The Benefits of Cancel For Any Reason Insurance (CFAR)

The Benefits of Cancel For Any Reason Insurance (CFAR)

Cancel For Any Reason insurance can be an extremely valuable benefit for travelers in a variety of situations. However, this benefit is not included in basic trip insurance plans and must be added on for an additional cost.

Since Cancel For Any Reason does require an additional fee, travelers purchasing trip insurance may wonder whether or not it is worth it.

Let’s dive into the benefits of Cancel For Any Reason travel insurance and why it can be beneficial for travelers.

Cancel For Any Reason Trip Insurance Basics

Cancel For Any Reason trip insurance allows you to cancel your travel plans for any reason and receive reimbursement for a portion of your insured nonrefundable and prepaid expenses.

This benefit does not offer 100% reimbursement of your insured costs, but can offer anywhere from 50% to 75% reimbursement depending on your plan.

Cancel For Any Reason insurance also requires that you purchase your trip insurance policy within a certain timeframe, typically within 15-21 days of making your first initial trip deposit.

Trip insurance is only available to American citizens. CFAR is not available for travel medical insurance plans.

Does Travel Insurance Cover Cancellation For Any Reason?

A standard trip insurance plan does not cover cancellation for any reason. In order to have this benefit, you must pay an additional fee in your premium. Trip insurance does cover trip cancellation, but only for specific covered reasons which can be found in your policy’s description of coverage.

What Are the Benefits of Cancel for Any Reason Insurance?

Cancel For Any Reason insurance offers a simple benefit for travelers - if you need to cancel your travel plans for any reason at all, even if you just don’t feel like going anymore, you can recoup some of your trip costs to lessen your financial losses.

Key benefits of Cancel For Any Reason include:

  • Ability to cancel your travel plans for any reason not included in covered reasons under a standard trip insurance plan and still receive reimbursement on your insured prepaid and nonrefundable costs
  • Receive anywhere from 50% to 75% of your total insured nonrefundable trip costs for canceling your trip, which can include flight or accommodation expenses
  • Have the flexibility to cancel your trip, especially if you specific concerns regarding your travel plans such as you are unsure if your passport will arrive on time or if you have safety concerns about your destination
  • Knowing you're covered if you have to cancel lowers the stress of planning and coordinating your trips, so you can focus on getting the most out of your travels.

Basic Trip Insurance vs Cancel For Any Reason Trip Insurance

If you need to cancel your trip under a basic trip insurance plan, you're only covered under a limited number of circumstances. However, trip cancellation covered under a basic insurance plan generally provides 100% reimbursement if a covered situation forces you to cancel your trip plans. But, covered reasons may be limited.

When you purchase CFAR with your trip insurance plan, you can cancel your trip for any reason and still receive some level of reimbursement of your prepaid and nonrefundable expenses (usually up to 75%).

Under a basic insurance plan, there are significant limits as to what expenses can be reimbursed. When you add CFAR to your insurance plan, you may be reimbursed, depending on the policy, for a wider range of travel-related expenses, such as:

  • Transportation
  • Hotel deposits
  • Vacation rental stay
  • Car rental
  • Event tickets
  • Other travel expenses

Cancel For Any Reason Insurance Limitations

While CFAR is an advantage for many travelers, there are a few restrictions to keep in mind.

Timeline Constraints

If you want the extra financial safeguard this insurance offers, you'll need to purchase it when you purchase your original policy.

Should you need to cancel your trip, you have up to 48 hours ahead of your scheduled departure to do it.

Eligible Only If All Prepaid/Nonrefundable Costs Are Insured

When you purchase CFAR with your plan, you'll need to make sure all prepaid nonrefundable trip costs are insured and that this amount is added to the total trip cost. You must acquire CFAR insurance coverage for the full cost of all non-refundable prepaid trip arrangements.

Reimbursement Isn’t 100%

Your reimbursement depends on the amount specified in your policy, generally about 50% to 75% of covered costs. It does not provide a 100 percent refund.

Only Available for Trip Insurance

The CFAR benefit is only available for trip insurance plans; it is not an option for travel medical insurance plans.

For U.S. citizens and residents traveling within the country or overseas, the right travel insurance policy will help you pay for medical care during your trip and protect you against financial losses resulting from canceled or interrupted travel plans. Compare travel medical insurance plans.

How Much Does CFAR Cost?

