What can be covered: If a traveler misses their flight due to a traffic accident on the way to the airport there may be travel insurance coverage on some policies. Travel insurance providers will require official documentation of the accident during the claims process.
The Overbooked Flight - Often unbeknown to travelers, airlines overbook flights on a regular basis. If an airline 'bumps' a traveler from a flight because it's full, they will often provide a voucher. However, a voucher for future travel doesn't always help if a traveler has a connecting flight or cruise that they will miss. Any penalties incurred as a result of being bumped from an overbooked flight aren't covered by travel insurance.
What can be covered: If a flight is delayed due to a mechanical failure or bad weather, travel insurance can pay travelers back for their meals, hotel accommodations and local transportation during their delay. If the flight is cancelled or delayed for a significant amount of time, some travel insurance providers can allow the traveler to cancel their trip get their money back.
Flights Paid With Frequent Flyer Miles - While travel insurance can provide coverage in many different situations, it can't pay back reward points or frequent flyer miles, because there is no dollar value to associate with the points.
What can be covered: Taxes and fees associated with the air miles or reward points may be covered. Some providers will also cover fees to rebank miles.