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How to Pick the Right Cancel For Any Reason (CFAR) Plan

How to Pick the Right Cancel For Any Reason (CFAR) Plan

Life is unpredictable. It’s cliche, but it’s true. So, how do you predict that the travel plans you’ve worked so hard to make will actually be as smooth as you’ve hoped? Unfortunately, there’s no guarantee. But you certainly can protect yourself from unexpected events by purchasing trip insurance.

Standard circumstances covered by general trip insurance policies include:

  • Travel delays
  • Trip cancellation & interruption
  • Terrorist attack & kidnapping
  • Loss of passport and baggage
  • Natural disasters
  • Bankruptcy of the travel service provide

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.

As travel regulations continue to evolve during the COVID-19 pandemic, travelers are having to face the reality that all travel is uncertain right now. Due to changing restrictions, trips and vacations are more likely to be cancelled or rescheduled. To be as covered as possible, travelers should consider purchasing Cancel For Any Reason (CFAR) coverage.

What Is Cancel For Any Reason (CFAR) Coverage?

CFAR is an add-on coverage that offers reimbursement when you cancel a nonrefundable trip for any reason. Please note that if you accept a refund voucher or a credit from your travel service provider - hotel or airline, it may impact your CFAR insurance claim.

Check with your insurance provider and read the policy document carefully.

How to Pick the Right CFAR Travel Insurance Plan?


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.

Credit rating

Look at the Credit Rating provided by agencies such as A.M. 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).

Basic travel insurance coverages

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

Claim 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.

How to Buy CFAR Coverage?

We have made a list of travel insurance companies that offer CFAR coverage. Not every insurance service provider offers CFAR. If you are buying through an agent or a provider, make sure to check if CFAR is available.

How Much Does CFAR Cost?

The cost of any insurance depends on the length of the trip, destination, age of the policyholder, deductibles, and coverage amount. Travel Insurance generally costs 4% to 8% of the total trip according to the US Travel Insurance Association. The cost of CFAR is typically 40% of the base travel insurance plan.

For instance, if you have paid $10,000 for your trip and your base policy was $800 at 8% of the trip cost, you might pay $320 for CFAR coverage.

Will CFAR Give Me a Full Refund for My Trip?

Depending on your policy details, refund percentages range between 40% to 75%. Most of the policies listed on our marketplace offer up to 75% refund on prepaid nonrefundable trip plans. For example, let’s say you have purchased a trip that cost $10,000 and you need to cancel your trip for a reason not covered by a regular travel insurance or credit card. In that case, you would lose $10,000.

However, if you purchase a CFAR coverage, you would lose only $2500 and get a refund of $7500. Make sure you read the fine print or speak to our licensed insurance specialist to confirm.

What Are the Limitations of the CFAR Travel Insurance Plan?

  • It does not offer 100% reimbursement. Depending on your policy details, you can recover 40 to 75% as reimbursement
  • It is time-sensitive. You must purchase a CFAR insurance plan as an add-on within 20 days of the date of purchase or deposit for the trip in question
  • You must purchase the CFAR insurance coverage for the full cost of all non-refundable prepaid trip arrangements; you cannot choose which leg of the journey you want to insure
  • Trip cancellation cannot be a last-minute decision. You will have to make the cancellation in no less than 48 hours prior to the departure date to get the reimbursement

Let’s say you have found the perfect getaway for your friends or family but you are worried about traveling because of the Delta Covid variant. Although you may have a valid fear of traveling, that’s not a covered reason by regular travel insurance or trip insurance. The only way to protect your non-refundable trip against any cancellation for any reason is to purchase travel insurance and get a CFAR coverage upgrade.