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Written byAlani Asis
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3 años de experiencia en redacción de contenidos
Artículos en destacadas publicaciones financieras
Alani es una escritora independiente especializada en finanzas personales. Su objetivo es hacer que los temas complejos sean más accesibles a través de contenidos divertidos y digestibles.
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Edited byEvelyn Pimplaskar
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10+ years in insurance and personal finance content
30+ years in media, PR, and content creation
Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.
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Updated
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Table of contents
Travel insurance can repay your non-refundable travel costs — like airfare and hotel deposits — if you must cancel your trip for a covered reason, such as a medical emergency. But it won’t reimburse you for nonemergency or foreseeable events.
For example, if you book a Puerto Rico vacation during hurricane season and a named storm hits two days before your trip, your insurance probably won’t reimburse you.
If you need greater flexibility in your travel insurance, you may consider cancel for any reason travel insurance.
What is cancel for any reason travel insurance?
Cancel for any reason (CFAR) travel insurance is an optional coverage that will partially reimburse you if you must cancel your trip for any reason — even ones that a standard trip insurance policy won’t cover.
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]
CFAR vs. trip cancellation insurance
Both CFAR and trip cancellation insurance can help you recoup financial losses if you cancel your travel plans. But they work a bit differently. Here’s a comparison of the two types of travel coverage.
Details ▲▼ | Travel Insurance ▲▼ | CFAR ▲▼ |
|---|---|---|
| Cancelation reasons | Medical emergency, unexpected inclement weather, other specified reasons | Any reason not otherwise covered by travel insurance |
| Reimbursement amount | 100% | 50%–75% |
| Purchase window | Anytime after booking and before travel begins | Usually within two weeks of booking |
| Coverage type | Standard policy | Policy add-on |
| Cancellation window | 48 hours before trip begins | 48 hours before trip begins |
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. These are some exclusions:
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 14–21 days after your initial trip payment.[2]
Partially insured trips: You must insure all non-refundable trip payments.
Cost of CFAR travel insurance per trip
Travel cancellation insurance usually costs between 4% and 10% of the total cost of a trip. For example, if you book a $10,000 trip to Spain, your cost for cancellation insurance would be between $400 and $1,000.
A CFAR upgrade may increase your standard policy premium by 40%–50%. For example, say your travel insurance policy costs $250 without CFAR. In that case, your travel insurance plan may cost $350–$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.
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How Much Is Travel Insurance?
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 would pay $218 for a Travel Insured Worldwide Trip Protector policy. A CFAR travel insurance add-on would 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. But it’s not available for C&F’s basic policy, the Worldwide Trip Protector, Essential. You can only add it to the Deluxe or Platinum plan levels.[3]
C&F Travel Insurance plans typically include:
100% trip cancellation
100%–150% trip interruption, depending on policy level
$500–$2,000 in travel delay, depending on policy level
$50,000–$500,000 for accident and sickness medical coverage, depending on policy level
$200,000–$1 million toward medical evacuation and repatriation, depending on the coverage level you buy
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 $285. Adding CFAR coverage costs an additional $91, or about 32% of their policy’s cost without the add-on.
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
Seven Corners travel insurance plans provide some coverages that most travel medical insurance doesn’t. For example, it will cover Covid. Its Choice plan will cover pre-existing conditions with a waiver, up to $500,000 in accident and sickness 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, which is available with its Ultimate travel plan. This plan offers coverage for you and one child 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 four different cancel-for-any-reason insurance plans, from an affordable, basic policy to more comprehensive travel insurance plans.
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]
How to buy cancel for any reason travel insurance
You can usually add CFAR coverage when you purchase a travel insurance policy. Here’s a step-by-step guide to buying cancel for any reason travel insurance:
1. Gather your trip details
You need information like your travel dates, hotels, airlines, and tours. You’ll also need personal information for yourself and all your travel companions.
2. Compare multiple travel insurance quotes
If you book your travel online, you may see an offer from the travel company for travel insurance. It’s a good idea to compare multiple quotes before choosing a policy.
3. Provide your trip information
Once you’ve chosen a policy, you’ll need to provide specific information, including your full name, date of birth, address, and phone number. Depending on the company and where you’re traveling to, you may need to provide passport information as well.
4. Be sure to add CFAR coverage
Most insurance companies offer CFAR as an add-on, so be sure you’ve selected it as you go through the buying process.
5. Complete your purchase
While you can buy travel insurance anytime up to your day of departure, CFAR coverage usually comes with time conditions. Be sure you understand the policy’s limitations before you buy.
Should you buy CFAR travel insurance?
Travel insurance is almost always a good idea for anyone traveling abroad. It can cover emergency situations, including health emergencies. But cancel-for-any-reason coverage isn’t for everyone.
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%–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
Below, you’ll find answers to some of the most commonly asked questions about CFAR travel insurance by travelers.
How much does cancel for any reason travel insurance cost?
Cancel for any reason (CFAR) travel insurance usually costs between 40% and 50% of your travel insurance policy. It’s important to weigh the extra cost against the nature of your trip to determine if it’s worth purchasing.
What’s the difference between cancel for any reason and cancel any time?
Cancel for any reason insurance allows you to cancel your trip — at least 48 hours before your departure — for any reason at all. Trip interruption insurance can reimburse you if you need to cancel your trip at any time while you’re traveling.
Is trip cancellation/interruption insurance really necessary?
It depends. You’ll have to weigh the total cost of your trip against the risk of an illness, injury, or other covered event forcing you to cancel. Generally, if you cancel a trip, airlines, hotels, and tour providers may not refund the payments and deposits you’ve already made.
With trip cancellation or trip interruption insurance, you can recoup some — or even all — of your losses when you cancel a trip.
Do you need travel insurance for a flight?
If it’s an expensive flight and you know the airline won’t issue a refund if you must cancel, it may be a good idea to buy travel insurance. Travel insurance typically covers flight delays, cancellations, weather events, and other unforeseeable events that could cause you to cancel a flight.
Is travel insurance refundable if you don’t use it?
No. If you don’t need to use your travel insurance, you won’t be able to get a refund. All insurance is a trade-off between you and the insurer. You pay a premium in exchange for the insurance company taking on your financial risks.
Sources
- National Association of Insurance Commissioners. "Travel Insurance."
- SquareMouth Travel Insurance. "What is Cancel For Any Reason travel insurance?."
- Travel Insured International. "Optional Cancel For Any Reason."
- Travel Guard. "Cancel for Any Reason."
- Seven Corners. "Travel Insurance."
- Travelex Insurance Services. "Family Travel Insurance."
- Trawick International. "Cancel for Any Reason (CFAR) Travel Cancellation Insurance Plans."
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Alani Asis
Alani Asis is a personal finance freelance writer with nearly three years of experience in content creation. She has landed bylines with leading publications and brands like Insider, Fortune, LendingTree, and more. Alani aims to make personal finance approachable through fun, relatable, and digestible content.
Alani has been a contributor at Insurify since January 2023.
10+ years in insurance and personal finance content
30+ years in media, PR, and content creation
Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.
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