Nobody intends to cancel a vacation, business trip, or other travel plans. Unfortunately, life happens. It doesn't matter if it's caused by an unexpected illness, political unrest in your destination country, or something else. If you don't have an effective travel insurance policy, you could lose all your nonrefundable costs. For international or long-trip travelers, this could be thousands of dollars.
Regular travel insurance will cover cancellations as long as the cause falls within guidelines. Unfortunately, this leads to a lot of unexpected denials. People assume travel insurance covers everything only to find out that their family emergency, illness, etc. isn't included. This is where cancel for any reason coverage comes in.
Cancel for any reason travel insurance overview
Cancel for any reason insurance is a type of travel insurance rider that allows you to cancel your trip and get reimbursed for nonrefundable travel costs. CFAR insurance generally increases your premium by 40% to 50%.
Travel insurance is a type of insurance policy that protects you from various losses that can occur while on a trip. Though most standard policies cover trip cancellation, it's typically limited to specific scenarios — like illness or a natural disaster.
If you add on cancel for any reason (CFAR) coverage, you can cancel for virtually anything as long as you do it within the required timeframe. You typically need to cancel at least two days before the trip is scheduled to start.
"The cancel for any reason benefit means you can nix your trip for reasons other than those specifically covered in your plan," says Jeff Rolander, director of claims at Faye, a travel insurance provider. "Adding CFAR protection to your travel insurance plan helps give you peace of mind knowing you have the ability to cancel your trip if you simply don't feel like going."
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Comparing CFAR with standard travel insurance
Standard trip cancellation insurance covers you for specific, predefined reasons, such as illness, injury, or the death of a family member. On the other hand, CFAR insurance provides a broader scope of coverage, allowing you to cancel your trip for any reason that's not listed in the policy. However, CFAR typically comes at a higher premium and usually offers partial reimbursement of your trip cost.
Benefits of CFAR insurance
Life is messy and often unplanned. While many countries are reopening and reducing restrictions, that could change anytime. This is complicated without including family emergencies, illness, and other unexpected complications. Cancel for any reason insurance takes the mystery out of things.
4 Myths about cancel for any reason travel insurance
1. CFAR is worth it for any trip, no matter the cost
CFAR increases the cost of travel insurance quite a bit, so it may not be worth it on shorter, less costly trips or ones you're very unlikely to cancel (like a trip to your own wedding, for example).
If you're taking a particularly long or expensive trip, it might be worth it — especially if there's some concern you may need to cancel. If you want the freedom to cancel due to COVID-related concerns, it can also be smart.
"CFAR is worth the money if a traveler has a very specific concern that can't be covered otherwise," Moncrief says. "CFAR proved popular throughout the pandemic as a way for travelers to prepare for the constantly changing travel landscape."
2. CFAR costs a ton of money
While CFAR coverage does make your travel insurance more expensive, you'll still pay around $100 or less in most cases. As you can see in the chart above, the typical CFAR policy costs about $60 to $130 — in addition to your basic travel insurance premium per person.
3. My credit card offers trip cancellation coverage, so CFAR is never worth it
While many credit cards do come with travel benefits, coverage is often limited in scope. The Chase Sapphire Preferred® Card, for example, won't reimburse you for trips canceled due to a "change in plans or financial circumstances." The Platinum Card® from American Express covers cancellations due to injury, sickness, inclement weather, terrorist actions, and other reasons covered by most basic travel insurance plans. Still, in comparison, CFAR offers much wider coverage and protection.
4. You can buy CFAR at any point before your trip begins
You have to purchase CFAR coverage soon after booking your trip. Most companies require you to purchase within 15 to 21 days of putting down an initial deposit. After that point, you will be unable to add CFAR coverage to your policy.
CFAR travel insurance cost
The cost of CFAR travel insurance varies by provider and depends on the age of the travelers, the destination, the duration of the trip, and other details. You can generally expect to pay between 40% to 50% more when adding CFAR coverage.
