Airline miles, hotel points, travel vouchers, and rewards are generally not assigned a cash value under most travel insurance policies. However, taxes, fees, upgrade costs, and other prepaid, non-refundable expenses you paid out of pocket may be eligible to insure. Coverage varies by policy and provider.
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"Should I Insure Airline Miles, Hotel Points, Travel Credits, or Vouchers?"

Many travelers today use rewards to help pay for their vacations. Whether you've redeemed airline miles, hotel loyalty points, credit card rewards, or travel vouchers, you may be wondering: "Can I insure those too?" The most important takeaway: most travel insurance policies insure your prepaid, non-refundable financial investment—not the value of airline miles, hotel points, or reward programs. However, the cash expenses you paid out of pocket may still be eligible for coverage. Understanding the difference can help you choose the appropriate insured trip cost.

What Can Usually Be Insured?
Many travelers redeem points but still pay cash for expenses such as:

  • Airline taxes and government fees

  • Resort or hotel fees

  • Cruise port charges

  • Seat upgrades

  • Upgrade certificates with cash payments

  • Tours and excursions

  • Prepaid transportation

  • Hotels

  • Rental cars

These out-of-pocket, prepaid, non-refundable expenses may often be included in your insured trip cost, depending on your policy.

What Typically Isn't Insured?
Most travel insurance policies do not reimburse the value of:

  • Airline miles

  • Frequent flyer points

  • Hotel reward points

  • Credit card reward points

  • Loyalty program points

  • Companion certificates

  • Promotional rewards

Many loyalty programs have their own rules regarding redepositing points or issuing travel credits if a trip is canceled.

A Real-World Example
A traveler uses 120,000 airline miles to book round-trip Business Class flights to Japan.
Although the airfare itself is paid with miles, the traveler still pays:

  • $425 in airline taxes and government fees

  • $350 for seat upgrades

  • $2,800 for prepaid hotels

  • $1,100 for guided tours

When purchasing travel insurance, the traveler insures the eligible prepaid, non-refundable cash expenses—not the estimated value of the airline miles.

If a covered cancellation occurs, the travel insurance claim would be reviewed according to the policy terms and the insured financial loss.

What About Travel Credits or Vouchers?
If you're using:

  • Airline travel credits

  • Cruise credits

  • Future travel vouchers

  • Promotional certificates

it's important to understand how they work before purchasing travel insurance.

Some travel suppliers may reissue credits if your trip is canceled, while others may not.

If a travel supplier is already offering you a future travel credit or refund, you generally should not insure that portion as a non-refundable expense.

If you're unsure what amount should be insured, we're happy to help you review your itinerary.

Frequently Asked Questions

Question

Answer

Can I insure airline miles?

❌ Generally, no.

Can I insure hotel reward points?

❌ Usually not.

Should I insure taxes and fees I paid?

✅ Often, yes, if they are prepaid and non-refundable.

Can I insure prepaid excursions purchased with cash?

✅ Generally, yes.

What if I'm using travel credits?

It depends on whether those credits are refundable or reusable.

💡 ICI Traveler Tip
Before purchasing travel insurance, separate your trip into two categories:

1. Rewards and points (which generally don't have an insurable cash value), and
2. Your actual out-of-pocket, prepaid, non-refundable expenses (which may be eligible for coverage).

This can help you insure the correct trip cost and avoid over- or under-insuring your trip.

⚖️ Important Information

This article is provided for general informational purposes only and does not guarantee coverage or benefit eligibility. Travel insurance plans vary by provider, and all benefits are subject to the terms, conditions, limitations, and exclusions of the policy purchased.

ICI Traveler is not the insurance carrier or claims department and cannot determine claim outcomes. All coverage decisions, claim approvals, and reimbursements are made solely by the licensed insurance company or claims administrator identified in your policy documents.

We encourage every traveler to review their complete policy documents to fully understand their coverage.

💙 Need Help? The ICI Traveler Team Is Here for You

We're here when you need us. Before reaching out, we encourage you to explore our 🔎 Help Center, where you'll find answers to hundreds of common travel insurance questions, coverage explanations, travel tips, and policy guidance.

📧 For general questions and non-urgent support:
support@icitraveler.com

📞 For urgent questions or assistance before or during your travels:
(800) 576-2674 / (719) 573-9080

Trusted travel insurance guidance for every destination, every traveler, every journey.