Earning frequent flyer points from travel insurance ↦Anyone travelling overseas will know they need to take out travel insurance. It's simply too risky otherwise and this unwanted cost is one travellers have to grin and bear. There is a way to take the sting out this expense and that is by clawing some bonus frequent flyer points and cashback when purchasing travel insurance.
We would not recommend buying insurance based purely on the points, but if you have decided that the companies below can meet your needs, then you can skim a little bit off the top in terms of frequent flyer points. Just don't let the points be the sole determining factor for a particular policy. All things being equal, however, you'll find the earned points and benefits vary by a wide margin.
The three options for earning points by buying a travel insurance policy are: Covermore (partnered with Virgin's Velocity program), Qantas Assure (Qantas points) and QBE (also Qantas points). So how much do you earn?
Covermore: 3 Virgin frequent flyer points per dollar
Qantas Assure: 1 Qantas frequent flyer point per dollar
QBE: 0.5 Qantas frequent flyer points per dollar
From this alone, booking with Covermore will earn 6 times more points than QBE. Interestingly, Qantas Assure uses QBE as its underwriter. So you get half the points compared to booking directly with QBE. However, you should still compare Qantas Assure with QBE pricing and policies as they can have different levels of coverage. In testing, we found that QBE was substantially cheaper in pricing for the same trip. A direct comparison was made complicated by some of the benefits differing between the policies. So, as always, double check to ensure the policy meets your needs.
The triple dip bonus for Covermore
With Covermore you also have the option to earn 8% cashback by using Cashrewards. Simply login or sign-up here with a free $5 credit at Cashrewards, search for Covermore and follow the link to the Covermore site. You won't pay more for following the links, so it's worth investigating. Use a Virgin credit card that earns 1.5 points per dollar and the amount of benefit you receive from this triple dip is significant. On a $200 policy, you would earn $16 cashback plus 900 Velocity points (worth $9), bringing the total value to $25. In percentage terms, this is the equivalent of a 12.5% discount. Note also that the points are based on what you spend at Covermore and hence you earn points on the entire $200, and not on $184 ($200 minus the $16 cashback).