Here's a look at how much CFAR coverage costs at three different travel insurance providers. These quotes are for a $5,000 weeklong trip to Mexico for one person (30 years old).
| Travel Insured International | Generali Global Assistance | Seven Corners | |
| Cost of travel insurance | $246 | $262.29 | $146 |
| Additional cost of cancel for any reason insurance | $108.24 | $131.15 | $61.32 |
| Total cost of insurance (regular + cancel for any reason) | $354.24 | $393.44 | $207.32 |
| Policy cost increase as a percentage | 44% | 50% | 42% |
How to purchase CFAR insurance
Purchasing CFAR insurance involves selecting the right provider and understanding the terms of the policy. It's essential to compare offers and read the fine print to ensure the policy meets your needs.
If you do opt for cancel for any reason coverage, make sure to shop around for your policy. Every provider offers different plans and fees. Comparing at least a few options can help ensure you get the best rate and coverage for your needs.
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- Policy coverage includes most pre-existing health conditions
- Generous medical and evacuation amounts for peace of mind
- COVID coverage included by default on all insurance plans
- Offers a wide range of plans for various budgets and travel needs
- Some plans offer CFAR, “cancel for work reasons,” financial default, and unemployment coverage
- Limited add-on coverage options
- Baggage loss and delay coverage is low compared to competitors
Tin Leg travel insurance offers eight travel insurance plans to meet the unique needs of travelers.
Tin Leg- Tin Leg was founded in 2014 by the travel insurance industry experts at Squaremouth. Designed to meet the most common needs of travelers, these policies offer comprehensive Trip Cancellation and Trip Interruption benefits, and a range of Emergency Medical and Medical Evacuation limits.
- Options to cover sports equipment
- Option to increase medical coverage
- Can cancel up to 48 hours before travel when CFAR option is purchased
- Affordable coverage for budget-conscious travelers
- Includes generous baggage delay, baggage loss, and trip delay coverage
- Optional "adventure activities" bundle available for riskier activities
- Pricier than some competitors with lower coverage ceilings
- Some competitors offer higher medical emergency coverage
Travelex travel insurance is one of the largest travel insurance providers in the U.S. providing domestic and international coverage options. It offers Essential, Advantage, Ultimate, and Travel Med Go options. Read on to learn more.
Travelex Travel Insurance- Optional CFAR insurance available with the Ultimate plan
- Travel delay insurance starting at $500 with the Advantage plan
- Emergency medical and dental coverage starting at $15,000
FAQs
What exactly does CFAR insurance cover?
Cancel For Any Reason (CFAR) insurance allows you to cancel your trip for any reason that is not covered by standard travel insurance. This could include personal reasons like a change in your work schedule, fear of traveling due to a recent event, or simply changing your mind. CFAR usually reimburses a percentage of the non-refundable trip costs, typically around 50-75%, depending on the policy.
Is CFAR insurance worth the additional cost?
CFAR insurance can be worth the additional cost if you desire flexibility and peace of mind. It's particularly valuable if you're investing a significant amount of money into your trip or if you anticipate possible changes or uncertainties leading up to your departure. However, it's essential to weigh the cost against the potential benefits and consider your personal situation, including your risk tolerance and financial capacity.
Can I purchase CFAR insurance after booking my trip?
Generally, you must purchase CFAR insurance within a set period after making your initial trip deposit, often within 14-21 days. However, the specific timeframe can vary depending on the insurance provider. Check the policy details or consult with the insurance provider to understand the time restrictions for purchasing CFAR coverage.
Partner offer: Find the best travel insurance policy for your needs and avoid costly surprises. Learn more about travel insurance here.
Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Trip Delay Insurance, Trip Cancellation and Interruption Insurance, and Cell Phone Protection Underwritten by New Hampshire Insurance Company, an AIG Company. Global Assist Hotline Card Members are responsible for the costs charged by third-party service providers. If approved and coordinated by Premium Global Assist Hotline, emergency medical transportation assistance may be provided at no cost. In any other circumstance, Card Members may be responsible for the costs charged by third-party service providers. Extended Warranty, Purchase Protection, and Baggage Insurance Plan Underwritten by AMEX Assurance Company. Car Rental Loss & Damage Insurance Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.
