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Travel insurance that covers frequent flyer points

Don't lose your frequent flyer points. Travel insurance can protect them when the unexpected happens.

What you need to know

  • Some Australian insurers will reimburse your frequent flyer points, but only if you need to cancel due to circumstances outside of your control.
  • Most will pay the value of your reward points used to purchase an airline ticket.
  • It will not cover frequent flyer points lost due to missed flights or change of mind..

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.

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.

Finder survey: How many holidays do Australians plan on taking this year?

Response
140.29%
228.96%
017.63%
3+13.13%
Source: Finder survey by Pure Profile of 1112 Australians, December 2023

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.

BrandPDS wording and frequent flyer mentionsApply
Medibank logo"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."
Bonus
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ahm logo"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."
Bonus
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Zoom logo"We will pay you the value of any frequent flyer or similar air travel points 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."
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Fast Cover Logo"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."
Finder AwardBonus
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Insure4less logo"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."
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Travel insuranz logo"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."
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insureandgo"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."
Bonus
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Tick Logo"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."
Bonus
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World2cover logo"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."
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Covermore logo"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."
Bonus
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SCTI logo"[Covers consequential] loss arising from using frequent flyer points or similar loyalty programmes"
Finder Award
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Freely logo"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."
Bonus
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Travel with Kit logo"The loss of frequent flyer points you used to purchase an airline ticket if the airline ticket is cancelled and you cannot recover the lost points from any other source."More info
Travel with jane logo"The loss of frequent flyer points you used to purchase an airline ticket if the airline ticket is cancelled and you cannot recover the lost points from any other source."More info
Travel insurance saver logo"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."
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Easy travel insurance logo"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."
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1Cover Logo"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."More info
All clear travel insurance logo"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."
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American Express logo"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."More info
Boomers travel insurance logo"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."More info
Qantas logo"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."
Bonus
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RACV logo"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
Skiinsurance.com.au travel insurance logo"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."More info
Travel Insurance Direct logo"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
Webjet logo"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
Worldcare logo"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."More info

Note: This information was last updated August 2023

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.

Example:

Equivalent class advance purchase airfare = $1,000

Points lost = 5,000

Points redeemed to obtain original ticket = 20,000

Claimable amount = $1,000 x 5,000 divided by 20,000 = $250

Gary Ross Hunter's headshot
Editor, Insurance & Innovations

Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

Gary Ross's expertise
Gary Ross has written 730 Finder guides across topics including:
  • Health, home, life, car, pet and travel insurance
  • Managing the cost of living

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