What is Cancel for Any Reason Travel Insurance?
Cancel for any reason (CFAR) travel insurance plans provide trip cancellation coverage for any reason not covered by standard travel insurance plans. For instance, a standard travel insurance plan can cover trip cancellation due to a death in your family or personal illness, but not due to your dog getting sick or because the forecast of your destination is calling for a week of rain. Cancel for any reason travel insurance can cover these situations.
What is Covered under Cancel for Any Reason Travel Insurance?
There are many common reasons, as described below, for which people need to cancel their trip. However, they are not covered by the regular trip cancellation insurance. Cancel for any reason travel insurance can be helpful in situations like these by providing trip cancellation coverage:
- Change of mind – You simply change your mind and decide to cancel your trip.
- Unavailability of travel documents – You are unable to get your passport/visa in time to travel.
- Work-related reasons – You suddenly get tasked with a major project at work and can’t get away.
- Weather – The weather forecast looks too cold/rainy/etc. for you to have a good time.
- Family reasons – Your cousin’s wedding is taking place on the same day as your scheduled departure.
- Travel fears – Recent developments in the destination have made you fearful of traveling there.
- Epidemics/pandemics – A situation such as the COVID-19 pandemic makes you feel unsafe about travel.
- Other miscellaneous reasons – Your pet became sick, your significant other broke up with you, and many other reasons.
What is Not Covered Under Cancel for Any Reason Insurance?
Despite its name, cancel for any reason insurance is not really any reason, any time, full refund unconditionally and no questions asked. There are some restrictions, as described below.
- Reimbursement percentage – You will not receive back 100% of your trip costs if you cancel for a reason not covered by a standard plan. Most cancel for any reason plans will reimburse you 50% to 75% of your prepaid, nonrefundable trip costs.
- When to purchase – You must purchase insurance coverage within a certain duration of your initial trip deposit. This varies from 24 hours to 21 days, depending on the plan.
- Prepaid trip costs - You must insure all your prepaid trip costs. This is not only the non-refundable portion of your prepaid trip cost, but the entire prepaid trip cost that is subject to any penalty before your departure date.
- Cancellation - You must cancel your trip at least 2 days or 48 hours in advance to take advantage of cancel for any reason benefits.
Cost of Cancel for Any Reason (CFAR) Travel Insurance
Cancel for Any Reason (CFAR) travel insurance is generally offered as an optional add-on, making it more costly than standard trip cancellation coverage. Depending on the insurance provider and coverage specifics, CFAR coverage can increase the base price of a travel insurance policy by about 40% to 60%. Additionally, travelers should expect to pay a premium to access the flexibility CFAR provides. For most plans, the coverage cost varies based on the insured trip amount, traveler age, and trip length.
Insurance providers typically require travelers to insure 100% of their prepaid, non-refundable costs to qualify for CFAR, ensuring a partial reimbursement of about 50% to 75% of these costs if they cancel. Because of its time-sensitive nature, CFAR must be purchased within 10 to 21 days of the initial trip deposit. While it adds to the overall travel insurance cost, CFAR coverage can be invaluable for travelers who seek peace of mind and maximum flexibility in uncertain times.
Best Cancel for any Reason Insurance Plans
| Claims Administrator | Plan | Option | Rules | Maximum Refund Amount |
|---|---|---|---|---|
| International Medical Group | Travel LX | Optional upgrade: 1.5 times the plan cost | Purchase within 20 days of initial trip deposit Insure 100% of pre-paid trip costs | 75% |
| Trawick International | Safe Travels Voyager | Optional upgrade: cost varies by state | Purchase within 21 days of initial trip deposit Insure 100% of pre-paid trip costs | 75% |
| Trawick International | Safe Travels Journey | Optional upgrade: cost varies by state | Purchase within 14 days of initial trip deposit Insure 100% of pre-paid trip costs | 50% |
How is CFAR Different from trip cancellation insurance?
While both standard trip cancellation insurance and CFAR insurance can cover trip cancellation, standard trip cancellation insurance only covers trip cancellation for the covered reasons listed in the plan’s policy documents. CFAR travel insurance allows you to cancel for any reason you like and receive a partial refund, so long as you do so within the rules of the CFAR plan you’ve purchased.Is Cancel for Any Reason Insurance Worth It?
Yes, CFAR travel insurance is often well worth the investment, especially for travelers who value flexibility or are planning trips in uncertain conditions. While CFAR coverage costs more than standard policies, it grants the unique benefit of allowing travelers to cancel for any reason—not just the limited reasons typically covered by travel insurance, like illness or natural disasters. This flexibility is ideal for situations that might cause hesitation, such as unexpected work obligations, safety concerns at the destination, or even personal matters like a change of heart about the trip. In a world where circumstances can shift rapidly—from travel restrictions to health advisories—CFAR offers peace of mind by providing a fallback option without the burden of strict requirements. Although it doesn’t offer a full reimbursement (with refunds usually between 50% and 75%), CFAR can prevent significant financial losses on non-refundable costs. For travelers who prefer having full control and want the ability to change their plans last minute, CFAR travel insurance provides an essential layer of protection.How Late Can You Buy CFAR Insurance?How Late Can You Buy CFAR Insurance?
Cancel for Any Reason (CFAR) insurance must be purchased within a specific timeframe after making the initial trip deposit, typically within 10 to 21 days, depending on the insurance provider. This requirement exists because CFAR is an add-on benefit designed to enhance standard trip cancellation coverage, and insurers want to ensure travelers commit to coverage shortly after booking. Missing this purchase window means CFAR will no longer be available as an option, and travelers will need to rely on standard cancellation policies that cover only specific reasons.
Additionally, CFAR policies have strict requirements for canceling a trip to qualify for a refund. Most policies mandate that travelers cancel at least 48 to 72 hours before departure to receive reimbursement. This window ensures that CFAR remains an option for last-minute changes but requires enough notice to prevent excessive losses for insurers. For those considering CFAR, it’s important to act quickly after booking to secure this coverage and fully understand the cancellation deadlines to use it effectively.
Tips Before You Buy
Before you buy CFAR insurance, make sure you’re able to answer these five questions with a “yes.”
- Do I understand the terms and conditions of the policy? Cancel for any reason insurance has certain restrictions you must qualify for in order to utilize the benefit. These can include purchasing your insurance within a certain timeframe after you’ve booked your trip. The exact restrictions will vary depending on the plan you purchase, so be sure to read the policy documents thoroughly.
- Do I understand that I will not be reimbursed for the total trip cost? As we touched on above, most CFAR travel insurance plans will only reimburse you for 50% to 75% of your insured trip cost when using the benefit. Of course, if you have to cancel for a reason that’s covered by the plan you’ve purchased, you can still be reimbursed the entirety of your insured trip cost.
- Do I know that I can’t cancel at the absolute last minute? Cancel for any reason travel insurance typically allows you to cancel your trip up to two days (48 hours) before your departure time. So, if you’re the type of person who may decide whether or not to travel the morning of your trip, CFAR insurance might not be for you.
- Is the extra expense worth what I could stand to lose? There’s no doubt about it, CFAR coverage adds significant expense to travel insurance. However, if you’re taking a trip that you’ve saved for over a long time, the cost of cancel for any reason travel insurance can be well worth it to protect your money. On the other hand, if the trip you’re taking is a very minor financial outlay for you, forgoing CFAR coverage might be the better option. We want you to purchase the best coverage for your needs, not the most expensive.
- Do I know that I can get help if I’m unsure before I purchase? We have licensed, trained agents in the USA standing by to answer any questions you may have via phone, chat, or email. Please do not hesitate to reach out if you have any questions.
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