Travel insurance that covers frequent flyer points

Will travel insurance cover trip cancellation with points?

It depends. If you cannot collect compensation from your airline, you are generally able to seek reimbursement from your travel insurance for the following reasons:

• Family emergency. If you need to cancel a trip because a close family member is unwell or has died.
• Severe illness. If a doctor provides written evidence that you are unfit to travel.
• Accident. Unexpected events that prevent you from travelling, like a car accident or injury.
• Extreme events. Civil unrest, war and other extreme events that could alter pre-paid travel.
• Natural disasters. Storms, earthquakes, tsunamis and other severe weather conditions that affect your pre-paid travel arrangements.

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When does travel insurance not cover your frequent flyer points?

Generally speaking, you won't be covered if you cancel your trip without justification. Some of the reasons where you would not be reimbursed include:

• Changing your mind. You're never able to just cancel your trip because you decided not to go and receive a full refund.
• Missed flights. If you miss your flight, you won't be eligible for a refund on the points you used to book your trip, unless you missed your flight for reasons outside of your control.
• If your airline, accommodation or tour operator goes bust. Unfortunately, even if you've purchased travel insurance, you won't necessarily be covered. Most policies specifically exclude cover in the event that a business becomes insolvent. There are only a few Australian brands that will cover you if a travel carrier or airline goes broke.
• If you can get reimbursed elsewhere. If your airline or tour operator agrees to pay you compensation, travel insurance will not recover the lost points as well.

Who covers trip cancellation with points?

Below is a table of the travel insurance providers that could pay out the value of your points if you have to cancel your trip.

Brand	PDS wording and frequent flyer mentions	Apply
	"The value of frequent flyer or similar flight reward points, air miles, redeemable vouchers or similar schemes lost by You following cancellation of the services paid for with those points, if You cannot recover Your loss in any other way."	Get quote
	"You have to cancel the Journey (where You cannot rearrange it prior to leaving Home) We will pay You the value of frequent flyer or similar flight reward points, air miles, redeemable vouchers or similar schemes lost by You following cancellation of the services paid for with those points, if You cannot recover Your loss in any other way."	Get quote
	"You must give us any information we reasonably ask to support your claim at your expense, such as but not limited to: For expenses paid with frequent flyer points, credit card points, or other loyalty program points we require written confirmation from the provider confirming the point to dollar value in Australian dollars. If you are unable to provide written confirmation, we will calculate the point to dollar value in Australian dollars at a rate determined by us."	Get quote
	"Your loss of frequent flyer or similar air travel points you used to purchase an airline ticket following the cancellation of that airline ticket, if you cannot recover the lost points from any other source."	Get quote
	"Frequent flyer or similar flight reward programmes – claims for points lost due to the cancellation of your airline ticket will be reimbursed based on the nominated cash value for those points given by the reward programme operator."	Get quote
	"Frequent flyer or similar flight reward programmes – claims for points lost due to the cancellation of your airline ticket will be reimbursed based on the nominated cash value for those points given by the reward programme operator. We will not provide cover if the loss of such points or their value can be recovered from any other source."	Get quote
	"Where an airline ticket was purchased using frequent flyer or similar air points, we will pay you the frequent flyer or similar air points lost following cancellation of your air ticket."	Get quote
	"Where an airline ticket was purchased using frequent flyer or similar air points, we will pay you the frequent flyer or similar air points lost following cancellation of your air ticket."	Get quote
	"Where an airline ticket was purchased using frequent flyer or similar air points, We will pay You for frequent flyer or similar air points lost following cancellation of Your air ticket."	More info
	"The value of frequent flyer or similar flight reward points, air miles, redeemable vouchers or similar schemes lost by You following cancellation of the services paid for with those points, if You cannot recover Your loss in any other way."	Get quote
	"[Covers consequential] loss arising from using frequent flyer points or similar loyalty programmes"
	"You have to cancel the Journey (where You cannot rearrange it prior to leaving Home) We will pay You the value of frequent flyer or similar flight reward points, air miles, redeemable vouchers or similar schemes lost by You following cancellation of the services paid for with those points, if You cannot recover Your loss in any other way."	Get quote
	"Frequent flyer or similar flight reward programs - claims for points lost due to the cancellation of Your airline ticket will be reimbursed based on the nominated cash value for those points given by the reward program operator. We will not provide cover if the loss of such points or their value can be recovered from any other source."	More info
	"The value of frequent flyer or similar flight reward points, air miles, redeemable vouchers or similar schemes lost by You following cancellation of the services paid for with those points, if You cannot recover Your loss in any other way."	Get quote
	"You must give us any information we reasonably ask to support your claim at your expense, such as but not limited to: For expenses paid with frequent flyer points, credit card points, or other loyalty program points we require written confirmation from the provider confirming the point to dollar value in Australian dollars. If you are unable to provide written confirmation, we will calculate the point to dollar value in Australian dollars at a rate determined by us."	More info
	"Where an airline ticket was purchased using frequent flyer or similar air points, we will pay you the frequent flyer or similar air points lost following cancellation of your air ticket."	Get quote
	"Where the purchase of a Licenced Airplane, Ship, Bus or Train ticket (or part thereof) was done so using membership rewards points or similar points and the loss of such points cannot be recovered from any other source, We will calculate the loss by using the retail price associated with the travel provider of the issued ticket at the time the ticket was purchased."
	"Frequent flyer or similar flight reward programs - claims for points lost due to the cancellation of Your airline ticket will be reimbursed based on the nominated cash value for those points given by the reward program operator. We will not provide cover if the loss of such points or their value can be recovered from any other source."	More info
	"Loss of Qantas Points, we will refund your Qantas Points for any Qantas Frequent Flyer award ticketing or rebooking fees that you may incur for any reason covered by this insurance."	Get quote
	"Where an airline ticket was purchased using frequent flyer or similar air points, We will pay You for frequent flyer or similar air points lost following cancellation of Your air ticket."	More info
	"We will pay the value of any frequent flyer or similar air travel points, loyalty cards points, redeemable vouchers or other similar schemes, you used to purchase an airline ticket following cancellation of that airline ticket due to unforeseen circumstances outside of your control, if you cannot recover the lost points from any other source."
	"If you paid for any part of your trip using loyalty points or similar reward points, the amount we will pay is calculated as follows: the cost of the equivalent class airline ticket, based on the best available advance purchase airfare for the same season of the following year, less your financial contribution towards the airline ticket; multiplied by the total amount of points lost; divided by the total amount of points redeemed to obtain the airline ticket."	More info
	"The value of frequent flyer or similar flight reward points, air miles, redeemable vouchers or similar schemes lost by You following cancellation of the services paid for with those points, if You cannot recover Your loss in any other way."	More info
	"For the value of frequent flyer points, air miles, loyalty card points, redeemable vouchers or other similar schemes lost by you as a result of cancelling the services paid for or obtained with those points, air miles, vouchers or schemes, but only if you cannot recover your loss in any other way."

