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Trip cancellation coverage is a valuable part of the best travel insurance plans. This coverage reimburses you 100% for money lost when you cancel a trip for a reason listed in the policy. This can give you peace of mind that you won’t lose a ton of money if, for example, you get injured right before you’re supposed to leave on your trip.
But what if you want to cancel your trip for a reason that’s not listed in the policy? That’s where “cancel for reason” (CFAR) travel insurance comes in. It’s an upgrade that expands the reasons for cancellation beyond those listed in the base policy.
Maybe you don’t like the new Covid testing requirements of your destination. Or maybe you have decided you don’t like flying in cramped airplanes. “Cancel for any reason” coverage is your escape hatch. It can reimburse you for money lost on non-refundable trip costs (usually 75%) no matter what your reason for canceling is.
Add CFAR shortly after you make your first trip deposit.
Preferred & Deluxe
50% or 75%
$75,000 or $112,500
AIG Travel’s Preferred and Deluxe plans can provide solid cancel for any reason coverage.
Worldwide Trip Protector Plus
75%
$75,000
The plan’s CFAR coverage gives top-notch benefits.
Classic
75%
$75,000
The plan’s CFAR is highly competitive with other companies
Safe Travels Voyager
75%
$75,000
Trawick’s plan scored highly for its solid CFAR benefits
Travel Insurance Select - Plus & Elite
75%
$75,000
USI Affinity’s plans are among the top-scoring for CFAR coverage
To get “cancel for any reason” coverage you’ll have to purchase a base travel insurance plan and add “cancel for any reason” coverage within 14 to 21 days of your first trip payment. The deadline for adding CFAR will depend on the travel insurance company, and not all companies offer it.
If you have CFAR coverage, you can cancel your trip for any reason that’s not already a reason covered by your policy. You will generally be reimbursed for 50% or 75% of your pre-paid, forfeited and non-refundable trip costs. The percentage for reimbursement will be listed in the policy.
You might have to cancel your trip within two days of your departure to use CFAR coverage. For example, if you’re leaving tomorrow and you want to cancel your trip today, you may not be able to use CFAR coverage.
Make sure to read the policy’s fine print and know the deadline for canceling the trip if you want to make a CFAR claim.
“Cancel for any reason” coverage typically adds 40% to the cost of your base travel insurance price.
Keep in mind, travel insurance typically costs between 5% to 10% of your total trip cost. For example, if you paid $5,000 for your trip and your base policy was $500 (10% of trip cost), you might pay an additional $200 for CFAR coverage.
column 1 | column 2 |
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What does it give me? | The ability to cancel the trip for any reason, even if it’s not listed in your policy. |
How much do I get back? | Only a portion of what you lose to prepaid and nonrefundable deposits, usually 50% or 75%. |
Can I buy it any time? | No, you generally need to buy CFAR coverage within two to three weeks after your first trip deposit by adding it to a base travel insurance policy. |
Can I cancel my trip any time and use CFAR coverage? | No, you may have to cancel at least two days before departure in order to claim CFAR reimbursement. Once you’re within two days (48 hours) of leaving, CFAR coverage may be void. |
How much does “cancel for any reason” coverage cost? | Expect CFAR to add 40% to your travel insurance cost. |
If you want to cancel your trip due to the coronavirus, you can use CFAR coverage. Keep in mind, you’ll need to cancel your trip by the policy’s deadline for a claim (typically two days before your departure date).
Some policies will cover COVID-19 for trip cancellation and medical expenses. For example, if you’re diagnosed with COVID-19 right before your trip, these plans will cover the money you lose under the regular trip cancellation benefits.
See our ratings of the best pandemic travel insurance to see who sells these plans.
Forbes Advisor evaluated 24 travel insurance plans that offer “cancel for any reason” coverage. Among those, we used each company’s highest-scoring plan(s) to rate each company. Scores were based on:
CFAR purchase deadline (30% of score): Companies earned more points for having more time allowed to add CFAR coverage after a trip deposit.
CFAR maximum reimbursement % (20% of score): Companies earned more points for having a higher reimbursement percentage of the trip cost.
CFAR maximum dollar reimbursement (50% of score): Companies earned more points for having a higher dollar maximum for CFAR reimbursement. This is especially useful for travelers booking expensive trips. The CFAR dollar reimbursement is generally a function of the plan’s maximum trip cancellation reimbursement. For example, a plan that will insure a trip worth $150,000 can reimbursement more for CFAR than a plan with a trip maximum of $50,000, assuming they offer the same CFAR reimbursement percentage.
Identify the coverage types you want for your particular trip and then look for a policy that matches those needs, with ample coverage limits. For example, having a high amount of coverage for medical expenses may be important to you for a trip abroad.
See our ratings of the best travel insurance companies.
Travel insurance policies don’t cover fear of travel. But with CFAR coverage it doesn’t matter what your reason is—you can get partial reimbursement of your nonrefundable trip costs.
If your reason for canceling is listed in the policy, you can make a claim for trip cancellation. Common acceptable reasons include a natural disaster or terrorist attack at your destination, suffering an injury before the trip, or needing to attend the birth of a family member’s child.
Jason Metz is a writer who has worked in the insurance industry since 2007. As a former claims handler and fraud investigator, he’s seen a lot, and enjoys helping others navigate the complexities and opaqueness of insurance. He has a B.S. in Criminal Justice from Kutztown University and an M.F.A. in Creative Writing from the University of California Riverside, Palm Desert.