Credit cards are something each and every one of us utilizes on a daily basis, from purchasing meals to shopping and getting gas. However, credit cards are also quite a large part of another aspect of life: travel.
Traveling can be quite enjoyable, but there are times where things may go wrong, forcing you to cancel your trip. Having the flexibility to cancel and get reimbursed for trip expenses is something many may look for in a credit card’s travel insurance. However, not every one includes CFAR, or Cancel for Any Reason insurance. See which cards do offer this feature, and how travel insurance is recommended for your next adventure.
What This Guide Will Cover:
- What CFAR is and what it covers
- Which credit cards offer CFAR or trip cancellation
- Comparing credit card travel insurance and regular travel insurance
- How purchasing an insurance plan with CFAR is cheaper
What is Cancel For Any Reason Insurance?
Cancel for Any Reason (CFAR) is an add-on benefit to a trip insurance plan that allows you to cancel your trip for any reason and receive reimbursement, typically up to 75% of your total trip cost. CFAR can cover costs that would typically be considered non-refundable, allowing for travelers to have flexibility and peace of mind.
As long as you purchase your trip insurance plan within 15-21 days of making your first initial trip deposit, you can receive coverage under CFAR.
Do Credit Cards Offer Trip Cancellation?
While most credit cards do not include CFAR as a part of their travel insurance, there are cards that offer trip cancellation benefits:
1. Chase Sapphire Reserve Card
Under the Chase Sapphire Reserve credit card ($795 annual fee), there is a trip cancellation benefit, offering coverage up to $10,000 per individual, and $20,000 per trip with a maximum benefit of $40,000 for a 12-month period.
Does Chase Sapphire Reserve have Cancel For Any Reason (CFAR)?
No, the Chase Sapphire Reserve card does not offer CFAR benefits.
2. Chase Sapphire Preferred Card
Trip cancellation under the Chase Sapphire Preferred card ($95 annual fee) offers up to $10,000 per person and $20,000 per trip, with a $40,000 maximum benefit per 12-month period.
Does Chase Sapphire Preferred have Cancel For Any Reason (CFAR)?
No, the Chase Sapphire Reserve card does not offer CFAR benefits.
3. American Express Platinum Card
Under the American Express Platinum Card ($895 annual fee), trip cancellation provides coverage up to $10,000 per person with a maximum benefit of 20,000 per 12-month period.
American Express does offer an optional benefit called Trip Cancel Guard, allowing you to cancel your flight for any reason up to 2 full calendar days before departure and for a chance of up to 75% reimbursement. You can purchase Trip Cancel Guard after booking your flight on AmexTravel.com. The fee for Trip Cancel Guard is a percentage of the total flight cost, inclusive of taxes and fees.
4. Capital One Venture X Rewards Credit Card
The Capital One Venture X Rewards Credit Card ($395 annual fee) offers trip cancellation up to $2,000 per person for non-refundable common carrier tickets.
Does Capital One Venture X Rewards have Cancel for Any Reason?
No, Capital One Venture X Rewards does not have Cancel For Any Reason.
5. Marriott Bonvoy Brilliant American Express Card
The Marriott Bonvoy Brilliant American Express Card ($650 annual fee) offers up to $10,000 per trip for trip cancellation, with a max benefit of $20,000 per 12-month period. The Amex card also does offer Trip Cancel Guard, allowing for cancellation for any reason 2 days prior to departure for up to 75% reimbursement.
Does Mariott Bonvoy Brilliant American Express have Cancel For Any Reason?
No, Mariott Bonvoy Brilliant American Express does not have Cancel For Any Reason.
Why Should I Purchase Travel Insurance Separate from a Credit Card?
While credit cards may offer protection for delays, cancellations, interruptions, and rental cars, credit card travel insurance is designed to cover minor disruptions, not serious or high-cost situations. Especially for those traveling internationally, this can make a large difference.
For lengthy trips, vacations, family outings, or locations with high medical costs, a standalone travel insurance policy can provide more comprehensive protection. Travel insurance also includes a collection of hidden benefits, like a 24/7 assistance service providing support for trip planning assistance, lost passport, medical or legal referrals, and more. Travel insurance also offers more comprehensive medical coverage in comparison to credit cards, including sudden illnesses or emergency treatment.
More often than not, travel insurance plans with the CFAR add-on end up being cheaper than a credit card with cancellation benefits. Credit cards that do offer standard benefits often charge a higher annual fee than what you would otherwise pay for a basic travel insurance plan.
Best Travel Insurance Plans With Cancel For Any Reason
Best Affordable Cancel for Any Reason Travel Insurance: Battleface Discovery
Best Overall Cancel for Any Reason Travel Insurance Coverage: Trip Protection Choice
Best Cancel for Any Reason Insurance with High Medical Coverage: iTravelInsured Choice
- Cancel for Any Reason (CFAR) allows you to cancel your trip for any reason and can offer reimbursement up to 75% of your total trip cost.
- Credit cards that include trip cancellation include Chase Sapphire Reserved/Preferred and Capital One Venture X Rewards.
- American Express does offer Trip Cancel Guard, allowing you to cancel your flight for any reason up to 2 days before departure for a chance of up to 75% reimbursement.
- A standalone travel insurance policy can offer stronger, more comprehensive coverage.
Frequently Asked Questions About Credit Cards and CFAR
Do any credit cards include Cancel For Any Reason insurance?
While credit cards do not include CFAR, there are cards that offer trip cancellation benefits. The credit card that comes the closest to having a form of CFAR is the American Express card, offering a benefit called Trip Cancel Guard, allowing you to cancel your flight for any reason up to 2 days prior to departure for a chance of up to 75% reimbursement.
How much does CFAR typically cost?
Cancel For Any Reason cost typically costs about 40-50% of your base premium. For example, if your trip plan premium is $100 and you add the CFAR benefit, your premium would increase to $140-$150.
For a lengthy trip, is credit card insurance enough?
While credit card insurance may be sufficient for shorter trips, it is often not enough for lengthier or international trips. Credit card plans often have lower limits as well, making them unreliable for travelers seeking strong, comprehensive coverage. For long-term travel, an international travel insurance plan is recommended.
Can credit card insurance provide coverage for medical emergencies?
While credit cards can offer coverage for medical emergencies (evacuation, dental expenses) that may occur during your trip, coverage limits are often low, and sometimes are not enough to cover medical costs abroad.
Is CFAR worth it for travel?
Yes, CFAR is highly recommended for travelers. If anything were to go wrong or you needed to cancel your trip for any reason, CFAR could potentially result in saving expenses you could have lost (from 50-75% of your total costs), and provide you with a peace of mind.
Does coverage only apply if I use the credit card for travel purchases?
Yes, you must charge all your traveling expenses to the credit card to be eligible to derive its travel benefits. If you do book accommodations with a different card, it is likely that you will not receive coverage for those costs.
How can I purchase Cancel For Any Reason Insurance?
Cancel For Any Reason is an add-on that you can purchase on top of a standard trip insurance policy. Once you have selected your plan, you can purchase the CFAR add-on for a chance to receive reimbursement if you end up cancelling.
What non-refundable costs are covered under CFAR?
A prepaid, nonrefundable cost is any part of your trip you have paid for in advance that won’t be reimbursed to you if you need to cancel. For example: non-refundable hotel fees, non-refundable airline tickets, excursion costs, etc.
