7 Quick Facts: Cancel for Any Reason Travel Insurance

Complete flexibility over your trip

Cancel for any reason travel insurance means that you decide if you want to cancel your trip or stick to your plans.

Cancel for Any Reason (CFAR) travel insurance means just what it says –– you can cancel your trip for any reason. From feeling unlucky to wanting to stay home with your new puppy, CFAR gives you the flexibility to change your mind when you need to cancel for reasons not covered by your typical travel insurance plan, tour operator, or cruise line.

The great thing? You won’t lose out on your full investment. With CFAR, you can get 75% of your lost expenses back.

But not all CFAR plans are created equal. How the benefit works and purchasing requirements vary by company. This alone can mystify travelers.

Here, we’re going to go over what you need to know about cancel for any reason, how it works, and how you can add the benefit to your plan. Once you have the basics down, you can easily find the best travel insurance for your trip.

7 Quick Facts About Cancel for Any Reason (CFAR)

  1. CFAR reimburses 75% of your lost prepaid travel expenses. However, you get 100% reimbursements if you have to cancel for one of the defined reasons covered by your plan like illness or injury.
  2. CFAR plans also come equipped with key trip protection benefits like travel delay, emergency medical care, evacuation, and baggage loss. 
  3. Fear of traveling is covered by Cancel for Any Reason plans (lookin’ at you, COVID).
  4. CFAR adds major flexibility to your plan – cancel for any reason. 
  5. You must buy CFAR within 7-21 days of your first trip payment. 
  6. You must cancel your trip 2 days before your departure date. 
  7. There is a massive rise in cancel for any reason travel insurance purchases due to the Coronavirus.

1. CFAR Plans Cover More Than Cancellations (for Any Reason)

Travel protection insurance plans offer an array of coverages, similar to many that can be found on travel insurance offered by your credit card. CFAR plans go farther by expanding coverage for any cancellation while still protecting the traveler from financial losses brought on by medical emergencies, travel delays, interruptions during your trip, and lost or stolen baggage. In short, these plans are designed to protect the traveler, their trip, and their belongings. 

The CFAR part? That just makes traveling way more fun and way less stressful by letting you … you know, cancel for any reason.

2. What you need to know about Trip Cancellation & Travel Insurance

Like we stated above, travel protection plans offer an array of coverage. 

But for basic trip cancellation plans (without CFAR) the cancellation must be due to what is known as a “covered reason” –– you know, a reason the insurance company says they’ll cover. If the loss is not covered, the claim will be denied. 

That’s where the CFAR benefit comes into play. This benefit is an optional add-on to trip cancellation plans. It provides reimbursement for lost trip payment when the reason for the cancellation was not covered by the trip cancellation benefit. 

Covered reasons typically look like the following:

  • A sickness that prevents you from traveling
  • Death of an immediate family member
  • An official hurricane warning is announced for your destination within 72 hours of your arrival

Things that are not covered by trip cancellation:

  • Death of a pet
  • Fear of contracting a virus (like Covid-19)
  • A breakup
  • Feeling unlucky
  • Changing your mind because things seem unsafe

3. How much money will I get back with Cancel for Any Reason travel insurance?

CFAR reimburses you up to 75% of your lost, prepaid travel expenses. That means you’ll get reimbursed for any money you can’t get back. 

Let’s look at it like this: you paid $5,000 for a cruise. You canceled two months before the cruise–– you just weren’t feeling it anymore. The cruise line gave you $2,000 in future cruise credits, but you lost $3,000 that you’d already paid. CFAR will reimburse you up to 75% of $3,000. That’s $2,250. Not bad, eh? What an awesome thing to have that flexibility because of Cancel for Any Reason.

4. How much does Cancel for Any Reason travel insurance cost?

The price of travel insurance is based on your age and the cost of your trip. That typically ends up being between 7-10% of your total trip cost. If you’re looking to add CFAR to your plan, expect to pay 40%-60% more in premium than your general travel insurance. 

If your premium was $100 for regular trip insurance, CFAR travel insurance will cost around $140-$160 dollars. 

Check out if CFAR travel insurance is worth the cost here.

5. Can I buy CFAR at any time?

No. You can’t add CFAR to your policy at any time. You need to buy your travel insurance and add cancel for any reason to the plan around the time you made your first trip payment. Each company has their own guidelines. But the industry standard is between 7-21 days.

If the company you bought your plan from has a 14-day window, you have 14 days to buy cancel for any reason from the day you made your first trip payment. If you try to buy 15 days after your first trip payment, you’ll be SOL (straight outta luck).

6. When must I cancel my trip?

You must cancel 2-3 days prior to your scheduled departure date to receive reimbursement. This is one caveat all travelers should know about when looking to add CFAR to their plan. 

However, the Trip Cancellation coverages cover you up to the day of departure in most plans. You can get up to 100% of your trip costs back if you are injured, sick, or even get in a car accident on the way to the airport and miss your flight!

7. Do I have to cover the full cost of my trip?

Yes. Well, most of the time. In most states, regulations require you to cover the full cost of your trip. What does that mean? Any prepaid expenses must be entered into your total trip cost. 

If you spend $3,000 on your trip but only insure $2,500 of it, then you won’t be covered by CFAR. That’s even if you purchase CFAR travel protection!

But what if I don’t know the total cost of my trip when I buy my plan? Great question! Insure what you know you’ve spent, and simply update your travel insurance plan as you go. Some plans require that any changes be made within 7-21 days of those changes, so make sure you pay attention to your plan requirements. 

Should I buy Cancel for Any Reason travel insurance?

We believe that CFAR is powerful travel insurance that gives a lot of flexibility and control to the traveler. Because we’re veterans in the industry, we’ve seen a horror story or two where CFAR would have saved the day. 

The more often you travel, the more you open yourself to the possibilities of cancellation for obscure reasons that would otherwise not be covered. Don’t think of it as something you buy once when you travel but every time you travel. It only takes one claim and the benefit pays for itself, kind of like your auto or homeowners insurance! 

However, we’ve seen a rise in CFAR purchases, because the coronavirus pandemic has changed the travel landscape. 

More travelers than ever are concerned about the uncertainty of any future travel plans. However, how much money you are willing to spend and willing to lose should factor into your decision. If your trip cost is fairly low, and you’re not worried about losing that money, you may not want to invest in CFAR. However, if you can’t afford to lose your travel investment, then CFAR might be the best option for your own security.