What Is Cancel For Any Reason (CFAR) Travel Insurance? (2024)

Travel insurance offers financial protection for unforeseen events related to your trip, like loss of luggage, trip cancellations, and flight delays. Cancel for any reason (CFAR) coverage offers reimbursements if you need to cancel your trip for reasons not covered by your trip cancellation insurance.

Travelers who prefer greater flexibility in their travel insurance may benefit from adding this coverage to their policy. Here’s what you need to know about CFAR travel insurance.

Understanding cancel for any reason travel insurance

Say you cancel your trip for covered reasons, like an unexpected natural disaster or a serious injury. In that case, trip cancellation coverage offers reimbursements for all non-refundable trip costs (such as airline, hotel, etc.).

Meanwhile, CFAR travel insurance is an optional upgrade that increases trip cancellation coverage. It offers reimbursements between 50% and 75% on non-refundable trip costs if you cancel for virtually any reason, like personal emergencies or fear of traveling.^[1]

What CFAR covers

CFAR insurance covers trip cancellations for any reason — even a known event like forecasted harsh weather. Below are a few other common cancellation scenarios that CFAR insurance covers:

• Change of plans

• Fear of travel

• Family emergencies

• Financial hardship

• Current events

• Disease outbreaks

• Work-related situations

What CFAR doesn’t cover

While you can use your CFAR policy for almost any reason, you must use it correctly to get a refund on your canceled travel plans. Some exclusions include:

• Last-minute cancellations: Most insurers require you to cancel your trip at least 48 hours before your departure date. Trip interruption offers coverage if you have to end your trip shortly after it has started.

• Late purchases: Most travel insurance companies only allow you to purchase CFAR coverage within 14 to 21 days after your initial trip payment.^[2]

• Partially insured trips: You must insure all non-refundable trip payments.

Best companies for CFAR travel insurance

A handful of travel insurance companies exclude CFAR travel insurance coverage, as it increases liability. If you’d like to add CFAR travel insurance to your policy, consider checking out C&F Travel Insured, Travel Guard, Seven Corners, Travelex, and Trawick International travel insurance.

Best overall: C&F Travel Insured

C&F Travel Insured is the best travel insurance for CFAR coverage due to its affordable rates and high reimbursement limits. Insurify found that a 35-year-old male with a $4,000 trip to France will pay $218 for a Travel Insured Worldwide Trip Protector policy. A CFAR travel insurance add-on will cost this traveler $96, or about 44% more than their trip insurance cost.

Travel Insured CFAR insurance also reimburses you 75% of your trip cost. However, you can only add CFAR to its most comprehensive policy, the Travel Insured Worldwide Trip Protector.^[3]

Here’s a glimpse of what you’ll get with this travel insurance plan:

• 100% trip cancellation

• 150% trip interruption

• Up to $1,000 in travel delay

• $100,000 in medical coverage

• $1 million in medical evacuation coverage

If you make any additional travel plans after purchasing CFAR insurance, you must insure the full cost of those plans within 21 days of your payment date. This coverage is only available no later than 48 hours before your scheduled departure date.

Best for cheap coverage: Travel Guard

Travel Guard is an excellent option for travelers who want additional protection within their budget. For a 35-year-old male with a $4,000 trip to France, a Travel Guard Deluxe policy costs $275. Adding CFAR coverage costs an additional $87, or about 32% of their policy’s cost without the add-on. While budget-friendly, Travel Guard’s CFAR insurance only reimburses 50% of your travel cost.

In order to qualify for the CFAR upgrade, all trip costs must have coverage at the time of purchase. You must also buy CFAR within 15 days of your first trip deposit. If you need to use it, you’ll have to cancel your trip no less than 48 hours before your departure date.^[4]

Best for medical coverage: Seven Corners

Suppose you get injured abroad and can’t use your health insurance. Travel insurance medical coverage can kick in to pay for medical care and emergency evacuation. Seven Corners offers pre-existing conditions waivers, up to $500,000 in medical expenses, and up to $1 million in medical evacuation coverage.

You must purchase CFAR insurance within 20 days of your initial trip deposit and insure the cost of your entire trip within 15 days. Additionally, if you want to insure any other travel arrangements, you must do so within 15 days of paying for them.

You must cancel your trip two or more days before departure to qualify for CFAR coverage. It’s worth noting that this add-on excludes coverage for financial loss if a travel supplier goes out of business.^[5]

Best for families: Travelex

If you’re planning your next family vacation, consider Travelex’s Family Travel Insurance. This plan offers coverage for you and all children younger than 17 at no extra charge. In addition to CFAR at a 75% refund up to $7,500, you can add adventure sports and car rental collision to your policy.^[6]

The insurer requires you to insure your entire trip and purchase your CFAR plan within 15 days of your trip’s initial deposit. Trips longer than 30 days aren’t eligible for this add-on.

Best for customizability: Trawick International

Trawick International offers seven different trip cancellation insurance plans, from an affordable, basic policy to more comprehensive travel insurance plans. You can add CFAR coverage to four of its travel insurance policies.

Trawick International — like other insurers that offer CFAR coverage — requires you to purchase the add-on within a certain number of days from your trip’s first deposit or final payment date. This time frame will vary based on the plan you choose. Additionally, if you must cancel your trip, you must do so at least two days before departure.^[7]

Cost of CFAR travel insurance per trip

A CFAR upgrade may increase your standard policy premium by 40% to 50%. For example, say your travel insurance policy costs $250 without CFAR. In that case, your travel insurance plan may cost $350 to $375 after CFAR coverage.

Is CFAR travel insurance worth it?

CFAR plans may be worth the additional cost if you foresee any potential reasons to file a claim for reasons not covered by your trip cancellation insurance. For example, say you’re traveling to a country with political unrest. Your CFAR coverage partially reimburses you for travel costs if you opt out of your trip due to growing tensions in the destination you’re traveling to.

Factors to consider when buying CFAR travel insurance

Before purchasing CFAR travel insurance, consider the following factors:

• Cost of trip: If you’re going on an expensive trip, CFAR can provide financial protection if you change your mind. In contrast, you may not want to spend the extra money on CFAR insurance for a low-cost, domestic trip — especially if you can quickly recoup financial losses after cancellation.

• Type of trip planned: While standard trip cancellation insurance covers many unforeseen reasons, it doesn’t cover personal reasons like fear of travel. CFAR may come in handy if you’re heading to a country with a high degree of political or health-related uncertainty and decide to opt out of your trip.

• Personal reasons: If you foresee any personal matters, conflicting with your trip, such as a pregnancy or job-related issue, it may be a good idea to include CFAR insurance.

• Reimbursement: With CFAR, most insurers will reimburse 50% to 75% of your prepaid, non-refundable travel costs if you cancel. You’ll want to choose an insurer that provides enough coverage based on your circumstances and the nature of your trip.

• Cost of coverage: It’s important to weigh the cost of adding CFAR insurance against the type of trip, the price of your trip, and the likelihood you’ll need this coverage to determine if it’s a worthwhile financial decision.

Cancel for any reason (CFAR) travel insurance FAQs