When TravelSafe Insurance introduced the first Cancel For Any Reason, we knew it would be revolutionary but had no idea we would be pioneering the travel insurance industry. Time and time again, this benefit has proven itself to be the go to benefit for situations that were not easy to fathom.
With political tensions worldwide and the recent development with the Coronavirus (COVID-19), many travelers are curious as to how they can insure their trip for any and all possibilities. That is why, this month, we decided to cover TravelSafe’s Cancel For Any Reason benefit in our travel insurance benefit spotlight.
Cost of Coverage
The cost of travel insurance is dependent on two factors: your trip cost and age. Generally between 5% and 11% of your total trip cost is what you will be looking to spend, and with Cancel For Any Reason, you are usually around 7%.
What the Benefit Includes
● Trip Cancellation for non refundable and prepaid travel expenses
How to Make a Claim
When making a claim, it is important to have documentation of your prepaid, nonrefundable travel expenses. That will help expedite the process. If your claims representative asks you questions regarding your reason for trip cancellation, it is because they want to be sure your reason for canceling falls under the correct benefit. Often times, travelers will attempt to file a claim under Cancel For Any Reason when it actually falls under a separate benefit. CFAR is a different benefit within your travel insurance policy than Trip Cancellation, and by filling the wrong type of claim, you can actually not receive your benefits in full.
The difference between a Cancel For Any Reason claim and a Trip Cancellation claim for covered reasons is 25%. Covered claims pay out 100% and CFAR pays 75%, so they want to be sure travelers receive proper compensation.
What it Doesn’t Cover
There are no reasons for cancellation that are not covered by CFAR, but you must purchase your travel insurance policy within 21 days of your initial trip deposit, buy enough insurance to cover the full cost of your trip, and cancel at least 2 days or more before departure to be eligible for the coverage.
It does not cover any expenses that will be reimbursed to the traveler. For instance, if a traveler purchased the Classic Plus plan and is now canceling their trip to Rio De Janeiro due to Zika virus and pregnancy and all suppliers are refunding or crediting them for their trip, there is no claim to be filed.
We hope this month’s travel insurance benefit spotlight helped you better understand CFAR. For more information on travel safety and travel insurance, don’t forget to sign up for our blog for more! Also, be sure to check-out the suite of TravelSafe plans that we offer here.