Best Travel Insurance Strategy for Award Trips
This guide is for frequent travelers and points enthusiasts booking award flights with miles. It explains how to actually protect trip value, what choices matter (and which don't), and how to combine insurance, card benefits, and miles program policies for minimal out-of-pocket risk if plans go wrong.
Miles Covered?
Rarely by insurance
Best Card Benefits?
Chase Sapphire, Amex Plat/CSR
Award Cancel Fee
$0-150 (varies by program)
Cash Refund
Only for taxes/fees
Award Flight Insurance
What Travel Insurance Really Protects on Award Bookings
Most travel insurance—including credit card coverage—reimburses only cash expenses lost, not the points or miles spent. If you need to cancel, airlines just redeposit miles (sometimes with a fee). Know the policies before you pay for additional protection.
Travel Insurance vs. Card Benefits vs. Award Program Policy
| Key Issue | Credit Card Insurance | Third-Party Insurance |
|---|---|---|
| Reimburses Miles Lost? | Standard approach for best travel insurance strategy for award trips | Improved approach for best travel insurance strategy for award trips |
| Reimburses Taxes/Fees? | Yes, if covered event and paid on card | Yes, sometimes (minus deductible) |
| Covers Award Redeposit Fee? | Sometimes (check benefit guide) | Improved approach for best travel insurance strategy for award trips |
| Need to File Paperwork? | Standard approach for best travel insurance strategy for award trips | Almost always |
| Protected If Ticket Booked With Points (Not Cash)? | Cash portion only | Cash portion only |
Steps to Protect Your Award Trip Investment
Follow these actions to structure award bookings for the best protection and minimal hassle.
Book with Transferable Points Programs
Prefer booking through programs like Chase Ultimate Rewards or Amex Membership Rewards when possible, as they often allow easier points redeposit.
Flexible bank programs may waive redeposit fees or expedite points returns on cancellation, especially if you hold their premium cards.
Use a Premium Travel Credit Card for Fees
Pay all taxes and surcharges with a card offering robust trip insurance.
Only the cash portion paid with your credit card is covered by its insurance. Top cards include Chase Sapphire Reserve and Amex Platinum.
Check Award Program Policies
Know the redeposit and change rules for your miles.
Some programs (like United) now allow free award redeposits; others still charge up to $150. Factor this into destinations you book.
Double-Check Card Protections on Awards
Not every card benefit triggers on mileage tickets.
Look for language in your card’s guide to benefits about 'award travel' or 'frequent flyer mile tickets.' Often, only the eligible cash portion is insurable.
Consider Third-Party Cancellation Protection (Judiciously)
Optional: only if you face high nonrefundable out-of-pocket costs.
Standalone trip insurance is rarely needed if you're just risking points, but can help with nonrefundable hotels, tours, or large tax surcharges.
What’s Covered vs. What Isn’t
Often Covered
- Taxes and surcharges paid with a credit card
- Change/redeposit fees in covered emergencies (sometimes)
- Trip delay costs (hotels, meals) if delay criteria met
Usually Not Covered
- Points or miles value lost
- Lost upgrade certificates
- Award availability rebooking
- Differences between taxes on new and old flights
Award Trip Insurance in Action
You Cancel a Mileage Trip for Family Emergency
Situation: Booked United award, paid $80 taxes with Sapphire Reserve. The program redeposits miles for $0 fee; card reimburses taxes if emergency is covered.
Move: Submit benefit claim form to Chase for the $80, and miles reappear in account within a week.
Partner Airline Changes Your Schedule
Situation: Booked ANA with Aeroplan miles. Massive time change and partner isn’t responsive.
Move: Contact Aeroplan, not ANA, to request refund/rebooking under their award rules.
Non-Refundable Hotel on an Award Trip
Situation: Award flight, paid a non-cancellable hotel on a capped-value travel card.
Move: Third-party insurance (not credit card) needed for hotel protection if cancellation is outside covered card terms.
FAQ
Award Trip Insurance FAQ
Does travel insurance reimburse the value of lost points or miles?
No. Insurance typically only covers cash expenses like taxes or surcharges.
Which credit cards have the best award trip protection?
Chase Sapphire Reserve/Preferred, Amex Platinum, and CapOne Venture X are top options.
Do airline award bookings ever get refunded in cash?
Only the taxes and fees you paid—not the points value. Miles are usually redeposited.
Can I buy extra insurance to protect my points?
Very rarely, and it’s generally a bad value. Focus on program flexibility instead.
Keep exploring best travel insurance strategy for award trips
When to Redeem Through a Card Travel Portal vs Transfer Points Out
Learn when to redeem credit card points through a card travel portal vs transferring to airlines or hotels. Boost value on your next international trip.
How to Recover When an Award Itinerary Changes
Don’t lose your trip when an airline changes your award itinerary. See how to protect points, secure new flights, and avoid surprise hassles.
How to Use Airline Miles for One-Way Trips
Unlock the best value for your airline miles with smart one-way bookings. This guide covers alliance tricks, fees, transfer bonuses, and booking tips.
Ready for Stress-Free Award Travel?
After setting up your protection, revisit trip details anytime. For less airport hassle, consider Global Entry sooner and cut security queue pain, too.