^{Note: This information was last updated May 2025}

How will travel insurance pay you for frequent flyer points?

How you'll be reimbursed and how much you will be reimbursed for will vary from insurer to insurer. Often, you'll receive the cost of an equivalent airline ticket. Others will reimburse you the frequent flyer points you used to pay for the ticket.

The amount an insurer will pay is generally calculated as follows

• The cost of an equivalent class airline ticket, less your financial contribution towards the airline ticket.
• Multiplied by the total amount of points lost
• Divided by the total amount of points redeemed to obtain the airline ticket.

Frequently Asked Questions

• What types of loyalty points or reward programs does travel insurance cover?

  Travel insurance policies that offer frequent flyer point cover generally refer to "frequent flyer or similar flight reward points, air miles, redeemable vouchers, or similar schemes." This typically includes points used to purchase airline tickets from major loyalty programs like Qantas Frequent Flyer or Velocity. Some policies may also cover credit card points or other loyalty program points used for travel-related expenses. Always check your specific Product Disclosure Statement for exact details.

• Is there a maximum limit on the value of frequent flyer points I can claim?

  Yes, most travel insurance policies have a maximum benefit limit for trip cancellation or lost points. This limit will be outlined in your policy's Product Disclosure Statement. The maximum amount you can claim is typically the lesser of the cash value of the lost points or your policy's overall cancellation benefit limit.

• What documentation do I need to provide when making a claim for lost frequent flyer points?

  When making a claim for lost frequent flyer points, you will typically need to provide several documents. These may include proof of your original booking using points, a statement from the airline or loyalty program confirming the points lost and their equivalent cash value, and evidence of the unforeseen event that caused your trip cancellation. Medical certificates, police reports, or other official documents may be required depending on your reason for cancellation.

• Does travel insurance cover points if I booked my trip using a combination of points and cash?

  If you used a combination of frequent flyer points and cash to book your trip and need to cancel for a covered reason, travel insurance can often cover both components. The policy will typically reimburse the cash value of the lost points and the non-refundable cash portion of your booking, up to the policy limits. You will need to provide proof of both the points and cash contributions.

• Will my travel insurance cover points if the frequent flyer program devalues them?

  No. Travel insurance generally does not cover losses due to changes in a frequent flyer program's value or terms, such as point devaluation. Policies are designed to cover unforeseen events that prevent you from travelling, not changes to the intrinsic value of your points by the program operator.

• Can I claim for points used for flight upgrades or other ancillary services?

  Cover for points used for flight upgrades or other ancillary services, such as extra baggage or lounge access, depends on your specific policy. Many policies focus on covering the value of points used for the primary airline ticket. Some may extend to other services if they are considered part of the "services paid for with those points" as stated in the PDS. Always check your policy wording carefully.

• How long after an event can I make a claim for lost frequent flyer points?

  Most travel insurance policies require you to notify the insurer of a claim within a specified timeframe, often 30 days after the incident or as soon as reasonably possible. It is important to contact your insurer promptly to understand their specific requirements and deadlines for submitting a claim for lost frequent flyer points.

Written by

Gary Ross Hunter

Journalist

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Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

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