How much airfare cost do I need to insure?

[Suzanne123]

Included in our "pre-paid non-refundable trip costs" will be our airfare (about $500 ea ) which will be purchased with a combination of credit card points and about $150 (each) in cash. They will be non-refundable airline tickets, although we could pay a change fee of $125 each to re-schedule at a later date if needed. Our credit card points cannot be re-deposited.

 

My credit card receipt will show only the cash portion of the ticket. Once I am booked, those points go away. However, if I can re-book with an additional $125 fee, are the tickets really considered "non-refundable"?

 

Can anyone tell me how much I should add to our "non-refundable pre-paid" trip costs to account for airfare? Should I add the full cost ($1,000), the cash portion of the cost ($300), or just the re-booking fee ($250)?

 

I did write to Travelsafe, the insurance I am considering, and they wrote "I received your email and you can only insure what is a pre paid non refundable expense to you." I'll admit, the more I read, the more confused I get.

 

Any ideas?

[cruiseco]

 

My credit card receipt will show only the cash portion of the ticket. Once I am booked, those points go away. However, if I can re-book with an additional $125 fee, are the tickets really considered "non-refundable"?

 

If you cancel your trip will the airline give you your money back? If the answer is "no" that's a non-refundable trip cost. "Non-refundable" is not the same as "changeable". The insurers don't give a hoot if the airline is willing to change your flights. If they won't actually give you your money back it's "non-refundable."

[Suzanne123]

Thanks so much for a clear, concise answer! I appreciate it.

[6rugrats]

Can anyone tell me how much I should add to our "non-refundable pre-paid" trip costs to account for airfare? Should I add the full cost ($1,000), the cash portion of the cost ($300), or just the re-booking fee ($250)?

 

Yes, you insure what you actually paid and what you will not get back if you cancel. If you will be out $1000 in cash if you cancel, that's what you insure.

 

I am a bit confused by your numbers though, as they seem to change in the middle of your post. If you paid only $150 each in cash ($300 total), and you will have to pay a change fee of $125 each ($250) to use the tickets in the future, your total loss would be only $550. I don't understand where the $1000 is coming from. It seems as if that may be what it would cost you to purchase your tickets with cash only. Your tickets may be "nonrefundable" but if you didn't actually pay this $1000, you can't insure it.

[Suzanne123]

You are correct. The tickets (I haven't bought them yet) hover around $500 ea in price. My credit card points will not be enough to get the tickets outright. I will have to pay about $150 cash ea. in addition to the points.

As I understand cruiseco, I will claim $300 as my pre-paid, non-refundable cost, as that is my only out-of-pocket cost for these tickets. I can't claim the equivalent money for the credit card points, and it makes no difference about a possible fee to reschedule the flights, as that change fee would not be pre-paid.

I hope I have that right.

[klfrodo]

The credit card points have zero cash value, therefore there is no value to insure against.

[Lou33]

I don't insure the cost of my airline tickets, especially if it bumps us up into the next higher cost basis. If you should need to cancel, then most airlines will give you credit for future flights if you pay a change fee.

 

If you insure the cost of your airline tickets, and you cancel and make a claim, the insurance may ask you to surrender your vouchers to them before they would reimburse you. Or they will only pay for your change fee. You can't double dip.

 

My reasoning is that I will not insure for something that I will never be able to collect on.