel insurance can help. In short, the answer is yes. But it's not as simple as it seems.
Does travel insurance cover frequent flyer miles?
The face value of your frequent flyer miles does not translate to cash. So, you would not be able to include your miles in the cost of your trip. But that does't mean all hope is lost.
Coverage for rebanking fees is available. It allows you to use your frequent-flyer miles another time.
How Travel Insurance Works With Frequent Flyer Miles
Rebanking fees
If you're forced to cancel your trip, you'll want to keep your miles for another day. Most rewards members have to pay fees up to $150 to rebank their miles. Travelers with elite or platinum status may be exempt.
How coverage works is up to the insurance company you buy from. TravelSafe covers up to $150 in rebanking fees if you cancel your trip for a covered reason. After you rebank your miles, you would send documentation to claims. They would review your claim and determine whether or not it is eligible for a refund.
Insuring the Gap
Your miles won't always cover everything. You may find yourself using 1,500 rewards miles for a flight that requires 2,000. The extra $500 you spent out of pocket is insurable.
Insurance can close the gaps. It covers extra fees associated with booking. Things like baggage fees, state and federal taxes, and other expenses – so long as those expenses are prepaid and nonrefundable.