CFAR coverage adds 50% to the cost of your base travel insurance price and travel insurance typically costs between 5%-10% of your total trip cost. Let’s say your total trip cost is $5,000 and the price of your base travel policy is $500, (10% of trip cost), you might pay $200 to add CFAR insurance to your plan. In this case, the total cost to insure your trip with the CFAR add-on would be $700.

Is CFAR Insurance Worth It?

Knowing that any circumstances are covered under CFAR the added cost can be worth it. A cancellation policy fills in the coverage gaps of a basic travel insurance policy.

To ensure complete coverage, travelers should consider purchasing Cancel For Any Reason (CFAR) coverage. It can help recoup the costs that come with canceling your trip when unforeseen circumstances arise such as:

  • Your trip is expensive.
  • Your trip involves multiple destinations.
  • You’re less than 100% certain you’ll be able to go.
  • You’re nervous about what might be happening in your destination country by the time the departure date comes around.
  • Travel bans to and from your country of origin or your destination are more likely.

In these cases and more, spending a little extra for CFAR is a bargain considering that with only a standard travel insurance policy, you could lose thousands of dollars if you have to cancel your trip due to a non-covered reason.

Although some people only rely on similar coverage that travel credit cards claim to provide, that coverage can often come with a long list of exclusions. Please note that not all cards may provide such protections. Be sure to check with your bank/credit card company to know exactly what is covered and what isn’t.

How to Pick a Cancel For Any Reason Plan

Here are some tips to follow that can help you pick the best travel insurance for Cancel For Any Reason.

Determine Eligibility

Some insurance policies are limited to certain states in the U.S. and residential status. For example, the CFAR add-on for the Travel Safe Classic plan is not available to residents of New York.

Review Credit Ratings

Look at the Credit Rating provided by agencies such as AM Best, Fitch, and Standard & Poor's. The rating is given on the assessment of overall financial strength that is the insurer's ability to meet policyholder obligations. Make sure your base insurance plan has a good rating.

A score of A (excellent) by renowned credit rating agencies such as AM Best is considered a gold standard. All the policies listed on VisitorsCoverage are rated A (excellent).

Assess Basic Travel Insurance Coverage

Since CFAR is a supplementary coverage, evaluate the basic coverages of your base plan. For instance, if your base plan covers trip interruption, plans like Safe Travels Voyager by Trawick International, offer up to 150% of the trip cost for trip interruption.

Understand the Claims Process

Look for policies with a straightforward claim process and good customer support. Speak to our Customer Success Team to understand which policy will match your requirements.

Best Cancel For Any Reason Insurance Plans

Here are some recommended trip insurance plans that offer optional Cancel For Any Reason coverage.

Safe Travel Voyager by Trawick International

The Safe Travels Voyager plan is designed for those in search of the highest available benefit limits to protect their trip.

Highlights of Safe Travels Voyager Plan:

  • Includes primary medical coverage up to $250,000 per person
  • Covers trip costs up to $100,000 per person
  • Provides coverage for pre-existing medical conditions on plans purchased prior to or with final trip payment
  • Trip cancellation: 100% of trip cost
  • Trip interruption: 150% of trip cost include trip delay of $2,000 for potential accommodations/lodging expenses
  • Baggage delay $600 (8 hours or more)
  • Baggage and personal effects $2,500

The CFAR option covers 75% of the prepaid, non-refundable, forfeited payments paid for your trip if your trip gets canceled for any reason not otherwise covered by the policy. A generous 21 days is available to add the CFAR coverage after your initial trip deposit.

TravelSafe Classic

The TravelSafe Classic plan is one of the most popular and comprehensive travel insurance plans by TravelSafe and has higher limits on all-important benefits such as medical evacuation.

Highlights of the TravelSafe Classic Plan:

  • Trip cancellation: 100% of trip cost
  • Trip interruption: 150% of trip cost
  • Travel delay up to $750 missed connection (3 hours)
  • Pre-existing coverage: covered if the plan is purchased within 21 days of the initial trip deposit by the pre-existing condition waiver
  • Emergency medical evacuation up to $ 1 million
  • Baggage & personal effects up to $2,500
  • Interruption for any reason: up to 75% of nonrefundable trip costs
  •  Baggage delay (12 hours or more): $250

As with other plans, the CFAR coverage provides 75% reimbursement of your prepaid, non-refundable trip costs if you cancel your trip 2-3 days before your departure date and have 21 days to add the CFAR after your initial trip deposit.

VisitorsCoverage Can Help

VisitorsCoverage is committed to helping you find the best plan available for your individual needs. Please contact our Customer Success Team and we’ll be there to answer your questions so you can focus on your upcoming travels.